The problem with Trumponomics 2.0
The problem with Trumponomics 2.0
One of the strongest arguments behind former President Donald Trump’s 2024 campaign is the economic record from his first term in office. Inflation and unemployment were low, economic growth was solid, and many people remember his presidency, at least before COVID-19, fondly as a result. However, Trump’s recent policy evolutions are radically undercutting this case for his reelection.
Except for his trade restrictions, which were still somewhat narrow in the grand scheme of the U.S. economy, Trump’s first-term economic policies were classically conservative: tax cuts, deregulation, and other pro-growth, free market reforms. But the former president is now straying from this approach with his proposals, meaning he can’t guarantee the same results.
For instance, Trump has proposed taking his somewhat narrow trade restrictions, mainly targeting China, and blowing them up into an all-out trade war with the entire world. He has proposed a 10% or even 20% flat tariff, aka tax, on all imported goods, even from allies and neighbors. Not only would this surely prompt retaliation, but it would also cost Americans thousands of dollars in increased costs every year via higher consumer prices, something most families can’t afford after years of inflation under President Joe Biden…