Rarely has an economic policy been repudiated as soundly, and as quickly, as President Trump’s Liberation Day tariffs.
The Wall Street Journal, May 13, 2025.
Last edition:
The heavy duty, or at least heavy, premium American automobile of the golden age of American manufacturing which Trump seems to dream can be restored through tariffs.In reality, capitalism is based on the idol of money. The lure of gain gradually destroys all social bonds. Capitalism devours itself. Little by little, the market destroys the value of work. Man becomes a piece of merchandise. He is no longer his own. The result is a new form of slavery, a system in which a large part of the population is dependent on a little caste.Robert Cardinal Sarah.
I don't use the term "insanity" here lightly. Donald Trump is, I am convinced, rather dumb, obviously economically ignorant, and suffering from dementia. That nearly half the country could vote for him is simply beyond me, but they did, and the Republican Party, which was once the party of business has fallen right into line.
I suspect Americans voted for him as they have a poor grasp of economics themselves and see it only through what they've experienced in their own live and that of their immediate predecessors. Americans, came to view the economy sort of like Billy Joel expressed it in Allentown:
Well, we’re living here in Allentown
And they’re closing all the factories down
Out in Bethlehem they’re killing time
Filling out forms
Standing in line
Well, our fathers fought the second World War
Spent their weekends on the Jersey shore
Met our mothers in the USO
Asked them to dance
Danced with them slow
And we’re living here in Allentown
But the restlessness was handed down
And it’s getting very hard to stay
Well we’re waiting here in Allentown
For the Pennsylvania we never found
For the promises our teachers gave
If we worked hard
If we behaved
So the graduations hang on the wall
But they never really helped us at all
No they never taught us what was real
Iron and coke
Chromium Steel
And we’re waiting here in Allentown
But they’ve taken all the coal from the ground
And the union people crawled away
Every child had a pretty good shot
To get at least as far as their old man got
But something happened on the way to that place
They threw an American flag in our face
Well, I’m living here in Allentown
And it’s hard to keep a good man down
But I won’t be getting up today
And it’s getting very hard to stay
And we’re living here in Allentown
Problem is, a sense of economic nostalgia evolving into economic rage doesn't grasp economics at all.
The US didn't become an economic and manufacturing giant because of something really special in the American system or some amazing native genius. It was the simple forces of economics that apply to corporate capitalism, combined with the Second World War, that caused it.
Largescale industry can really only be developed through capitalism or socialism. In Europe, it was capitalism that introduced it in the form of the Industrial Revolution. The US as a manufacturing titan came about as the Industrial Revolution came to the US late, not because we were better at it. The arrival of industrialism in the United Kingdom and a united Germany reflected the eras in which it occurred, and it occurred there first. Capitalism, in the end, just like socialism, seeks to serve itself, and in the case of capitalism it does it by viewing human beings as consumers, as opposed to the socialist workers, and trying to get them to consume as much as possible. It does that by seeking to make products faster and cheaper, amongst other strategies. Seeking efficiency products not only relentlessly advance, but manufacturing methods do as well. But manufacturing method require massive investment of capital. Once machines are in place, the economic incentive is to use them as long as they can be, given the investment. This means that new start ups always have the advantage in equipment, as they are starting with newer stuff.
Added to that, industrial Europe was destroyed during World War Two to a large extent. The Allied air forces bombed German industry into rubble. What was left after the war was taken back to the Soviet Union if was east of the Elbe. The Soviets themselves had suffered massive economic dislocation in of their factories, which were forcibly created in the Communist system. Japan's industry, which was real, but not nearly as advanced as the other major combatants, had been destroyed by the United States Army Air Force. The US, however, remained untouched and with a massive consumer demand built up due to the war and the Great Depression, US industry came roaring back and dominated the globe. . . right up until other countries could rebuilt, which very much started to show itself by the late 1960s.
One of the things nearly destroyed during the Second World War was Distributism. Distributism really came up as a line of thought as a "third way" between Communism and Capitalism during the 1920s and the Great Depression The tensions that came out of World War One saw the Socialist far left dramatically rise in power and take over the government of Russia, and briefly Hungary. They vied for control of Germany, and effectively did take over Poland in a modified form. Wars and struggles broke out in numerous places as Socialism sought to effect global change. In opposition to it rose not only fascism, but extreme capitalism. Distributists sought to effect a more sane and humane path. But when the war came they, and their intellectual fellow travelers the agrarians, put aside their efforts to support the war effort, which in the West meant unleashing capitalism in aid of the war effort. When the war ended, the economic crisis that it had brought about in Europe and the Cold War caused it to carry on, and very successfully, with Distributism being all but forgotten.
Capitalism, however, if not heavily regulated, results in the same end result as Socialism, single entity control of a machine that serves itself. In Socialism the machine claims to serve the workers, but claims to identify itself as the workers. In Capitalism the machine serves itself while claiming to serve "consumers". Neither system really cares about people at all.
