Glenn Diesen - Greater Eurasia Podcast Trump's Economic Recovery - a Dead End? Michael Hudson, Alexander Mercouris & Glenn Diesen
Feb 17, 2025
Join renowned economist Michael Hudson, who critiques US economic policy, and political commentator Alexander Mercouris, known for his insights on international relations. They challenge the effectiveness of tariffs in reindustrializing America, arguing that past economic models don't match today's reality. Hudson reveals the complexities of sound money and debt, insisting that simply cutting spending won't revive industry. They also explore geopolitical strategies around transport corridors and urge for new economic thinking in BRICS and Russia, contrasting it with the status quo.
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Tariffs Alone Won't Re-Industrialize The U.S.
- Michael Hudson argues tariffs alone cannot re-industrialize the U.S. because they ignore public investment and socialized services that lower production costs.
- He warns tariffs risk raising domestic input prices and destabilizing integrated North American supply chains.
Privatized Services Raise Production Costs
- Hudson says privatizing healthcare and education raised U.S. production costs and priced American industry out of export markets.
- He claims restoring public services is essential to make high wages compatible with competitive industry.
Tariffs On Inputs Hurt Manufacturing
- Raising tariffs on intermediate goods like steel increases costs across manufacturing and can create a price umbrella harming competitiveness.
- Hudson notes 19th-century tariffs avoided taxing raw materials for that reason; Trump's approach ignores this distinction.
