17 Ferbruary 2025
We spoke with the renowned economist Michael Hudson regarding Trump’s plan for economic recovery. The use of tariffs was important for US industrialisation throughout the 19th century as it enabled infant industries (low quality, high cost) to develop and become more competitive vis-a-vis Britain’s mature industries (high quality, low cost). However, today’s economy is defined by complex supply chains that are disrupted by tariffs. As a result, the US producers can be affected unfavourably if their finished product is no longer competitive as a result of components and resources under tariffs. Furthermore, the industrial capitalism of the 19th century entailed tax on rent-seekers and oligarchs to finance infrastructure and education in order to elevate the standard of living and make the overall economy more competitive. An economic recovery cannot be restricted to tariffs as Trump must also deal with the oligarchs.
Be the first to comment