On Trump, Paul Krugman, and the American Economy
He calls himself the tariff man, but with much of objectivity, he isn’t the tariff man, he should be called a tamer
To better understand the above statement, it’s imperative we analyze the policy of the Trump administration objectively. Paul Krugman wasn’t wrong when he said ‘If Trump was elected, the economy will crash”, neither was he wrong when he said, “is the economy stupid”.
For someone who is a Nobel laureate, you’ll think they’ve mastered the ability to be rational and non-partisan but the influence of the cultural war has affected thought process, facts don’t matter anymore but emotions do, as long as you play the victim card, you’ll be fine, that’s the doctrine of the elites.
The Trump economy has taken off since his inauguration, you’ll expect the friction between the two biggest economies in the world – by production, should cause some damage. We’ve seen some heat in some parts of the targeted industry, but you definitely need to understand what’s behind the Trump economy that’s been exceeding expectations.
The timing of the first tariffs was almost perfect, during this period, the administration was cutting regulations to historic low, engaging in pro-business policies and taking the message deep into corporate America, and they listened, at the same period, the administration was granting subsidies to Farmers and protecting steelworkers, altogether, that unleashed the spirit of the American dream.
I expect to see some sort of shock absorber in the US, but the Chinese are already stretched, their current model won’t absorb much of the fallout, China needs a deal, Xi knows it but he’s willing to see who blink, but he’s surely never met a businessman who lost over $1 billion dollars in the 90s and came back stronger.