What are Spanish Exports?

What would happen if America stopped all imports and exports?

• Hypothetically speaking what would happen if America would stop all imports and exports? What would happen if suddenly everything would have to be "Made in America" and all oil imports, "Made in China" manufactured goods etc were stopped (or very heavily taxed)? Ditto for exports of raw resources? What would be the effect on American and world economies short and long term.

• Answer:

  In the short term, the US and world economy would completely collapse. Many nations depend on the US as a market for their goods, and without the consumers in other nations, the US would have excess of some goods but not enough of other things which we import (such as oil, electronics). Not to mention that the world's financial markets would seize up as dollars were no longer available to exchange for local currencies, and banks were unable to lend to businesses and individuals. Almost immediately there would be massive black markets abroad to buy goods made in the USA, and massive black markets in the US to buy foreign made goods. In the medium term -- assuming that the people did not revolt and overthrow the government that imposed the restrictions (which... they would, believe me), the overall utility (happiness) of society would be reduced greatly. GDP per capita would decline sharply and many people would become unemployed as their jobs had to focus production on goods that could be produced within the USA with USA resources. Prices would probably fall sharply for some goods (things that are made easily and cheaply here, which would flood the American market) and increase sharply for other goods which can only be made from foreign inputs or produced in foreign countries. In the long run... most people be alright, but everyone in the world would suffer from a lower standard of living. Many people (millions? tens or hundreds of millions?) in the third world who depend on US markets, goods, and foreign aid would suffer and probably die. Markets are very resilient, even if the people who constitute them are not always resilient, so the world market would eventually return to a "steady state," but without the USA. Like a blanket with a big hole in it.