this post was submitted on 11 Jul 2025
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[โ€“] Sunshine@lemmy.ca 8 points 2 days ago (7 children)

The US holds 30.51% of the worldโ€™s economy and they produce highly sought after goods.

[โ€“] SapphironZA@sh.itjust.works 9 points 2 days ago (2 children)

Its only 9% of global trade though. https://www.wita.org/ustrade/us-trade-trends/

Significant, but the rest of the world can transition away from that without too much difficulty.

[โ€“] oneser@lemmy.zip 3 points 1 day ago (1 children)

Within an infinitely long timeline, yes. Transitions take time and few are willing to take the immediate financial (and thus political hit) to do so.

One example is pharmaceutical companies, which represent a significant portion of goods produced in Europe. There is no market similar to the US where prices and consumption are both significantly high, so I would argue they would simply take a significant hit.

Economics is rarely done in long term thought because political cycles rely on economic performance. It's stupid, but here we are...

[โ€“] 3dcadmin@lemmy.relayeasy.com 2 points 16 hours ago

It is also about confidence which is a real short term thing. First thing I was taught in Economics lessons was governmental policy and fiscal policy rely on confidence - a no-confidence vote is exactly how most governments fail, the same is true of how a fiscal policy pans out. One bad decision can ruin confidence and bingo we are looking at a crisis

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