After all, their worsening dispute increases the risk of a trade war which, coupled with a currency war, would lead to "beggar-thy-neighbor
" (that is, lose-lose) outcomes cascading throughout the global economy.
Allianz Global Investors has predicted more protectionism, more inflation, a higher cost of borrowing and divergence between national "winners" and "losers" in a beggar-thy-neighbor
world of protectionism.
Another group, citing historical precedent, warns that beggar-thy-neighbor
trade measures can quickly spiral out of control, taking a heavy toll on living standards.
Prior to its passage, states took a beggar-thy-neighbor
approach to transportation investments, focusing on local routes in hopes of drawing economic activity away from neighboring states.
His "America first" slogan is nothing less than a beggar-thy-neighbor
This is the reason why such moves are referred to as beggar-thy-neighbor
policies (Beggar Thy Neighbor, May 20, 2013).
If Trump moves forward with unilateral trade sanctions, a trade war is likely to ensue: one where there will be few winners and the world could move toward beggar-thy-neighbor
protectionism of the kind last seen in the 1930s.
He said resisting the beggar-thy-neighbor
mentality is a lesson the world learned from the global financial crisis.
They pursue self-serving, beggar-thy-neighbor
migration policies-such as building border fences-that further fragment the Union, seriously damage member states, and subvert global human-rights standards.
Disparate tax rules among different countries have resulted in close to a zero-sum game for national governments, which are forced to pursue beggar-thy-neighbor
policies to secure a bigger slice of a shrinking pie.
These should include looser fiscal constraints; more investment; an end to beggar-thy-neighbor
wage cuts; and lower taxes on labor.