Yesterday, there was a popular meme floating around on social media that pointed out how the stock market has been dropping ever since the Democrats won the majority in the House of Representatives. This is true, but only partially. In fact, the two days after election day were among the highest closes the Dow Jones has ever had.
After some post-election market jitters, the stock market gained over 1500 points from November 23 to December 3. It appeared the market was going to remain strong through the end of the year. Then, President Trump did something silly. He Tweeted his continued support for tariffs and even gave himself a nickname.
….I am a Tariff Man. When people or countries come in to raid the great wealth of our Nation, I want them to pay for the privilege of doing so. It will always be the best way to max out our economic power. We are right now taking in $billions in Tariffs. MAKE AMERICA RICH AGAIN
— Donald J. Trump (@realDonaldTrump) December 4, 2018
As a handful of conservatives might remember, it was less than four years ago when the Republican Party was considered the party of free trade. It was Senators Chuck Schumer and Bernie Sanders who were pushing for tariffs on China and the GOP adamantly opposed them. In the Trump era, “fair trade” is now the way Republicans plan on boosting the economy and bringing back American jobs.
It won’t work.
The only way to advance our economy over the rest of the world, thereby increasing job and wage numbers and improving nearly every economic indicator, is by removing the roadblocks to business that have been accumulating for decades. Cut taxes (more). Cut bureaucracy. Cut regulations. Most importantly, cut tariffs and adopt the free trade model again.
By removing the federal government as much as possible from the equation, it will be American exceptionalism, innovation, and sheer economic brute force that empowers us to become the undisputed leader of the global economy. Tariffs are an antiquated model that doesn’t work in a global economy that is no longer reliant on single sources in order to thrive. I had a Twitter thread that broke it down earlier:
On December 3, the Dow Jones finished higher than it did on Election Day. The next morning, President Trump proclaimed himself as a #TariffMan. Since then, the Dow has lost over 15%.
I'm old enough to remember when the GOP promoted free trade. That was less than 4 years ago.
— JD Rucker (@JDRucker) December 26, 2018
This isn't the 1960s. Very few nations are forced to accept our exports. They need us to import, and therein lies the strength of the American capitalist model. Trade deficits are not the economic indicators they were five decades ago. We are a heavily consuming nation now.
— JD Rucker (@JDRucker) December 26, 2018
I support much of what the President is trying to do. Cut taxes – Great! Build the wall – Yes! But you don't bring back American jobs through tariffs. Again, this isn't the 1960s. You bring back American jobs by removing the barriers that prevent US businesses from dominating.
— JD Rucker (@JDRucker) December 26, 2018
This is the most progressive global economic plan we've seen since Jimmy Carter. It's essentially a form of taxation on American consumers and US businesses in hopes that China will fold. But they won't. They don't have to because, as I said, this isn't the 1960s.
— JD Rucker (@JDRucker) December 26, 2018
I'll post a more thorough explanation on https://t.co/VWOWZYqYJp
— JD Rucker (@JDRucker) December 26, 2018
We don’t need the President to be a #TariffMan. We need DC to get out of our way. Lower taxes, remove regulations, reduce bureaucracy, and open up trade so American exceptionalism can do the heavy lifting. That’s a true #AmericaFirst economic model.
