The conventional wisdom that no one wins in a trade war is “horse hockey,” CNBC’s Rick Santelli said Tuesday.
Rick Santelli, whose 2009 rant against President Barack Obama’s stimulus plan helped spark the Tea Party movement, said:
When I hear so many people from so many countries that are bureaucracies say the following–“There are no winners in a trade war”–I would say, “Horse Hockey.” My answer would be why do so many people all over the world go on strike? Because it is exactly the same model. You are going to lose being the employees, your employers are going to lose. So why do it? Because one or both sides over time, once the new agreement is made, will make up for lost time and they’ll have a better logistical set-up. And that’s why they go on strike.
Santelli said that in this analogy, the U.S. is akin to the workers going on strike to seek a better deal.
“I’m not sure how its going to end but I feel fairly confident that the conventional wisdom description will not be the accurate one,” Santelli said.