The Madness in the Method: The self-defeating impact of Tariffs, "Chainsaw"-budget cuts and "Bringing back" Outsourced Jobs
A Paper by: Mariano Bernardez, Kaufman Center
What if the very policies meant to "Make America Great Again" in a second Trump term end up making everything more expensive, less competitive, and more unstable?
In 2025, Trump’s proposed economic policies—aggressive tariffs, deep budget cuts, and forced reshoring of outsourced jobs—aim to protect American industries, cut government spending, and bring jobs back home.
But will they actually work as intended?
Or will they backfire, making life harder for American businesses, workers, and consumers?
Will tariffs bring back jobs—or just raise prices and trigger a trade war?
Can broad, indiscriminate budget cuts reduce waste without damaging critical services, defense, and economic stability?
Will forcing jobs back to the U.S. strengthen the economy—or push companies to automate, raise costs, and hurt global competitiveness?
This paper dives into real-world economic data, historical examples, and insights from top economists like Larry Summers and Robert Rubin to reveal a pattern of self-defeating consequences.
Just like past protectionist policies and austerity cuts that had to be walked back, these new policies will likely cause inflation, job losses, supply chain chaos, and market volatility—forcing an inevitable reversal within a year.
For business leaders, investors, and policymakers, understanding these risks isn’t just an academic exercise—it’s a warning. How will these policies impact your industry, your investments, or your cost of living? And more importantly, can the U.S. economy withstand another round of “economic experiments” before the damage is too great to reverse?
Find out why the economic strategy of 2025 may end up undoing itself—and what that means for the future of American business and prosperity.
Comments