Maxwell School News and Commentary

"The Chinese are not going to be buying our soybeans, so almost by musical chairs our soybeans are going to Europe,” Mary Lovely, professor of economics, says about the EU's response to China's tariffs on American soybeans. 

Mary Lovely, professor of economics, explains why lower-income consumers, who tend to buy more goods from countries such as China, might end up feeling squeezed more than their higher-income counterparts.

"The biggest price hikes may be seen among these lower-priced products, and the effect of that will hit people toward the lower end of the income distribution more," says Professor of Economics Mary Lovely.

"More firms will follow Harley’s lead and move production overseas," says Mary Lovely, professor of economics. "Can’t blame them. Many companies are being put in very difficult positions." 

"Unless there’s congressional intervention, it’s hard to see where this goes," says Mary Lovely, professor emeritus of economics at the Maxwell School, about President Trump's combative trade stance.

"This divide-and-conquer strategy is not entirely unexpected, especially now that the three-way negotiating process seems to have hit a wall," says Mary Lovely, professor of economics, on President Trump's NAFTA talks.

Shana Gadarian, associate professor of political science, says those who pay attention to politics tend to be more partisan and often set aside information they find inconsistent with their beliefs. "To the extent that you like this administration," she says, "you might say this is just the way business is done. This isn’t a concern."

"They failed to drill down on the biggest frictions facing U.S. businesses and on those where we are most able to move the Chinese," Mary Lovely, professor of economics, says of the vague statement the U.S. and China released regarding the trade conflict.

Mary Lovely, professor of economics, says it’s impossible to protect American consumers and put maximum pressure on China at the same time.