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Trump should wage a war on waste instead of battling the world over trade

Trump should wage a war on waste instead of battling the world over trade

"President Donald Trump is fighting the wrong fight in his ongoing trade war with the rest of the world. That’s because it’s premised on the old-school notion of the linear economy in which someone in another country, such as China, digs up raw materials and sends them to a factory, where they get turned into the finished product and shipped to the U.S. In exchange, money leaves the U.S. economy and flows to the countries where the product was made – creating the trade deficit Trump despises."

"And here’s the important bit. Americans use the product for a while, throw it away, and it ends up in a dump. And then we buy another import."

"The long-term effect? Our money goes to a foreign economy, and Americans end up with piles of garbage. Then we pay a foreign economy one more time to take the garbage off our hands. China is one country that used to take a lot of our garbage, but India, Pakistan and Nigeria are also big in this business."

"A circular economy, by contrast, starts with the finished product, which can then be recycled domestically and reused, often at a fraction of the cost of manufacturing them new elsewhere. This keeps the money at home, which produces more domestic jobs and wealth. "