Trump’s guiding star, Stephen Moore, was once considered ”Mr.supply-side economics”, now he’s riding the Trump train of nationalism, populism agrarianism”.
There is no good side of ”protectionism”, the very essence of which begets cronyism as special interests (basically union connected) seek to have their industry protected by an ever expansive big government. Who are the geniuses who are going to decide which business “benefits” and which one doesn’t? Which business will be on the receiving end? I’ll tell you, the ones with unions.
During the campaign Trump correctly tried to get the union workers’ vote, and to some extent succeeded. Unlike Reagan however, who sought to slash regulations and spearhead a move to end the EPA which was killing US jobs, as well as lift the boot heel off of the average businessman, Trump embarked upon a different path. He seeks to make trade deals (TTP/TTIP were disaster for a number of reasons) and tariffs the key feature in his economic policy.
Bad trade deals should be shunned, tariffs however, should only be used surgically, as Reagan did (due to political pressure). Across the board tariffs will endanger the economy (only need to look at the Hoover years), making goods for the consumer who both wants and need them, more expensive, and without ever really making any impact on the sales of domestic goods. The highly vaunted tariff on Japanese motorcycles in the 80’s during the Reagan years in order to help Harley Davidson sales, only amounted to a meagre 7%, but it did induce the Japanese giants to make plants in the US in order to compete in the market.
But that sword cuts both ways. While many believe that US businesses chase the cheap labor force abroad, in part true, it’s also true that tariffs in foreign countries force US manufacturers to move its plants abroad in order to compete in their markets. Over all, tariffs are bad, no matter where they’re implemented. What we need is more capitalism.
Stephen Moore: Good Bye, Reagan GOP; Hello, Trump Populist Party
Stephen Moore (AP Photo/Tom Williams)
Wednesday, 23 Nov 2016 08:42 PM
President-elect Donald Trump’s economic adviser reportedly shocked House GOP leaders at a recent closed-door meeting, telling the lawmakers they no longer belonged to the conservative party of Ronald Reagan.
Stephen Moore was invited to the Majority Whip meeting last week and advised them they were now all part of Trump’s populist working-class party, The Hill reported.
“For God’s sake, it’s Stephen Moore!” one unnamed source told The Hill about lawmakers’ reactions. “He’s the guy who started Club for Growth. He’s Mr. Supply Side economics.”
“I think it’s going to take them a little time to process what does this all mean,” the source added. “The vast majority of them were on the wrong side. They didn’t think this was going to happen.”
But Moore told The Hill he was only giving the lawmakers a reality check.
“Just as Reagan converted the GOP into a conservative party, Trump has converted the GOP into a populist working-class party,” Moore told The Hill on Wednesday.
“In some ways this will be good for conservatives and in other ways possibly frustrating.”
He added traveling in the Rust Belt states that supported Trump changed his view, too.
“It turned me more into a populist,” he said. “Having spent the last three or four months on the campaign trail, it opens your eyes to the everyday anxieties and financial stress people are facing.”
“I used to be unilateral free trader,” he added. “If somebody wants to sell something to us at less cost than we can produce here, then do it.