Donald Trump promised to Make America Great Again. Instead, he is wrecking the US economy. Job creation has collapsed, farmers can't sell their crops, foreign investors are leaving, and tariffs are pushing up prices for ordinary Americans.
In this video, I explain why Trump's economic policies are a disaster — and why the UK should take note as the far-right tries to copy them.
This is the audio version:
This is the transcript:
I am going to try to be as polite as I can in the sentence that follows this one.
Trump is really messing up the US economy.
We're not talking about just a little bit going wrong now. We are talking about a total and utter flipping disaster.
That's how badly things are going in the USA, and there's no point in Trump trying to pretend anymore that this has anything to do with Biden. It hasn't. It has everything to do with Trump.
No new jobs are being created in the USA.
Last month, it was thought that 20,000 jobs were created in the single month, a record low for a long period of time. The US normally adds a quarter of a million new jobs a month. This figure is staggeringly small.
The slowdown is very real. And we know that the figures for job growth over the last year have been restated, including some of Biden's period, and I accept that. But this is still exceptional.
And there are other signs of things going really horribly wrong.
Look at what happened with regard to Hyundai. They were doing inward investment into the USA to build a plant in the country to overcome the tariff problem that Trump was creating. And then ICE, the customs people, turned up, and they arrested around 450 Korean nationals working at that plant to establish the technology that will be needed to make Hyundai cars in America. And guess what? South Koreans aren't too pleased about discovering that when they go to the States to do what the States wants them to do, which is to build a plant in that country, they get arrested for being illegal immigrants. Which they almost certainly weren't. This is how to destroy inward investment into the USA.
And there's another thing to talk about as well. Those tariffs that Donald Trump has been putting on everything into the USA have given rise, of course, to tariffs the other way. In particular, between the USA and China. And I predicted earlier this year that there would be a massive backlash and consequence as a result, particularly in the Midwest farming districts of the USA, which are above all else the areas where Donald Trump gets his support for the MAGA - Make America Great Again - movement. And it's happened.
One of the biggest crops that is grown in Midwest America is soybeans. And the biggest market for Midwest American soybeans is not in America. It is in China, they love soybeans. And right now, there are no orders for Midwest farmers from China.
It's as if China has said, "Blow you, Mr. Trump, we aren't interested in buying your product anymore because you are playing silly games. And so we will take countermeasures. That won't just be a tariff. It will be a simple block on buying your products."
And that is what has happened. There are 900,000 soybean farmers apparently in the USA, and none of them has an order from China. This is going to be catastrophic for the economy of Midwest America.
It's going to be catastrophic for the MAGA supporters in that area.
It's going to be catastrophic for everybody else in those areas because if the farmers aren't spending, and they bring in most of the money into the economies of the Midwest states, then no one else is going to be spending either.
Trump has disasters on his hands.
A disaster of a slowing economy.
A disaster of an economy where he's fighting the Fed.
A disaster where interest rates are rising because of fear of what he's trying to do and the consequences for the dollar.
A disaster on his hands with regard to inward investment.
And now a disaster on his hands with regard to exports.
These are multiple whammies coming in all directions at what is happening in the USA, and there is only one explanation for them all, and that is the failure of Donald Trump to comprehend what is going on inside the economy of the country that he is trying to govern.
He's not 'Making America Great Again'. He's destroying the American economy as fast as it is possible for any human being on earth to do. And that human being was elected to be President of the States.
America is going to pay an enormous price for Trump. Sometime soon, America is going to realise that. The Midwest farmers already are. They're beginning to scream and holler, and shout and say, something's going horribly wrong here. And they are right to do so.
The South Koreans are already getting upset and won't be coming back to set up more factories.
America will be sitting in isolation with the higher prices that their tariffs will inevitably mean for the American consumer now that products won't be made at home, as Trump said they would be.
Everything is potentially going wrong for the US economy.
But don't just sit back and smile, because I'm not.
I'm sorry for ordinary Americans.
I'm sorry for those who were misled by Trump.
I'm sorry for those who thought he was really going to 'Make America Great Again' and for whom he's going to fail.
I'm sorry for everybody else in the world who's going to pay the price, for those South Koreans, for the Chinese who won't be getting the soybeans they want. For everybody who will see the knock-on effects of what Trump is doing.
This man is an outright disaster.
Far-right politics is an outright disaster.
