Trump's Economic Recovery - A Dead End?
Michael Hudson, Alexander Mercouris & Glenn Diesen
We spoke with the renowned economist Michael Hudson regarding Trump’s plan for economic recovery. The use of tariffs was important for US industrialisation throughout the 19th century as it enabled infant industries (low quality, high cost) to develop and gradually become more competitive vis-a-vis Britain’s mature industries (high quality, low cost) before accepting free market competition. However, today’s economy is defined by complex supply chains that are disrupted by tariffs. As a result, the US producers can be affected unfavourably if their finished product is no longer competitive as a result of components and resources under tariffs. Furthermore, the industrial capitalism of the 19th century entailed tax on rent-seekers and oligarchs to finance infrastructure and education in order to elevate the standard of living and make the overall economy more competitive. An economic recovery cannot be restricted to tariffs as Trump must also deal with the oligarchs.
MORE! PLEASE!
"As a result, the US producers can be affected unfavourably if their finished product is no longer competitive as a result of components and resources under tariffs"
It all depends on how fast US can become self sufficient.
Ideally for any country it would be full reliance on its own produced goods and services with surplus being sold to outside world (original capitalism foundation). US started as Capitalist then became Financialist ending as Debtalist economy. Both later systems make more and easy money but have an expiry date and are easy to substitute by others just by emulating it.
If Trump does what I think he may be doing, he is trying to rake the world's zen garden and rearrange it so that US can become central piece (but not the only piece - that hose have bolted) - hoping that being there first will make the US take the prime spot. Alas, it would be not the first time I could be wrong ;-)