The tariff apocalypse that wasn’t
As of this writing, the DOW is sitting comfortably in the green, up 2.25% so far today. Not quite the economic apocalypse we were told was imminent, was it? Jim Cramer’s weekend prediction of another Black Monday should have been the first sign that clear skies were on the horizon. After all, Cramer’s investment advice always has a perfect inverse track record. If he says sell, you buy. If he says inflation is under control, it’s probably time to buy gold. And he was just as perfectly wrong about the economic effects of Trump’s tariffs as he’s been on everything else. $6.6 trillion in stock market valuation was obliterated in two days last week. Not my money, not your money, but the money of the already-obscenely wealthy. And those wealthy howled in increasingly high pitches, sending the world’s canines into a frenzy, and demanding “action”, meaning a dramatic intervention by the Federal Reserve. Jerome left them hanging, refusing to bail out
We should be asking ourselves why the global economy hinges on America never ever ever imposing tariffs on anyone, ever. But the world can impose them on us at their leisure, and we’re expected to just take it. Cheap imported garbage flowed into the US for decades, as well as cheap labor. Convenience, for the American consumer, has become an opiate of the highest order. Cheap, convenient, never-ending junk, has weakened our spirit, and our ability to support national self-interest rather than economic self-interest. Other nations are allowed to behave like nations, but America is expected to behave like an economic zone, a faraway land of rich consumers who will buy the world’s garbage. As a result, we have no industry, only a fading afterimage of one that one existed.
America must never be allowed to behave like a real nation, according to the tariff-resisters. We must never be allowed a real sense of national identity, or national self-respect, lest the world lose their guaranteed market, their sure-fire buffalo herd of millions of mindless consumers upon who they can then airdrop their latest sweat-shop products.
In the face of the wailing, gnashing of teeth, and tear-stained 100’s, Trump, like an immovable block of lead, has not budged an inch. We are not an economic zone, we are a nation, and we expect to be treated like one. And his immovability has paid off. Nations are falling over themselves to get a seat at the negotiation table, ready to make a deal. Even Australia, who has no tariffs in place with the US, and even runs a trade deficit with us. Why did Trump impose a 10% tariff on the Ozzies? Maybe for kicks, maybe because Australia is a nanny state dystopia. Who knows? But it sure is amusing hearing their Prime Minister openly panic in that accent.
The tariffs are a first step to Fortress America, where we exist for ourselves, and serve ourselves, families, and communities first. Not the world.