S2 Ep1036: Jonathan V. Last: An Economic Tsunami Is Coming
May 6, 2025
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Jonathan V. Last, Editor of The Bulwark and political commentator, shares his insights on the looming economic storm. He discusses the significant reduction in shipping traffic due to trade policies, which could lead to consumer shortages and soaring prices. Last highlights the troubling transformation of the U.S. economy into one riddled with corruption, especially regarding cryptocurrency ties to Trump. The conversation also touches on implications for American jobs and industries amidst a wavering political landscape, providing a mix of urgency and dark humor.
The cancellation of 40% of containership traffic between Asia and the U.S. indicates a looming consumer goods shortage and price inflation.
Trump's cryptocurrency initiative is being leveraged by businesses seeking favor amidst trade tensions, highlighting the intersection of politics and economics.
The podcast discusses how corruption under the Trump administration threatens traditional economic practices, reshaping industry loyalty towards political favoritism instead.
Deep dives
Efficient Caregiver Matching
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The Impact of Trump Coin on Business
The conversation highlights a trucking logistics firm planning to invest a staggering $20 million into Trump's cryptocurrency, which contradicts its relatively low market value of merely $4 million. This jump in investment is perceived as an attempt to gain favor with the Trump administration amidst ongoing trade tensions, underscoring a trend where businesses feel pressured to financially support the president's initiatives for survival. Early adopters of the Trump Coin saw a spike in its value during promotional events but have since watched it decline sharply. This reveals a broader commentary on the intersection of business and politics, illustrating a troubled new economy influenced significantly by political connections.
Authoritarian Tendencies and Corruption
The podcast delves into how corruption in the Trump administration is transforming economic practices and governance. It disrupts the traditional mechanisms of lobbying, as companies are increasingly incentivized to directly contribute to Trump rather than relying on established political channels. This shift raises concerns about the implications for American capitalism, akin to a system reminiscent of feudalism where loyalists are rewarded at the expense of integrity. The discussions point to a future where market value may rely on political favoritism rather than true meritocracy.
America's Economic Downturn
The podcast examines how current policies are driving the American economy towards a potential recession, with escalating tariffs on imports creating substantial risks for U.S. businesses. Logistics experts warn of looming extinctions for many companies as operational costs rise unchecked, encouraging foreign entities to buy out failing American brands. With the outlook bleak, industry leaders stress the catastrophic consequences of maintaining a trade war without a clear resolution, leading to long-term economic instability. As companies withdraw earnings forecasts, the alarm bells ring for a deeper economic crisis ahead.
The Growing Disconnect in Politics
A notable sentiment expressed in the podcast is the disconnect between politicians and everyday citizens. Many constituents, who once supported Trump, are beginning to reassess their allegiance as they are impacted directly by governance failures, such as cut programs affecting local fire departments. The local officials, having once aligned with the administration, now face disillusionment as they witness the repercussions of budget cuts on critical training and resources for public safety. This shift poses a larger question about the sustainability of political support based solely on promises rather than tangible results for communities.
Because Donald Trump's stupid trade embargo has us reading shipping charts, we now know that 40% of containership traffic between Asia and the U.S. has been canceled. That means a shortage of consumer goods, which will push prices higher. At the same time, the business environment is too unpredictable for companies to plan. Meanwhile, Trump is reorienting the American economy to a corrupt oligarchy—as he rakes in billions in bribes off his crypto. Plus, Hegseth wants to clear out a chunk of the top brass, U.S. attorney nominee Ed Martin forgot to say he's been on Russian-state media outlets more than 150 times, and the DNC absolutely should not be posting about Kamala at the Met Gala.
