Make America Great Depression

So here we are.

America is on the brink of a recession—perhaps even a brand spanking new Great Depression.

It’s not like we haven’t been here before. Protectionism has been tried in the past and failed spectacularly, exacerbating economic pain. Maybe you think the last time it was done incorrectly. Perhaps you believe it wasn’t a pure enough attempt. Or maybe you think it was simply due to the circumstances of the time, and that this time is different.

Whatever your view, we are all in this boat together. And now is not the time for “I told you so’s”—that can come later, once we’re in the trenches of Normandy. This is the time for solidarity. The market is crashing, and it doesn’t look like it’s slowing anytime soon.

If you voted MAGA, this is the bed you made for us to sleep in. No, this is not Joe Brandon’s fault. And no, the pain we’re all about to feel from this is absolutely not necessary—contrary to some populist's opinion.

Tariffs are a useful tool when used responsibly. But tariffs are not like whiskey. Especially in the age of neoliberalism, tariffs can be a way to protect a nation from foreign influence and market manipulation—but they must be surgical. Blanket tariffs should be avoided at all costs.

There is absolutely no way, for example, that Tesla can outcompete BYD in EVs, thanks to the cost of production in either country. China can simply build things at a lower cost while maintaining a high standard of quality. They are the manufacturing hub of the world, after all. We handed over our manufacturing processes and taught them how to roll the ball—training them up on the very products we designed. Combined with massive R&D investments in future tech, they’ve grown into a force to be reckoned with.

So, to combat Americans buying cheap overseas EVs and to keep the money in the country: tariff imports of BYD, and subsidize buying Tesla (ignoring the current and deserved downward trend Musk is experiencing).

To put it simply: tariffs, when swung around like Ron Jeremy’s dick, cause trade wars—and this benefits absolutely nobody. You end up with a world where trust is diminished, and nations retaliate with their own tariffs. This is the natural reaction to protectionism. If you make my imports more expensive for no reason, I’ll retaliate and do the same to yours. It’s a zero-sum game.

It’s probably worth mentioning for the uninitiated: tariffs are ultimately paid for by the consumer. Not by the exporter, but by the importer. The tax is collected by the nation enforcing the tariff, and that cost is inevitably passed on to the consumer, since importers will not—and should not—bear the brunt of it. Tariffs are a way to disincentivize international purchasing and support local businesses.

Even Ronald Reagan understood the dangers of a trade war and warned against it. It doesn’t take a rocket scientist to realize tariffs can deteriorate trust between allies and increase tension with adversaries—potentially causing a hot war alongside inevitable economic pain.

We live in a world where globalism is here to stay. The cat is out of the bag, and it ain’t going back in. Profit is king. Corporations will always offshore labor where they can to reduce costs and increase margins. This is capitalism. A public company has a responsibility to increase dividends for its investors—at almost any cost. There is no line, so long as it cultivates growth and increases profit. Companies will do what they can to keep the line going up.

To approach the problem of manufacturing in a constructive and less punitive manner—to bring it back home—you need the government to step in and invest in the nation. Few companies will do this of their own volition. This approach should be incremental: offer subsidies to incentivize building plants domestically, and, over time, introduce tariffs as a punitive measure for companies that don’t comply.

This is not a perfect solution either. Within our current economic framework, subsidies are unsustainable long-term and cost the government billions in investment. But if you’re a nation like China—a command economy under state capitalism—the government has the final say in most organizations. Wealth doesn’t have a chance to accumulate solely in the hands of the few. It can be reallocated however the regime chooses—toward infrastructure, social programs... or national surveillance (not that the West is much different here).

Quality of life is (currently) better in the West than in Eastern blocs. This means we demand more from our employers—higher pay, better working conditions, etc.—which in turn increases the cost of products made locally. And, as a consumer, you’ll almost always opt for the cheaper solution—unless you’ve got disposable income.

So, to make things cheaper and increase sales, Western companies offshore labor to Eastern countries—where the quality of life is lower, labor is cheaper, and worker protections are minimal. That’s what allows your first-world treats to be consumed at prices that would be impossible if those products were made locally.

Without going too far into the inherent exploitation that capitalism encourages (because this is exactly what it is: cheap consumer prices made possible by cheaper foreign labor), over time this results in a transfer of power. Manufacturing is part of what gives a nation strength. When you produce things in-house, it's both a national security asset and a convenience (though it comes at the cost of higher prices—or exploited labor. You cannot have it both ways).

China now enjoys the luxury of producing quality tech on their own soil at costs that would make an American green with envy.

While the U.S. still manufactures heavily in various sectors such as pharmaceuticals, it's primarily an importer nation. A company’s processes, IP, quality control, etc., are moved to places like China (or now India, as China becomes more expensive and its people demand a better standard of living). The product remains equal in quality—as long as companies don’t cheap out on materials—but it’s all under the jurisdiction of another government.

What the Trump regime is doing is suicide for the people of the nation. There will be no winners, except powerful individuals who can commandeer the ship and vacuum up the fallen scraps into their portfolios—consolidating into even more powerful entities and monopolies.

The administration says that the pain you’ll feel will make America stronger, and that you’ll be rich again (eventually). Not only is this false—these are the words of a conman—but it comes at a great cost: international trust will be destroyed. The world's trust in the U.S. dollar as a stable reserve currency is fraying. While it remains dominant on paper, the actions of this administration are accelerating moves toward alternatives—and every unilateral tariff and retaliatory shock drives another wedge between the U.S. and its trading partners. 

America will enjoy the repercussions of allied nations working against them to pull them back into line, that or the empire will eventually fall to their own isolationism and after serious conflicts kicking and screaming on the way down. There is very little chance that this idiocy will be useful as a bargaining chip to lower tariffs across the board from trade partners, and this does not seem to be the plan.

Remember: most (if not all) politicians seek power for their own means. You should never blindly trust a leader just because they say the words that resonate with you. It’s easy to fall for charm. You must—must—do your own due diligence and fight against your own biases. Challenge your ideals and the promises you’re being sold. Look outside what you think is right to try and prove yourself wrong. Perhaps you’ll be surprised. I know I constantly am.

Hey, maybe I’ll be wrong here too. Maybe one of the reasons in paragraph two turns out to be true. But as far as I can see, history rhymes—and it’s hard to see how this time will be any different (if not worse). We’re already at the point where $2.5 trillion was wiped off the stock market in one day, followed by $5 trillion the next. Those numbers were nuked in just two days—what took the Global Financial Crisis weeks to achieve. 

And this presidential cycle has only just begun.

Godspeed, comrades.