Donald Trump’s economic philosophy is oddly systematic, but mostly chaotic. His policies all aim to break the status quo. Equally, if not more important, they want to transform the economic opportunity of the United States. Trump’s beloved tariff regime looks doomed by the US Supreme Court. As this historic process unfolds, his ambitious economic vision gets more and more challenged and debated.
In its ambition and audacity, Trump’s economic policy is a pearl beyond price. That’s because it seeks to upend the orthodoxies that have dictated US economic policy for the past 40 years. It reflects a desire for a muscular state role in economic affairs, albeit with a different implementation compared to current administration policies. His strategy includes a populist message that resonates with many Americans, particularly those who feel left behind by globalization and technological advancements.
The harm caused by Trump’s destructive policies did not happen all at once. This process has played out over many years. It’s about making smart choices and investments to steer a new course for the American economy. In fact, Trump’s expressed concerns about the long-term viability of his tariff regime. He proposed that if it’s struck down, he will need to “unwind” some of the trade deals that he has already created.
Given that his whole economic agenda depends on the Supreme Court not overturning his tariffs, that would put monumental questions about the future of his economic agenda. Many of Trump’s first-term tariffs on China were intended to create a more level playing field. He championed American manufacturers through this limited, direct route to victory. What could come out of this chaotic time is an economy that looks very different from the last few decades.
Now Trump’s economic policy has intermingled with national priorities, including the serious objective of reducing our carbon emissions while creating more jobs in the process. His approach diverges from traditional methods. His enthusiasm for working with the Fortune 500 has brought him buckets of gold from many wells. In fact, oddly enough, even people like Bernie Sanders have begun supporting Trump’s plan to invest in Intel in exchange for government grants!
Even with such support, the Trump administration’s economic strategies have not escaped criticism. Some Republicans have termed his approach “socialism.” This label embodies those divisions currently roiling the party over the future incline of US, and indeed world, economic policy. These internal conflicts underscore the complexity of Trump’s vision, which appears to lay down tracks that could guide future governments, regardless of their political affiliations or priorities.
Additionally, under his administration, policy decisions have worried advocates about potential rollbacks of environmental and labor standards. His administration’s purposeful and malicious tearing down of regulations created to uphold these standards has attracted intense criticism from multiple advocacy organizations. In particular, the tech industry—and especially those who supported Trump—have loudly and openly decried their regulators such as the National Labor Relations Board (NLRB). They view the NLRB as one of the biggest threats to their business models.
Even in this time of uncertainty and turmoil, the Trump economic message is still fundamentally populist. He’s trying to reach the average American who is tired of the status quo and ready to stop the roller coaster of economic catastrophe. As this economic desert changes, more and more people are asking what the US economy should be as we move to the future.
“Confidence that the political economy of the west was a model for the future of mankind had been linked to the belief that western elites knew what they were doing. Suddenly it was obvious that they didn’t.” – Ivan Krastev and Stephen Holmes