Donald Trump and the End of Post-war Economic Order
The return of Donald Trump to the political arena signals a shift away from the post-World War II economic structure towards his MAGA (Make America Great Again) movement, raising questions about its implications on the global economy.
Key Elements of MAGA Economics
- "America First" Policy: Emphasizes protectionist measures appealing to diverse groups including blue-collar workers and tech industry leaders.
- Economic Proposals: Includes ending inflation, imposing tariffs, expelling undocumented immigrants, reducing taxes, and downsizing government.
- Contradictions: Mainstream economists note the difficulty of achieving these aims simultaneously, as tariffs and tax cuts could be inflationary.
Understanding MAGAnomics
- Inconsistency: Unlike traditional economic schools, MAGAnomics lacks coherence, mixing elements from diverse economic theories.
- Key Influences: Draws from advisors like Peter Navarro and Robert Lighthizer, yet remains a mix of conflicting doctrines.
- Emotional Appeal: Resonates emotionally with followers, focusing on themes of pride, humiliation, and anger rather than analytical rigor.
Socio-cultural Underpinnings
- Deep Story: Sociological insights suggest Trump’s supporters feel excluded from the American Dream, blaming outsiders and elites for their plight.
- Symbolic Struggle: Redefines the American worker as part of a cultural battle against globalism, rather than an economic figure.
Critique and Future Implications
- Challenge to Orthodoxy: MAGAnomics is seen not as an anomaly but as a response to the failures of traditional economic frameworks.
- Need for Economic Introspection: Economists are urged to address the flaws in post-war economic assumptions to prevent the rise of similar movements.
