Trump Bites the Hand that Feeds Us
On his Sunday night broadcast, Peter dove into the fallout from President Trump’s tariff policy, which surprised markets on Friday. Peter explores everything from foreign exchange moves to the tariffs’ impacts on everyday American consumers, using analogies to illustrate how these policies could unravel the American economy.
Peter starts by outlining the global reverberations of these actions, focusing especially on financial markets:
Look at the reaction around the world. First of all, the stock markets are getting clobbered. The Dow is off close to 600 points, 580 points right now. That’s 1.3%. NASDAQ down a bigger percent, about 2.4%. Hardest hit – Russell 2000, U.S. small caps– they’re down 3.4%. But the big story really I think is in the foreign exchange markets where the dollar is up across the board. The dollar index is up maybe 1.3%, 1.4%. The Euro is down 1.4%.
Drawing on hist past economic work, Peter revisits an analogy to explain trade imbalances and the beauty of comparative advantage:
I had two farmers. One was growing apples and the other one grows oranges. Now, at the end of the harvest, right, because both farmers want to eat apples and oranges, but one farmer’s got a parcel o
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LewRockwell.com is a libertarian website that publishes articles, essays, and blog posts advocating for minimal government, free markets, and individual liberty. The site was founded by Lew Rockwell, an American libertarian political commentator, activist, and former congressional staffer. The website often features content that is critical of mainstream politics, state intervention, and foreign policy, among other topics. It is a platform frequently used to disseminate Austrian economics, a school of economic thought that is popular among some libertarians.
