Slate Money | The Truth Behind Donald Trump’s Tariff Talk
Dec 28, 2024
auto_awesome
Join Paul Krugman, the renowned economist and former New York Times columnist, as he delves into the intricate dance between politics and economics. He discusses how political loyalty shapes economic advice, particularly in the context of trade and tariffs under Trump and Biden. The conversation takes a dive into healthcare reforms like single-payer systems, the legacy of Biden's fiscal policies, and the implications of trade wars. Krugman also touches on historical lessons from economic crises, highlighting how they inform today's policy decisions.
Paul Krugman discusses his shift to self-publishing, allowing greater freedom to express candid economic insights amidst evolving media landscapes.
The podcast delves into the consequences of Donald Trump's tariff policies, highlighting the dangers they pose to North American manufacturing and global trade dynamics.
Deep dives
Paul Krugman's Transition to Self-Publishing
Paul Krugman shares his transition from a long career in traditional journalism at major outlets like the New York Times to self-publishing on Substack. This shift allows him more freedom to express his viewpoints with less restraint, providing a platform where he can be more candid and analytical than he could in his previous roles. Krugman discusses how the New York Times appears to be moving towards a model that encourages less frequent contributions, highlighting his desire to maintain a robust presence in journalistic discourse. His new routine of daily posts aims to engage audiences with his insights on economics and policy, as he embraces the evolving landscape of media.
Trump's Trade Policy and Tariffs
Krugman analyzes the implications of Donald Trump's trade policy, highlighting his longstanding obsession with tariffs as a means of economic strategy. He underscores Trump’s simplistic belief that trade deficits equate to national failure, which has led to the unpredictable imposition of tariffs on major trading partners like Canada and Mexico. Krugman notes that during Trump's first term, his significant achievement was the renegotiation of NAFTA into USMCA, yet he now appears to contradict his earlier work by threatening tariffs against both countries. The potential consequences of these actions could destabilize the integrated North American manufacturing sector, demonstrating a profound misunderstanding of global trade dynamics on Trump's part.
The Legacy of Biden's Economic Policies
Krugman reflects on President Biden's economic policies, suggesting that they will be viewed more favorably over time despite immediate criticisms related to inflation. He asserts that high inflation, largely driven by global supply chain disruptions tied to COVID-19, is a challenge that has affected many advanced economies, not just the U.S. Biden's rapid recovery measures were intended to balance the need for job growth and economic stimulation against inflationary pressures. Ultimately, Krugman believes that Biden will be remembered for his effective management of the economy amid significant challenges, even if political narratives currently overshadow these successes.
The Complexities of U.S. Fiscal Policy
The conversation around U.S. fiscal policy reveals deep divisions and challenges ahead, particularly with a potential Trump administration returning to power. Krugman emphasizes that despite Trump's inclination to cut government spending, such actions are politically unpopular since they often target essential programs like Medicare and Social Security. There’s a recognition that addressing long-term budget issues requires thoughtful solutions, such as tax increases or improved revenue collection methods, which have no bipartisan support. This scenario poses significant risks for the U.S. economy, as failing to address these fiscal challenges could undermine economic stability and exacerbate existing inequalities.
This week: Paul Krugman may have ended his iconic New York Times column but he’s still going to tell us what’s going on. Felix Salmon and Emily Peck are joined by Paul Krugman to get wonky on global trade, discuss the relationship between politicians and economists, and examine the economic legacy of Joe Biden.
In the Slate Plus episode: Favorite media of 2024.
Want to hear that discussion and hear more Slate Money? Join Slate Plus to unlock weekly bonus episodes. Plus, you’ll access ad-free listening across all your favorite Slate podcasts. You can subscribe directly from the Slate Money show page on Apple Podcasts and Spotify. Or, visit slate.com/moneyplus to get access wherever you listen.
Podcast production by Jessamine Molli and Cheyna Roth.
Disclosure in Podcast Description: A Bond Account is a self-directed brokerage account with Public Investing, member FINRA/SIPC. Deposits into this account are used to purchase 10 investment-grade and high-yield bonds. As of 9/26/24, the average, annualized yield to worst (YTW) across the Bond Account is greater than 6%. A bond’s yield is a function of its market price, which can fluctuate; therefore, a bond’s YTW is not “locked in” until the bond is purchased, and your yield at time of purchase may be different from the yield shown here. The “locked in” YTW is not guaranteed; you may receive less than the YTW of the bonds in the Bond Account if you sell any of the bonds before maturity or if the issuer defaults on the bond. Public Investing charges a markup on each bond trade. See our Fee Schedule. Bond Accounts are not recommendations of individual bonds or default allocations. The bonds in the Bond Account have not been selected based on your needs or risk profile. See https://public.com/disclosures/bond-account to learn more.