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Friday, February 7, 2025

Trump's Mistake

Everyone knew Trump was going to do tariffs and everyone knew Trump was going to lower taxes, but everyone expected him to cut taxes first and then do tariffs. Instead, he decided to do the tariffs first. That was a mistake. Why? In my blog post where I predicted a Trump win long before anyone else, I said that Trump would be elected for one reason and one reason alone: to lower prices. You lower prices by cutting taxes, and the argument for the tariffs was that the tariffs would fund the government once the taxes were gone. I know Trump and his "DOGE" are firing federal employees at a rapid pace to try to lower the government's costs, but he needed to do a massive tax cut before going all in on the tariffs. If he fails to lower prices, he will find that the Trump show will get a short leash from the American public, and every month that prices don't go down, that leash will get shorter. Don't forget that Trump won the popular vote by a narrow margin, and the Democrats haven't all just disappeared, although right now they're pretending that they have. If prices stay high, they will return. And I'm sure he knows this, too, it's just that he made a very questionable decision.