‘That is Maganomics’: where Trump is taking America on trade

Contact Your Elected Officials

Maverick economist turned presidential adviser Peter Navarro has helped bring back a world in which power takes precedence over economic exchange. Will he prove his critics wrong?

Seven years ago, I strode through the long black-and-white corridors of the White House’s Executive Office of the President to a room occupied by Peter Navarro, adviser to the then president Donald Trump. 

Navarro’s desk was buried beneath piles of paper. “I’m always messy,” the economist laughed, and presented a 140-page report with an American flag on the cover titled “Assessing and Strengthening the Manufacturing and Defense Industrial Base and Supply Chain Resiliency of the United States”This asserted that the US had become dangerously reliant on overseas suppliers for vital goods and thus needed industrial policies and trade controls.

“That’s a bit retro,” I joked. The last time such language had proliferated was during and after the second world war, when the American government tried to shape business to national ends. In peacetime, arguably the only comparable moment was the explosion of protectionism around the world that followed the Wall Street crash of 1929.

That episode ended so badly that by the late 20th century, industrial policy and tariffs seemed as unfashionable as flappers. The corridors of the EOP were filled with officials with a free-market, pro-globalisation ethos, who generally viewed trade through the lens of the classical economist David Ricardo (1772-1823). Their assumption was that open trade benefits all: countries export goods to earn money to pay for imports, and if each specialises in areas of comparative advantage, then everyone is better off.

“Ricardo is dead!” Navarro replied, before launching into a diatribe against America’s more mainstream economists — and the Financial Times, which Navarro’s friend, the rightwing agitator Steve Bannon, liked to say was akin to the church newsletter of a religion they wanted to overturn. I pointed out that the criticism was mutual.

Navarro shrugged. “You and the other FT writers will eventually know that I am right — you’ll see!” I walked out, report in hand, my heels clacking on the marble floors.

By Gillian Tett

Read Full Article on FT.com

Financial Times
Financial Timeshttps://www.ft.com/
The Financial Times is a British daily newspaper that focuses on business and economic current affairs, news, politics and opinion.

Democrats Exhibit the Dunning-Kruger Effect (DKE)

“The Dunning-Kruger effect is a cognitive bias where people with low ability at a task overestimate their competence, while those with high ability underestimate their competence.

250 Countdown

Those 56 intrepid men who signed put their very lives, honor and fortunes on the line. There was no auto-quill to accommodate their signatures. 

How the Senate Parliamentarian Changed the OBBB

An unelected bureaucrat does a important job in the U.S. Senate. Elizabeth MacDonough enforces senate rules on Trump’s “One Big Beautiful Bill”.

Bioterror Roundup: CDC Director Nominee Is a Monster + New mRNA Pregnancy Studies

Bioterror Propaganda Roundup: The latest updates on the “new...

The Sacred Honor of the 56

Today we're celebrating the sacred honor of the 56 men who signed the Declaration of Independence.

300 Percent Increase in American Investors Defrauded by ‘Ramp-and-Dump’ Stock Fraud: FBI

There's been a surge of criminals targeting stock investors in the US in “ramp-and-dump” stock manipulation scheme via messaging apps and social media platforms.

32 Dead, Including 14 Children, as Dozens Remain Missing in Texas Flood Disaster

At least 27 people, including 9 children, have died in catastrophic flash flooding that struck central Texas on July 4, leaving devastation across region.

Judge Allows Deportation of Illegal Immigrants to South Sudan After Supreme Court Ruling

Federal judge allowed Trump admin to deport illegal immigrants to South Sudan, after Supreme Court ruling blocked previous block on their removal.

TSA Announces PreCheck Discounts for Gold Star Families, Military Spouses

TSA announced members of Gold Star families will be able to register with the TSA PreCheck program for free, while military spouses will receive a discount.

Trump Signs Tariff Letters to 12 Nations Ahead of Looming Deadline

President Trump has signed letters that will be sent to around a dozen nations ahead of next week’s deadline to reach a trade agreement..

Trump Says US Will Hold Talks With China on Possible TikTok Deal Next Week

President Donald Trump told reporters on Friday that U.S. officials would begin talks with China about a potential TikTok deal next week.

Trump Indicates Legislation for Hiring Illegal Aliens on Farms

Trump to allow illegal immigrants who work on farms to continue working to prevent unnecessary disruptions to farming across the country.

US Keeps Pressure on Chinese Goods Amid Vietnam Trade Deal

Transshipping—rerouting goods through a third country to disguise the origin of the products—is a focal point of trade negotiations with Asian markets.
spot_img

Related Articles