Does the Trump Economic Team have a plan? Or even a concept of a plan?
Krugman: We have no idea:
"... That’s not because the Trump team is keeping its plans closely held, nor is it because there are major factional fights. All the evidence suggests, instead, that Trump’s economic team still doesn’t have any plans, or even concepts of plans. All it has are some half-formulated thoughts about how to cater to Trump’s prejudices without doing massive economic damage.
Consider this report from
Bloomberg:
If you spend even a minute thinking about this proposal, you realize that it makes no sense. Phasing in, say, 25 percent tariffs over around 8 months would do almost nothing to mitigate their inflationary impact. Prices would almost surely shoot up as soon as the plan was announced! It would, in addition, induce a mad stampede to get imports in before the full tariffs go into effect — a sort of supply-chain version of the Oklahoma land rush, pictured at the top of this post.
So what’s going on here? I don’t think it’s sheer stupidity. What’s happening instead is that Trump’s economic “advisers” realize that tariffs would increase the cost of living, but don’t dare say that clearly when their boss is still posting stuff like this:
So Trump’s economic “advisers” are thrashing around in an effort to cater to Trump’s tariff obsession while somehow delaying or finessing the consequences. I use scare quotes around “advisers” because there’s no reason to believe that Trump will pay attention to advice that contradicts his prejudices. ..."
Or, why he still has no plan
paulkrugman.substack.com