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On September 27th, 2024, at a rally in Michigan, Donald Trump said, "In the 1890s, our country was probably the wealthiest it ever was because it was a system of tariffs. We had a president, you know, McKinley.”
Though his base isn’t particularly fond of facts, history indicates that under William McKinley, banks failed, the unemployment rate was more than 10% for five years, and the McKinley Tariff Act of 1890 increased taxes on imported goods while eliminating taxes on luxury items for the wealthy. (Sound familiar?) As a result, the U.S. experienced an economic depression from 1893 to 1897. It’s also worth noting that in 1901 McKinley was assassinated six months into his second term of office.
During a recent press gaggle in the Oval Office, a reporter pointed out to the President that, “tariffs are paid eventually by American importers and consumers.”
To which Mr. Trump replied, “No, I think they are paid for by the country.”
While the President known for “The Art of the Deal” may not entirely grasp the concept of tariffs, somebody in his circle of influence certainly does.
The on-again off-again tariffs are, in fact, deliberate. They have nothing to do with fentanyl crossing our borders. Trump doesn't care about fentanyl. He pardoned Ross Ulbricht, who was sentenced to life in prison for running an online platform where drug dealers conducted more than $200 million in illegal narcotic sales.
When the president announces tariffs, the stock market takes a drop. That’s when the wealthy 1% swoop in and purchase massive amounts of stock. Then, when the president rolls back the tariffs, the stock market rebounds. As a result, the wealthy elite become even richer.
The same tactic will almost certainly be employed after screwing over our nation's farmers with tariffs. Canada is the number one consumer of the crops grown in the "Golden Belt." When our neighbors to the north stop buying American grain, our farmers won’t be able to afford to grow their crops anymore. That's when a member of the wealthy elite will purchase the land and sell it to a foreign government at a ridiculously expensive price.
Tariffs aren’t the only way the fat cats are embracing the so-called “Golden Age.” Cutting FEMA’s funding was likewise a deliberate act. When a natural disaster strikes, a property owner's insurance doesn't always provide enough reimbursement to cover the losses. As a result, the displaced property owner is forced to sell. That’s when a member of the wealthy 1% can once again swoop in and purchase the property for pennies on the dollar, then resell it for a higher price.
Similarly, permitting 280 million acres of federal public forests to be chopped down is part of the same game. The Chinese are the largest purchasers of American timber. With our national woodlands approved for sale, the uber wealthy can purchase the land and sell it to a foreign logging company at a higher price.
This is how an oligarchy works.
Ironically, the people who will suffer most under this regime are the very individuals who voted for the current president and his Congressional minions. Every move Mr. Trump makes, every cut he authorizes, is a deliberate attack on our nation's economy. Why do you think tech billionaires were seated in the front row at his inauguration?
Tariffs, mass deportations, and the termination of federal employees are all tactics rooted in a sinister desire for destabilization.
As Chris Rupkey, chief economist at FwdBonds, noted, "You can't have mass firings of federal workers and government contractors and think it is not going to mean job losses for the private sector. Jobs are headed in the minus direction if migrants are sent home."
Rupkey pointed out that the native-born US population continues to decrease, which means there are no Americans to take the jobs vacated by deported migrants. He continued, "Changing the pattern of migration from in to out means fewer workers to build houses, wash dishes in restaurants, and comfort your mother in hospice care."
The poor and the middle class are pawns in this dirty game of chess.
I cannot emphasize this enough: The notion that America’s “golden age” was a time of economic prosperity for all people is frankly nonsense. In fact, it was an era that gave way to the realization that the American dream of a land of opportunity for all people was a myth. It was a time of gross inequality: in wealth, in race, in religion, and in gender.