The Economy We Deserve?

Tariffs won't fix our broken economy.

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There is a wide gap between the economy we have and the economy we deserve.

The economy we have is the product of decades of open markets and free trade, core components of “neoliberalism” and drivers of globalization. It pushed forward profit maximization—not security or social mobility—above all else. So, no surprise that American companies began to move production offshore, to places like China, Taiwan, and South Korea. There, things would be made cheaper—and America would transform into a consumption-driven society. Wealth went from worth to possession.

As we shopped and shopped, stocks soared and soared. Investing, as venture capitalists or through hedge funds, became all the rage. Focused on innovation instead of widgets, Silicon Valley gave birth to Facebook, Amazon, Uber, Zappos and Airbnb—companies that struggled to generate revenue but were valued in the billions; companies that managed to upend traditional industries, including publishing, retail and service industries, the very ones that the US economy was supposedly moving towards, such as transportation and hospitality. It killed more jobs and, yes, widened the trade deficit. The alarm bells on that rang hollow until Donald Trump.

The trade deficit! It’s terrible! It’s proof of how other countries are taking advantage of America! Trump zeroed in on a problem—but talked deficits instead of jobs. His fix: cut government spending, cut taxes, fire the experts, attack higher education, and levy tariffs, according to whatever ChatGPT churns out—and then pause them when the billionaires come crying.

Honestly, I don’t understand Trump’s obsession with the deficit or what he’s doing overall. And it would probably take a book to really analyze. I’ll stick to the flavor of the day: deficits.

While jobs are not his main focus, Trump throws around the fantasy of “bringing jobs back” as a defense for unleashing tariffs. Back from where? The jobs that went overseas are more likely to be replaced with robots before people. The monied set is betting our future on artificial intelligence and robotics, not factory assembly lines. And no company is going to choose a high-cost, high-healthcare-burdened workforce when a machine is cheaper and doesn’t need time off.

Meanwhile, China isn’t blinking. It has levied 84 percent tariffs on the US, even though we don’t sell all that much to them. But what they are doing is what Heather Hurlburt and others have pointed out is essential for industrial strength: investing heavily in infrastructure. You can’t be a manufacturing powerhouse if you can’t move goods and sustain communities. That’s not merely financing roads and broadband, but focusing on affordable housing, childcare, and healthcare. Breaking news: industry doesn’t thrive in a vacuum.

Nor do families. Trump has thrown his lot with Elon Musk and the pro-natalists who are keen on boosting white babies. It’s why he’s extending white South Africans refugee status, while taking it away from South Sudan where there is a war. Here’s the thing: With the high living costs, climate anxiety, and economic instability younger Americans aren’t rushing to procreate. Sorry Evie. (Also, those milkmaid dresses are ick.)

They also, while eager, are struggling to buy homes. The idea of a stable, upwardly mobile future — once the core promise of American life — is harder to see. That’s not just a personal issue. It’s an economic one.

If Trump really wants to champion the working class, why not talk about capping CEO pay? Or regulating board compensation? Manufacturing in the US isn’t going to mean anything for workers so long as corporate boards continue to focus on profits, specifically theirs. Real populism would look like redistribution, not culture war cosplay.

Yet, cosplay is what we have—political theater. Tariffs are merely smoke and mirrors that avoid tackling the serious challenge of affordability, security, and access to healthcare and education to get us to the economy we deserve.

The economy we deserve is one where the goal is to maximize prosperity, not for some but all. Where small businesses can thrive and people don’t struggle to make ends meet, with two or three jobs. Where social mobility is possible again, so that the working class can attain wealth, not merely HDTVs.

There will never be a perfect economy. But there’s no excuse for one that works this badly for so many. The real threat isn’t foreign-made TVs or foreigners themselves. It’s an American system rigged for spectacle, for show, for the few. And until we stop falling for cosplay populism, that’s exactly what we’ll keep getting. We can build an economy that spreads the wealth, invests in communities through education or infrastructure, and holds the ultra rich to account. That’s not a radical idea. In fact, it’s one that is inherently American. — Elmira

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Elsewhere in the World.....

On our radar...

Tariffs and trade wars

• The China-US trade war is ON. It doesn’t appear that either side is willing to back down, with Washington imposing a 125 percent levy on Chinese goods and China imposing 84 percent on American ones.That’s different from the first Trump administration, when China was willing to negotiate with the US president. Simone McCarthy explains why Beijing is standing firm this time. (CNN)

• But if Beijing wants to win the trade war against the US, Lizzi Lee says that it must “flip the script” on Trump. That includes building partnerships and norms, essentially becoming the guardian of free trade. (Foreign Policy)

Dealing with Iran

On Monday, Trump met with Israeli Prime Minister Benjamin Netanyahu in Washington. In the Oval Office, the US president stunned everyone, including Netanyahu, when he announced that his team would meet with Iran over the weekend to work out an agreement over Iran’s nuclear program.

