The David Frum Show Treating Friends Like Enemies
21 snips
Apr 9, 2025 
Rahm Emanuel, a seasoned political operative who served as White House chief of staff, shares invaluable lessons from the 2008 financial crisis and critiques contemporary Democratic strategies. He emphasizes the importance of honest information to rebuild trust in U.S. foreign relations, particularly post-tariff policies. Emanuel also discusses the fragile dynamics with allies like Japan and China, urging collaboration across political lines to navigate economic turbulence and address failures in education and infrastructure that undermine the American dream.
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Trump's Tariff Disaster
- Trump's tariffs caused a $6 trillion stock market loss, 30 times the cost of Hurricane Katrina.
- This economic damage is worsened by the lasting harm to America's reputation and trade relationships.
Market Impersonality
- Financial markets reacted negatively to Trump's tariffs, not out of spite, but due to a realistic assessment of decreased company value.
- These markets operate impersonally, reflecting collective global decisions, not political bias.
Tariffs and Value Chains
- Tariffs raise costs for consumers and producers, impacting every step of the value chain.
- Each component of a product becomes more expensive, leading to higher final prices and disruptions.