WSJ Opinion: Potomac Watch Does History Show Trump’s Tariffs Are Doomed to Fail?
Jun 5, 2025
Former Senator Phil Gramm, a notable economist and co-author of "The Triumph of Economic Freedom," joins the conversation to dissect the effects of Trump's tariff policies. He argues that these tariffs may harm American manufacturing and poses a risk for the Republican Party in the 2026 midterms. Gramm emphasizes the importance of understanding historical precedents and challenges commonly held beliefs about free trade and economic policies. His insights ask whether tariffs ultimately lead to economic stability or chaos.
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Industrial Revolution Elevated Workers
- The Industrial Revolution elevated workers by providing more opportunities despite poor city living conditions.
- Economic growth expanded faster in Britain during this period than ever before, raising living standards significantly.
Government Housing Policies Caused Crisis
- The 2008 financial crisis was caused largely by government housing policies lowering lending standards.
- Banks and government-created quotas pushed risky subprime loans, not deregulation or greed.
No Hollowing Out from Trade
- No hollowing out of U.S. manufacturing; production value is higher than ever despite fewer manufacturing jobs.
- Tariffs historically fail to improve production or living standards and have caused political backlash.