American capitalism, particularly after Ronald Reagan, favored unyielding corporate growth, with one corporate machine eating another. As foreign economies rebuilt after the war, or started up after the war, corporations naturally moved manufacturing overseas, and the American government did not stop to do anything about it, believing fully in capitalism. To a certain extent, it favored manufacturing moving overseas as it conceived as many manufacturing jobs as less than ideal, and with some reason to look upon them that way, but just as the nation had a "cheap food" policy that hurt family farmers, it had a "cheap goods" policy that hurt the domestic manufacturing sector.
It can well be argued, and it has been, that something should have been done to arrest the relocation of American manufacturing. But in reality, that day was long ago. It was clear in the 1970s what was occuring, but the nation, lead by a much more sober and serious group of politicians, did not elect to intervene. Now, of course, we have Donald Trump, who doesn't seem to grasp even basic economics and who has made his money, it might be noted, in a highly anti distributist industry.
It's nearly impossible to define what Trump's economic vision is, as he probably doesn't have one. It seems to be ruled by nostalgia and a complete failure to grasp basic economic principals. Trump seems to look back on the econmy of his youth as a natural one, and believe that if tariffs are imposed all the old industries will come home. A very wealthy man, he doesn't seem to care what that does in terms of imposing his tariffs all at once, and if it creates a devastating trade war, so be it.
What Trump has no interest in, however, is disrupting capitalism. He's okay with whipping corporate entities into relocating into the US, or devastating the economy with the thesis he can make it happen, in what amounts to a type of autarky, but the basic evils of capitalism are of no interest to him.
Some closer to Trump envision something more sinister, it seems, a jump starting of an AI driving manufacturing economy. The concept is that tariffs will not only pressure industry to relocate here, but when it does, the next stage in the relentless Industrial Revolution evolutionary cycle will occur. Basically, baseball caps now made in Vietnam (none of them seem to be made here) will be made by robots in the US. Human laborers in Indochina, who depend on their jobs to feed their families, will be made unemployed while factories owning robots here in the US will profit.
It's immoral.
But what of Distributism?
Some of this probably should make any distributist rethink some basic propositions, as frankly Distributism, like Trump's tariff policy, would have the impact of making some things more expensive. Maybe many things. But the economic impact of it would be distinctly different.
Distributism policies, as long noted here, would take the corporations out of retail and agriculture. In agriculture, for the most part, that would not actually have a great impact on prices, save in certain instances (poultry for sure, perhaps pork). But it would also have a levelling effect. Virtually nobody would get fantastically wealthy in these industries, but many rank and file workers would get back up into the real middle class. Therefore the economic impact would be levelling, more than anything else.
Manufacturing, as we've noted here before, is a much tougher nut to crack. We've had some suggestions in the past, but frankly the lesson of the Trump tariffs is that they may frankly be unrealistic. We'd favor partial employee ownership of larger manufacturing entities. We could still argue for that, but it's tough for industries like the clothing manufacturing industry, whose workers are mostly overseas. I suppose it could still be argued for, however. A person here, however, can't be nativist. Economically, that is, it can't be argued that ownership in the corporation by Nguyen is any less important than Johnson, all things being equal.
It'd be pretty hard to effect, however, in countries whose economies are state run. Again, perhaps something could have been done about that, but it would have had to start in 1975, rather than 2025. Trump's policies, which don't fit this mold, are coming all at once, and fifty years too late. That might suggest, of course, that something could be done, but it would have to be done gradually.
If nothing else, however, Trump and his spastic policies might serve to give Distributism a little voice. Corporate Capitalism resulted in the situation Trump seeks to address. There's no reason to believe Corporate Capitalism is going to get us out of it. Distributists have been warning about capitalisms long term impacts for years. Socialism has demonstrated what its were, and that's what killed it.
Perhaps the Distributist Lament can get a little more heard.
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Yep, that's right. In central Wyoming you are limited to one carton as people are trying to stock up to avoid coming price increases.
Yessir, Trump was really successful on that price lowering thing.
Strange bedfellows.
Politics, as they say, makes for strange bedfellows.
Be careful what you wish for, lest it come true!
Aesop.
Washington, DC – Today, Congresswoman Harriet Hageman voted in favor of H.R. 9494 - Continuing Appropriations and Other Matters Act, 2025 (CR) that would keep the federal government open through March 28, 2025 and include the SAVE Act. The SAVE Act, cosponsored by Rep. Hageman and passed earlier this year by the House of Representatives with bipartisan support, would require states to obtain proof of citizenship—in person—when registering an individual to vote and require states to remove non-citizens from existing voter rolls. The bill failed 220-202.Representative Hageman stated, “Safeguarding our election process is critically important, especially with the open border policies of the Biden-Harris administration that have allowed over 11 million illegals to enter our country. By including the SAVE Act with government funding and extending the funding into 2025, when Republicans have a strong chance of controlling the House, Senate, and White House, America wins. We will be able to craft responsible appropriations bills that slash wasteful spending, stop the current administration’s radical climate agenda, and eliminate woke DEI programs from federal agencies – at the same time, we can ensure that only American citizens vote in federal elections.
