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James Carville's famous political maxim ("It's the economy, stupid") needs updating. As we all ride out the Trump Slump in various ways, what we've got now is: "It's the stupid economy." The people running things are stupid. They are making stupid decisions. They have no clue whatsoever what they are doing, and it shows. Stupid is as stupid does. Welcome to The Stupid Economy, folks.
What exactly is the point of the Trump trade war? Asking this question to different people in the White House gets you different answers, and Trump himself (as usual) contradicts himself almost daily, attempting to have things both ways. The clueless nature of the entire exercise is becoming more and more apparent as the first week of the Trump trade war draws to a close.
Well, not really, not yet -- not enough to justify that particular word, but hey, we couldn't resist....
While it doesn't rise to the level of a "revolt" quite yet, there is already a significant pushback on the Trump tariff war coming from within the ranks of his own party. One Senate bill to rein in the tariffs already passed with four Republican votes, and that number has now grown to seven GOP senators who are cosponsoring an even wider clawback of the constitutional power of levying taxes from the White House. Significantly, now a House Republican has said he's going to introduce a companion bill in the House.
This isn't enough -- not yet, at any rate. But it is rather surprising to see happen so quickly. But then this whole self-inflicted economic crisis has been moving rather swiftly all around, so perhaps it's not that surprising to see.
So, does everyone feel wonderfully "liberated" now?
President Donald Trump, in his second term, decided to liberate himself from having any adults in the room when he made important decisions. Instead, he surrounded himself with ass-kissers and other assorted sycophants, all of whom tell him he is great no matter what crazy notion pops into his head.
This is the result. Yesterday, the Dow Jones average lost 1,600 points. Today it lost another 2,200 points. Trump has singlehandedly crashed the economy -- and we're only two days in.
There is no shortage of colorful language (and memes!) being used today to describe the new Trump Tax we're all about to pay -- after having been "liberated" from, y'know, paying less money for stuff. I chose the term financial pundit Ross Gerber used to describe it for the headline, as it seemed the most descriptive:
So... is everyone ready to pay more for everything? Because that's why America elected Donald Trump president, right?
On Wednesday, Trump will be announcing sweeping tariffs on the entire rest of the world. As he likes to put it, "tariff" is his new favorite word in the dictionary. But consumers are likely to call it what it will actually be, to them: a tax. A big fat "Trump Tax" on all sorts of things consumers buy. Which will likely drive up inflation, and which will definitely hit consumers hard in the pocketbook.
In keeping with the "world turned upside-down" nature of this week, we are going to start with a few things that haven't been front-and-center, then we'll circle in to a bigger-picture take, and finally we'll fit in the big story of the week at the end.
Happy St. Patrick's Day to all!
First, let's just quickly check the weather report from the Emerald Isle, shall we?
(Heh.)
But surprisingly enough, the country that caught my eye this particular Paddy's Day wasn't Ye Ould Sod, but instead our neighbor to the north. And it wasn't the fine stout product from Sir Arthur Guinness that intrigued my beer-loving sensibilities this year, but instead... Moosehead?
That's right. Moosehead beer (lager, actually, if you want to be pedantic). From Canada.
As is now the new normal, there were so many things happening in the political world this week it is hard to keep track of them all. But what is currently in the center ring is the vote happening in the Senate on the continuing resolution to fund the government for the rest of this fiscal year.
While the biggest political spectacle of the week was the president's big speech to Congress, the biggest political news of the week was actually the American economy reacting to Donald Trump's on-again-off-again, now-you-see-them-now-you-don't tariffs. The whiplash began at the start of the week and hasn't fully subsided yet. Taken together with all of Trump's other disruptive wrecking balls, economists are now starting to talk about the possibility of an upcoming "Trump recession."