McKinley or Lincoln? Tariffs vs. Greenbacks
President Trump has repeatedly expressed his admiration for Republican President William McKinley, highlighting his use of tariffs as a model for economic policy. But as critics note, Trump’s tariffs, which are intended to protect U.S. interests, have instead fueled a stock market nosedive, provoked tit-for-tat tariffs from key partners, risk a broader trade withdrawal, and could increase the federal debt by reducing GDP and tax income.
The federal debt has reached $36.2 trillion, the annual interest on it is $1.2 trillion, and the projected 2025 budget deficit is $1.9 trillion – meaning $1.9 trillion will be added to the debt this year. It’s an unsustainable debt bubble doomed to pop on its present trajectory.
The goal of Elon Musk’s DOGE (Department of Government Efficiency) is to reduce the deficit by reducing budget expenditures. But Musk now acknowledges that the DOGE team’s efforts will probably cut expenses by only $1 trillion, not the $2 trillion originally projected. That will leave a nearly $1 trillion deficit that will have to be covered by more borrowing, and the debt tsunami will continue to grow.
Rather than modeling the economy on McKinley, President Trump might do well to model it on our first Republican president, Abraham Lincoln, whose debt-free Greenbacks saved the country from a crippling war debt to British-backed bankers, and whose policies laid the foundation for national economic resilience in the coming decades. Just “printing the money” can be and has been done sustainably, by directing the new funds into generating new GDP,; and there are compelling historical examples of that approach. In fact it may be our only way out of the debt crisis. But first a look at the tariff issue.
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Free Trade, like the Free Market, is a myth. Both are manipulated by lawmakers corrupted by campaign investors looking for a rate of return on their investment, like every other investment they make
The problem lies not only with the 36 trillion debt bubble but also with a lack of government Credit. But first Trump needs to restore Glass-Steagall and cancel derivatives held in commercial banks. The commercial banking system must become free of Wall St and derivatives while simultaneous government directed Credit is aimed at building and modernizing U.S. economic infrastructure. Trump will not restore mfg without modernizing our collapsing infrastructure. Trump can show Americans he means business by getting the shovels in the ground, now. .