02 July 2018

The 1980s Called

The Business Insider published a great piece yesterday (link here) about how Donald Trump's push for tariffs will be as economically destructive in the 2010s as they were in the 1980s.

No one really wants tariffs. Not Republicans nor Democrats. Not America's trading partners and allies.

Trump is pushing them because he believes the same nonsense about trade deficits as tariff hawks believed in the 1980s, and tariffs only ended up increasing the trade deficit.

Trump has kited up the national debt with his unnecessary tax cuts that aren't paid for, so if he actually understood trade, finance, and economics, he needs trade deficits in order for foreign investors to have more money to buy his debt. So turning off the faucet will actually harm his own policies, not to mention his own voters.

One is tempted to cheer on Trump's self-destructive policy because it will hurt him at the polls, but that means other people will suffer. Nonetheless, it's yet another piece of evidence demonstrating how Trump is the worst President in modern American history.

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