Tia Goldenberg has a great readout of Netanyahu’s visit, in which she points out he left empty handed. No clear indication he’ll get what he wants re: Iran, no relief of US tariffs on Israel, and was told to be reasonable regarding Turkey’s role in Syria. (AP)

Yes, I did snicker reading that. It might have even been a snort.

In his first term, Trump tore up the Joint Comprehensive Plan of Action (JCPOA), aka the Iran nuclear deal, that Obama had reached with Tehran. Iran had vowed to give up nuclear enrichment, in exchange for lifting of sanctions. Trump is eager to broker some sort of deal with Tehran, especially since he has failed to end the Russia Ukraine and Israel-Hamas wars.

Can Trump convince Iran to give up its nuclear program? Not entirely, say Katherine Wells, Alexandra Braverman, Ria Reddy, Kelley Campa, Johanna Moore, and some guys. While the blow to Hamas and Hezbollah, along with Assad’s demise in Syria, has left Tehran weaker, it is not alone. China imports Iranian oil and, along with Russia, is unlikely to leave Iran isolated. (Institute for the Study of War)

Africa

South Sudan is the world’s youngest country. It established independence in 2011 and then went on to fight a civil war, which ended in 2018. But as noted last week, it was a precarious peace that has recently come undone. There is a way to prevent bloodshed, writes Rosalind Marsden. But that depends on the international community bringing the two sides together, which is not something the UAE and Uganda are interested in doing. (Chatham House)

What does the UAE have to do with South Sudan? A lot. The country has been supporting South Sudanese president, Salva Kiir. who it would want to see prevail in a showdown with opposition leader Riek Machar. There’s also what’s happening in Sudan, in the north, which has been locked in a civil war. The UAE has been supporting the rebel Rapid Support Forces against the Sudanese military. This week, Sudan filed a case with the International Court of Justice accusing the Gulf country of genocide, writes Rayhan Uddin. (Middle East Eye)

Adding to South Sudan’s troubles, the Trump administration has cancelled visas for South Sudanese nationals.

Asia

In South Korea, the constitutional court ruled to oust Yoon Suk Yeol for his overnight martial law declaration at the end of last year and bar him from holding office again. That means that South Koreans will vote for a new leader, which has been scheduled for June 3. Sweta Sharma details the potential candidates. (The Independent)

The Americas

40 years ago, a military dictatorship gave up power in Brazil. And while Brazilians prefer democracy, the country has struggled to provide justice and reparations to the victims of the junta’s human rights abuses, writes. Laura Chaparro. (Global Voices)

Europe

As mentioned last week, Finland has withdrawn from the Ottawa Convention, which bans anti-personnel landmines. It’s part of a larger trend in Europe of withdrawing from disarmament treaties in order to bolster defense capabilities—namely, against Russia. But doing so is handing Moscow a win, writes Filipa Schmitz Guinote. (ECFR)

50 years ago, Franco, Spain’s ruthless dictator, died. His 36-year rule included executions, jailings, and censorship. Yet, as Alana Moceri notes, younger Spaniards seem to be nostalgic for this strongman that their grandparents would be quick to reject. (World Politics Review)

Sigh. Youth is wasted on the young.

Technology

Listen: Central to DOGE’s slash and burn approach to government cuts is AI. Rebecca Williams and Emily Tavoulareas join in this conversation that looks at the history of technology in government and what comes next. (Tech Policy Press)

Science & Climate Change

At the end of March, the Trump administration released the Annual Threat Assessment—a list of the biggest threats facing the US. Climate change has been on this list for years, but was nowhere to be seen in the most current one. Erin Sikorsky, Anna Hickey, and Jen Patija on the omission. (Lawfare Podcast)

Under the Radar

The dire wolf has been brought back to life! Or has it. Helen Pilcher says that the claims that this extinct species has been revived is exaggerated. But that shouldn’t take away from the scientific breakthrough that it represents. (The Guardian)

And the second episode of Power Shift is out! Listen to Lina Srivastava talk to Nadine Saba and Michael Köhler about the potential to reform the global humanitarian system amid enormous cuts—and if reform is enough. (Power Shift)

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Opportunities

The Climate Solutions Fund is hiring for a Managing Director.

At Brookings, there’s a spot open for a Senior Director of Digital Media.

The Carnegie Endowment for International Peace has posted a position for a Research Scholar in the American Statecraft Program.

Human Rights Watch is hiring a Program Director.

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Editorial Team

Elmira Bayrasli - Editor-in-Chief