Decisions, Decisions

While on the trail for his presidential campaign, President Trump criticized President Obama for taking part in a deal that eased United States sanctions against Iran in exchange for reductions in its nuclear programs. He promised to be tough on Iran because he believes that the country cannot be trusted. Also while on the campaign trail, Trump promised to increase manufacturing and the job market of the U.S. in general. Now, he is placed in between a rock and a hard place when faced with a new deal with Iran.

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On April 4, 2017, Boeing stated that it agreed to sell 30 units of their 737 MAX aircraft to Iran Aseman Airlines, and to sell another 30 units to them at a later date (reaching a total of $6 billion); adding on to the previous deal of $16.6 billion made with Iran Aseman Airlines in December, thus resulting in a contract totalling $22.6 billion. This sale has been permitted under the 2015 nuclear agreement which lessened economic constraints on Iran in return for promises of peaceful nuclear work. Although it has been permitted under this agreement, it still needs to be approved by the United States government. Opponents of this deal believe that Iran could (illegally) use the planes for military purposes; whereas supporters rebuke this claim, believing that the deal would forbid this misuse of the planes.

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President Trump has not yet released information regarding his support or opposition to this pact, although he has made his opinion on the nuclear agreement public, declaring it a “terrible deal”. According to the U.S. Department of Commerce, about 18,000 new jobs would be created following the approval of this agreement based simply on the magnitude of the sale. This would help Trump realize his promise of igniting and increasing the job market, which would have an overall positive effect on the economy due to the increase in labor (which would lower the unemployment rate). It is important to note that the increase in employment would not be significant enough to result in a nation-wide inflation. All in all, the increase in jobs would simply reduce unemployment, fulfilling one of the promises made by Trump while campaigning to be President of the United States.

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Thus, this deal puts President Trump in a tight spot seeing as though Iran is desperate for new planes and the pact would create thousands of new jobs in the U.S.; but the President is slow to trust the country based on its shaky history regarding nuclear and missile programs. Do you think the increase in employment is enough to make President Trump overlook his negative feelings towards Iran in order to benefit the economy? What do you think he should do?

 

http://www.cnbc.com/2017/04/04/boeing-signs-new-3-billion-deal-with-iranian-airline.html

https://www.nytimes.com/2017/04/10/world/middleeast/iran-boeing-jetliner-rouhani-trump.html

https://www.usatoday.com/story/money/business/2017/04/04/boeing-co-says-signed-new-deal-iranian-airline/100013846/

 

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2 thoughts on “Decisions, Decisions

  1. cnhend19

    While job creation is essential to our still-recovering economy, I wonder if there are other ways to achieve this without taking these risks.

    Reply

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