By now, it should be obvious that Trump is not simply stupid and ignorant (two different conditions), although he is both. He is severely mentally ill. He has not simply pursued mistaken policies, he has pursued petty vengeance–when he isn’t pursuing personally profitable grifts.
The clown show Trump calls a “cabinet” has already inflicted major damage on critical aspects of governance: public health, civil liberties, Social Security and more. Now–with the advent of his insane tariffs–he has begun the tanking of an economy that economists agreed was the best in the world at the end of the Biden Administration.
Even before the announcement of the scale of these unbelievably stupid and damaging tariffs, Paul Krugman wrote what any halfway sentient observer already knew: their imposition is a declaration of an all-out trade war that America will lose.
As I said, I don’t know exactly what will be announced later today. One safe prediction, however, is that over the next few days we’ll see many news analyses purporting to explain the thinking behind this radical change in U.S. policy.
Such analyses will be a waste of time, because there’s nothing to explain. I’m not saying that the Trump team’s thinking is unsound. I don’t see any thinking at all.
Krugman focused on two major internal contradictions in Trump’s intended justification.
Here’s the story: Trumpers are claiming that tariffs
1. Won’t increase prices, because foreign producers will absorb the cost
2. Will cause a large shift in U.S. demand away from imports to domestic production
3. Will raise huge amounts of revenue
If you think about it for a minute, you realize that (1) is inconsistent with (2): If prices of imports don’t rise, why would consumers switch to domestically produced goods? At the same time, (2) is inconsistent with (3): If imports drop a lot, tariffs won’t raise a lot of money, because there won’t be much to tax.
So the public story about tariffs doesn’t make any sense. And Trump’s rants about tariffs go beyond nonsense..
Does he really believe that Canada is a major source of fentanyl? Worse, does he believe that fentanyl smugglers pay tariffs?
But is it all a cover for the real, probably sinister agenda of Trump’s tariff push?
No. There isn’t any secret agenda, devised by people who know that the public story is nonsense. How do I know that? Because who, exactly, do you think is devising this secret agenda?
As he goes on to note, today’s Democrats and Republicans get their policy advice from very different sources: Democrats engage people with credentials and expertise. They still may be wrong, but they’re drawn from pools of folks having recognized expertise. Republicans these days prefer “experts” who are pure hacks–people who can be counted on to support whatever the party says.
Krugman was writing before Trump’s unveiling of his insane tariffs. In the wake of that announcement, former Treasury Secretary Lawrence Summers posted that “The best estimate of the loss from tariff policy is now [close] to $30 trillion or $300,000 per family of four.” Former Vice-President (and Trump toady) Mike Pence was quoted as saying that “The Trump Tariff Tax is the largest peacetime tax hike in U.S. history.” Dow futures lost 1200 points. A coalition of 12 countries officially moved to abandon the dollar in favor of local currencies for cross-border trade.
And that was just on day one.
MAGA cultists may not recognize the likely economic devastation, but a majority of American businesspeople do. So do the “profit over patriotism” lawyers who have bent the knee rather than stand up for the rule of law. And so do the economists and related scholars who work for the universities that have cowered and complied in order to retain federal grants.
In barely three months in office, an ignorant and petty madman has done incalculable damage to the rule of law, to the social safety net, to public health, to America’s alliances abroad– and now to a once-flourishing economy.
Increasing numbers of citizens are coming to understand the gravity of these actions. Call me Pollyanna, but I think the tariffs will provide a wake-up call to the cynical plutocrats who have been willing to go along with the mad king–ignoring the incredible damage being done to average Americans– in hopes of profiting from further tax cuts.
There’s an old political adage to the effect that matters have to “hit bottom” before spineless officials will take action. There’s an excellent case to be made that–thanks to our obviously insane Chief Executive–we’re there.
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