It’s Not the Economy, Stupid

What’s the point of these tariffs if just about every economist shares the same reaction as your portfolio? A down market and a slammed economy aren’t exactly political winners. Well, consider that the moves are less about economics and more about power. Senator Chris Murphy explains: “Those trying to understand the tariffs as economic policy are dangerously naive. No, the tariffs are a tool to collapse our democracy. A means to compel loyalty from every business that will need to petition Trump for relief … Now, one by one, every industry or company will need to pledge loyalty to Trump in order to get sanctions relief.”

+ MoJo: Trump’s Tariffs Give Him a New Way to Dole Out Reward and Punishment. “If Trump is willing to hurt the economy, he must be getting something he wants even more in return. That thing is power.”

+ Of course, that power can only be taken with the acquiescence of Congress. Josh Marshall: “Presidents have no power over tariffs. Full stop. It’s not like war powers or pardons. Trump can only do this because Congress gave Presidents this power, as I explained in the a post yesterday. Congress can take it back at any moment.” (Will they? You might be better off betting on stocks.)