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Geopolitical Economy Report

How Trump's tariffs will accelerate US decline

Feb 9, 2025
Michael Hudson, an economist known for his critiques of neoliberalism, and Mick Dunford, a scholar based in China with insights on global trade, delve into the repercussions of Trump's tariffs. They argue these measures could accelerate U.S. decline, highlighting how protectionism might backfire and exacerbate inflation. The discussion contrasts historical contexts with modern trade dynamics, assessing the U.S.'s waning competitiveness and how nations might adapt to shifting global power. They also critique the differing globalization approaches between the West and China.
01:05:15

Podcast summary created with Snipd AI

Quick takeaways

  • Trump's tariffs, perceived as a quick fix to trade deficits, overlook deeper issues like neoliberal policies causing deindustrialization and inequality.
  • The lack of a coherent industrial strategy in applying tariffs raises inflation risks and complicates economic conditions for American consumers.

Deep dives

The Nature of Trump's Big Lie

Trump's election messaging revolves around the idea that the American public is suffering primarily due to the trade deficit with various countries, particularly China, Mexico, and Canada. This narrative oversimplifies the complexities of the U.S. economy, diverting attention from deeper issues like decades of neoliberal policies that have led to deindustrialization and rising inequality. Instead of addressing these root causes, Trump resorts to blustering and blames external factors, creating an illusion of action for domestic audiences. Ultimately, this portrayal serves more as a political strategy than an effective solution to systemic economic problems.

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