“I am disappointed that the House was unable to pass H.R. 9494 today. While Continuing Resolutions are never ideal, securing our elections and creating an opportunity to pass conservative spending bills in 2025 created a unique opportunity. I will not support a CR that fails to include the SAVE Act.”
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And quite frankly, there are going to be more to come.
The Elk Fire near Dayton and Sheridan is now up to 75,000 and is only 10% contained as of this morning. A forest fire broke out in this county yesterday afternoon.*
These fires aren't stopping until it snows, and daily temperatures are freakishly high for October.
Let's discuss subsidiarity.
Subsidiarity on this site is defined in the Catholic sense. It is an organizing principle that things (problems, matters, politics, economics) ought to be handled by the smallest, lowest or least centralized competent authority.
Least centralized competent authority, not the least centralized authority.
The most centralized competent authority can indeed be the Federal government for large disasters, particularly multistate disasters, and ones which require large sums of money that cannot be locally obtained.
That latter is particularly the case for Wyoming.
We can't afford these disasters on our own. We can't afford to fight them. We can't address what they destroy.
Wyomingites are on social media right now complaining that the country is ignoring us. Well, attention works two ways.
This upcoming 2025 Legislature is likely to see the House controlled by the "Wyoming" Freedom Caucus. The "Wyoming" Freedom Caucus basically wants to give the Federal Government the middle finger salute. But nobody in the state wants to tell Washington "no thanks, you keep your FEMA, Highway, FAA money, we'll do it on our own".
There's a word for lashing out when you don't get what you want, and see yourself as the center of things.
A tantrum, angry outburst, temper tantrum, lash out, meltdown, fit, or hissy fit is an emotional outburst, usually associated with those in emotional distress. It is typically characterized by stubbornness, crying, screaming, violence, defiance, angry ranting, a resistance to attempts at pacification, and, in some cases, hitting and other physically violent behavior. Physical control may be lost; the person may be unable to remain still; and even if the "goal" of the person is met, they may not be calmed. Throwing a temper tantrum can lead to a child getting detention or being suspended from school for older school age children, and can result in a timeout or grounding, complete with room or corner time, at home. A tantrum may be expressed in a tirade: a protracted, angry speech.
Wikipedia.
“Be careful what you wish for, lest it come true!”, Aesop counseled, and for a reason. And Sappho counseled "don't bite the hand that feeds you".
And, of course:
Pride goes before disaster, and a haughty spirit before a fall.
Proverbs 16:18.
We've been pretty proud here recently.
Footnotes:
*A message from the Game and Fish:
Sheridan – The Wyoming Game and Fish Department advises hunters that the Elk Fire in Sheridan County continues to grow, impacting wildlife habitat and access to certain hunt areas.
Hunt areas impacted by the fire or associated public access closures are currently located within Elk Hunt Areas 37 and 38 and Deer Hunt Areas 24 and 25. This is an active fire situation and these areas may change. Game and Fish is maintaining a fire information page for hunters and updating it regularly.
As of Oct. 5, 2024, the following Access Yes areas have been closed until further notice:
- PK Lane Hunter Management Area.
Sheridan County Walk in Areas #8 and #12.
Game and Fish personnel are assisting public safety officials and fire suppression efforts as requested.
Personnel will assess impacts to Commission-owned properties and wildlife habitat when it is safe to do so.
Members of the public should be extra vigilant in watching for wildlife on roadways to avoid collisions, as animals may relocate to new areas where they usually aren’t expected.
Wildlife are generally adept at moving away from wildfires and the department has not received reports of injured animals at this time. Members of the public who see an injured animal can report the location to the Stop Poaching Hotline at 1-877-WGFD-TIP. The hotline operates 24 hours a day and reports are sent to the nearest wildlife manager to respond.
Hunters should consult the Bighorn National Forest website and Facebook page for the most current information on fire conditions and public access closures.
Other resources for information about the fire, current road closures and other impacts include the Sheridan County Emergency Management Department and Wyoming Department of Transportation.
Hunters can call the Sheridan Regional Office at 307-672-7418 for more information.
2020s, 2024, Aesop, Disaster, Donald Trump, Government, Politics, Populism, Sic transit Gloria Mundi, Subsidiarity, The Wyoming Fires of 2024, Weather, Wyoming, Wyoming Freedom Caucus