We've always known that, but now we can see the evidence. And it's critical that we do see a note and talk about that evidence, because the threat from the far-right is real elsewhere, including here in the UK.
The far-right has no known answer to any known problem.
Its hatred of migrants solves nothing. We are living in an interdependent world, and to pretend otherwise is just absurd.
To pretend that we can live in glorious economic isolation is just absurd.
To pretend that we can run an economy on the basis of giving tax cuts to the rich, and increasing, in effect, taxes on everybody else by imposing tariffs is absurd because the net result is a lack of spending power.
And in the case of Midwest America, that lack of spending power is going to be very obvious.
And the people of the UK should take note because if you look at Reform, the only people that're interested in are bankers and the City of London. Everybody else in the UK, frankly, is ignored by reform.
We are going to see that policy that is being pursued by Trump, replicated by Reform in the UK, if they ever get near office. Lessons do therefore have to be learned, and the lesson is loud and clear. Trump is an absolute flipping disaster. And as I said at the outset, I'm trying to be as polite as I can here.
What do you think? Do you think Trump is going to work for America? Or do you think he's a massive threat to its well-being? Maybe you don't know? Maybe you need more information? Maybe you want to say something else? Let us know in the poll that's below and in the comments; we do appreciate them.
Poll
What lesson should the UK take from Trump’s economic disaster?
- Don’t trust far-right economics (60%, 321 Votes)
- Invest in cooperation, not isolation (35%, 189 Votes)
- Stop trade wars before they start (3%, 17 Votes)
- Protect jobs at all costs (2%, 9 Votes)
Total Voters: 536
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I feel really sorry for all those that have been got rid of from public institutions by Musk’s DOGE. Unlike the UK, once they’ve lost their job they’ve lost access to healthcare etc. And whilst our social security is poor theirs is almost non existent.
I dislike our current government intensely for pretending to be left wing, when in reality it’s just more right wing neoliberalism, but what we are currently experiencing is nothing compared to Trump’s America. But I’m not sure how much is making its way onto our MSM for people to see how awful it is and why we don’t want Farage anywhere near serious power. Zack Polanski is the first person I’ve seen successfully calling it out for what it really is. And I have real sympathy for those suffering and seeing Reform as a solution as none of the main parties is focusing on the working classes or offering them anything.
Let’s hope the outworking of Trump’s policies can e seen for what it is before our next election.
Trump is what you get when private money is allowed to dominate politics. Outspending opponents is not politics – it is monopoly behaviour.
But the other strange I saw in America amongst voters was just to be seen as part of a winning side – like a game or something. Winning was everything – what came after not much of a consideration.
Very good point – when I was in America the thinking was ‘2nd is nowhere, oblivion’
Which I always found a little unhealthy.
Another reason why PR and a proper representative democracy is vital. All arguments about ‘months without a proper government’ etc, while coalitions or whatever are sorted out, notwithstanding.
Sadly hate sells!
If Starmer had any nouse (which judging by recent events it doesn’t look like he has) – plodding bureaucrat rather than visionary – he’ll get out to Seoul and invite them to the UK to see if they’ll invest here instead
And what market can he offer to help them serve? He won’t go back into Europe. We are no better placed to serve the US market than South Korea itself. There is a substantial risk that Britain will be imploding from a Trump inspired government sucking its guts out in less time than it takes to build a factory, so not much hope of the domestic market being a big money spinner. I get the impression that Korea has a tradition of wise and clever men running big corporations, and they are not going to be tempted by what Brexit Britain can offer.
I feel sorry for the people who live outwith the US who are badly affected by Trump and his crazy, ill-thought through economic policies (though it’s doubtful much thought went into them since the guy’s brain is scrambled).
And those suffering in Palestine, Ukraine, those for whom US aid has been cut off – and the rest. The suffering must be immense in many parts of the world because of one elderly nutjob and his equally crazy cabinet etc.
But they voted for that guy TWICE. He could have been stopped in his tracks since insurrectionists and felons should be no where near the Oval Office. That they put him in power – again – is solely on the US public and their Electoral College.
They’ve got what they voted for. They will just have to suck it up until they’ve had enough and do something about the situation. The earliest that can happen is next year’s midterms.
So the world waits and suffers along with the US public. What an effin state we’re in that one man can destroy the world’s economic system in a few short months.
A pox on the USA.
