What would happen to the US if we closed our borders to all trade?

Question

This is meant to explore what would happen if we became completely reliant on our own domestic labor and resources. What would happen to the United States economy if foreign trade was closed; no more imports from china, no more Japanese cars, no more H1B visas, no foreign nationals attending our universities. No more military activity or presence outside US territories. All goods and products would be domestic. US producers could not export - the domestic market would be their only market. This also would mean no more foreign aid - that money would go towards domestic aid.

Also, what affect would this have on the global economy?

Answer 1

The global economy would be hurt due to the loss of a major market. Why should we care about them? They don't care about us. China would have to fund their military build up from within. Since their people are intentionally kept poor, we could scratch one enemy.

The US economy, after a few stumbles would explode into a huge increase in prosperity. The foreign goods now sold at big box outlets like Chinamart would have to be replaced by goods manufactured in the USA. Unemployment would plummet, welfare could be practically eliminated, and America would return to the secure and powerful economic engine it used to be. The jobs that have been shipped out of this country would return over the course of just a few years. You might even be able to understand the computer tech support person on the telephone.

As an example: Just consider how many auto workers would be recalled if America returned to driving Fords and Chevys as opposed to Toyota. Those auto workers would then spend their paychecks on other goods made in the USA. The domino effect on our economy would be a beautiful thing to see. And that's just one industry.

The money saved by not having our military act as the world's policemen could help fund an excellent education system. Any healthy adult would either work or starve. In the mean time, those truely in need of help could be well taken care of. Granny's Social Security would allow her to live a decent life. Not lavish, but decent.

The cut off of foreign aid could only produce wonderful results. The rest of the would would have to get their act together and take care of their own people. Why should we contiune to feed people who want to kill us?

Our dependence on foreign oil would be abruptly reversed. This would hurt for a short time. Prices would spike up. But, in short order, American industries would develope alternative sources and types of energy to replace the oil that at present supports terrorists.

There are many more advantages to your senario. However, this is not a good forum to discuss them. I hope I have given you some food for thought.

Answer 2

This would be disastrous for the US but not nearly as bad for the rest of the world's economies.

Examples of what would happen in the US include: the economy and production would shrivel up; prices of many commodities would skyrocket; the dollar would become virtually unconvertable (like the rouble used to be in Russia); unemployment would go through the roof; wages would take a nosedive; the foreign aid you talk about redirecting would have to be used to feed starving Americans; insufficient oil would mean a wholesale change to the way we move about and run industrial and agricultural machinery.

These are just some of the effects which would, I am quite certain lead to either an immediate reversal of that policy or a civil war to achieve that end.

The global economy would not be as badly affected, as they would, presumably, still be trading among themselves. This means that they would still have access to raw materials, oil, etc that could be traded cross-border. In fact, if the US was no longer consuming these foreign raw materials, they would probably become significantly cheaper on world markets (simple supply and demand). There would have to be a monetary correction globally and those foreign companies that own US interests are likely to take a significant hit as their assets rapidly devalue. That said, the rest of the world would, on the whole, get along just fine.

Answer 3

We don't need to close our borders, just make trade more equitable. Japan sends us far more cars than we can send them, jobs here are being "outsourced" to India, China etc. because big business can pay people in those countries far less. Americans just want a level playing field.

Answer 4

You would starve to death.

Answer 5

US and world economic collapse. Welcome to poverty.
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