2.5 min. read
Just a brief look-see and some pointed prognostications on what may be in store… Following yesterday’s decisive defeat of the Republicans at the hands of the Democrats all up and down the ballot – from Dog Catcher to Governor and Senator…
Trade talks with the US might be easier, after all, now
that the Democrats are in power in Washington…
What about the tariffs, the Iran War (and oil prices), the trade talks, and the bad feeling currently dividing Canada and the US? There’s potential for positive changes, but many factors in the overall scenario remain in flux…
Potential for improvement
There’s definitely potential for positive changes in Canada-US relations now that the Democratic Party is in command of both the US House of Representatives and the Senate. But positive and how far reaching they’ll be remains to be seen.
The whole world is hoping the democrats force a rollback of Trump’s tariffs. Even many Americans, who’ve been clobbered by higher costs and disruption of cross-border traffic.
Likewise, the world is watching to see if the Democrats can dial down or even eliminate the detested human right violations and cruelty of Trump’s ICE immigrant ‘cleansing’ program.
But most import to most people everywhere is whether the new powers in Congress force an end to the Iran war, and re-open the global oil trading system.
Oil is key
Most commenters I’ve seen on TV and heard on the car radio this morning say restoring some sense and order to the oil market will have many positive effects for us all.
The Democrats, in theory, have the power to mandate retail price decreases for both diesel fuel and gasoline, as well as home hating oil, natural gas and electricity. Gas and diesel fuel will come down in price a certain amount on their own once shipping restrictions in the Middle East are eased. That means cheaper transportation for the vast majority of food products – which are shipped by deisel-powered cargo ships, and than transferred to deisel-powered transport trucks.
Domino effects…
But there are many spin-off effects of cheaper energy costs, too… Farmers can run their machines at lower cost, and parts and service costs can be expected to come down, over time.
Food processors and manufacturers will enjoy reduced transportation costs for raw materials they have to buy in – from all over the world.
Any products – notably plastic packaging – made from petroleum should come down in price.
Fairer trade deals
But the main benefit to consumers in Canada, Mexico and the US will come from fairer trade deals which the Democrats are expected to push once they get their footing as the Governing Power.
One aspect of this development will be that American farmers will be able to buy cheaper potash fertilizer from Canada. And Canadian potash producers will see an major increase in demand.
Improvements should start to appear at the supermarket within a couple of weeks or a month of the Trump tariffs being lifted. And product variety and selection will improve in tandem with that.
My take
So… The future looks a lot brighter with the Democrats firmly and unassailably in command in Washington.
But much depends on what they decide to do to rectify the unwise measures Trump has taken on the economy, oil and other issues. Will the new Congress act on the immediate needs of millions of Am-ericans for affordable food, energy and health care? And how will it address those crises?
More to the point for many, How long will it take beneficial effects to trickle down to the consumer level? I predict it will be at least 6 months before we start to see any real, palpable improvement in ‘daily life as we know it’…
~ Maggie J.