Farewell, Fugazy!
That ruckus you hear in the capital markets is the sickening howl of the Fugazy Economy meeting its extinction. Fugazy means fake, unreal, dishonest, misaligned to what societies need to thrive. Fugazy means mis-using the time-value of things that purport to be wealth to multiply fake wealth in the hands of a few at the expense of the many. The pernicious effects of that system are visible all across the ruined landscape of our country, a nation of broken cities, failed towns, and a demoralized populace.
Mr. Trump apparently aims to convert the expiring Fugazy economy into a production economy — yikes! — based on making things of value, and perhaps more importantly, of people at all social levels having meaningful roles in the making and moving of things. The Trump tariffs are the first big step in a process that is already generating a whole lot of friction, heat, and ferment. The aim of the tariffs is straightforward: the end of a trade regime that punishes and cripples American production.
The response so far is heartening. Many other countries suddenly seek new trade arrangements with the USA, correctly sensing that Mr. Trump means bidness. (This ain’t no Mud Club. . . this ain’t no foolin’ around. . . .) It’s even possible that these readjustments will happen so swiftly that the tariff differentials will be a wash before summer, and everybody will be, at least, on a firm footing, knowing what the clear new rules say. This new disposition of things required forceful incentives to change entrenched, harmful practices.
Another angle on this process is the dynamic known as import-replacement. It means exactly what it sounds like: where you used to get stuff from other lands, you now make it here. It should be obvious that this can’t be accomplished overnight. But the question is: okay, when are you going to start? Part of the answer is: we can’t afford to put it off any longer. There’s an awful lot of stuff, from machine too
Article from LewRockwell
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.