You are right to blame the coming economic disasters on Trump, who we see clearly as a wanna regimeabe Putin or any other autocrat you might name. And yet, Trump is bameless in a platonic way because of his complete ignorance of economics. He wouldn’t recognise any topics appearing on an Economics 101 course because he’s never read or understood any of it. True, he was in business and has made money from time to time and lost it. He started with an inherited fortune and is now exceedingly wealthy via various dealings which are not transparent. You cannot run the world’s largest economy as if you were wheeling and dealing in the real estate business.
So, if not Trump, who is really to blame? Who is telling him to do these things which will lead to ruin? I presume these people have knowledge of the outcome of his missteps. Maybe they want the end of democracy in the USA and then replace it with a regime that is even more favourable to the wealthy than it is today. Aside from the economic mistakes, other Trump actions suggest he is trying to eliminate any opposition to his grab at total power for whoever is pulling the strings.
Trump does have some people behind him with economic credentials, most notably Stephen Miran. it would be quite interesting to know whether they support his tariff policies and other economic stunts they or are they holding their heads in the hands and moaning things like “When I recommended tariffs I didn’t mean like that”.
We have a special relationship with the US, long tradition of shared values, Starmer has a special bond with Trump, ….etc.etc.…….everyone knows the rest of the mantra that politicians sing day in day out. Everything will be on display soon when Trump visits UK on a state visit. The visit will give us a real context on why we need US ( per our politicians) and not other way round.
Lessons to be learnt :
– Don’t join US wars
– Recognize Palestine state
– Support talks not wars
– Collaborate with BRICS
– Tax US tech and put UK people first
UK should recognize and support a multipolar world. Collaborating with every country in the world is the way to ensure prosperity for all and not just the rich.
There seem to be increasingly frequent incidents that suggest Trump is actually losing mental capacity, had had a stroke or suchlike; not simply that he’s ignorant or wilfully malicious (but those as well).
So – like here with the time bomb of Starmer being ousted – who could be in charge in a year or so? J D Vance, obviously; but then who’s behind him? A British philosopher of the right, the new conservatives, on the outskirts of Cambridge, apparently?!?
I don’t think so.
Whoever it is will be closer to the control of Peter Thiel.
It’s tempting to attribute everything Trump does to incompetence, and call the result a “disaster” or a “mistake.” But at this point, it is very clear that while Trump himself may not be the brightest, he does have a cadre of intelligent, educated professionals behind him. The right didn’t co-opt all three branches of government on accident. It was intentionally done, and it was planned and executed (if not without the occasional hiccup).
So one must ask: why would anyone do this horrid stuff to the economy on purpose?
If you have the misfortune to encounter think tank papers on the economy and national security, you might encounter a relevant (or what I think is relevant) thread of thought: the notion that the US economic hegemony is declining, and will continue to decline. Obviously, this is a problem for the US and its oligarchs, especially if it (1) interferes with access to lucrative markets abroad (2) inhibits controls on foreign labor i.e. labor becomes too expensive (3) creates rivals, which might pose an existential threat. So what should the US do?
Naturally, the US might try more moderate solutions. But what if these don’t seem to work, or they don’t work as well as one might prefer? Well, I can’t claim to fathom the thinking process here, but for a moment, imagine if you were to pose this problem to a venture capitalist disruptor with an interest in maximizing short term gains. What solution do you suppose they might come up with?
I think we are seeing the answer in real time. And I think the architects of this plan knew their ideas would be politically unpopular.
What amazes me is this: there are going to be many, many losers in this economy, if it keeps going the way it is; and not all of them are poor and powerless. Why the devil are those people going along with this madness?
It is a madness that makes people go along with it.
I suppose.
My partner calls it CEO syndrome: everyone else is a sucker, except for me.
A failing USA with a vast military. Wounded tigers come to mind. It’s very unsettling (as a Victorian lady of a certain breeding might say).
I found Jeffrey Sachs’ analysis yesterday of how the world is changing and the USA’s empire falling, very interesting and pertinent.
https://m.youtube.com/watch?v=HK7JzXsHEck&fbclid=IwVERDUAMyxipleHRuA2FlbQIxMAABHlytoi6hnPV7FDniWl31byr0I5m6NoiPQmRh_aoGUhubgDVt1UTa6busfUS0_aem_7EmUIRHwM0bj8VfMMvUOSQ#bottom-sheet