The fundamentals of the economy are strong. So why is the Dow Jones down and fears of a recession up? Perhaps because President Trump is rocking the economic boat by threatening tariffs on historic trading partners, only to rescind them the same day; taking a chainsaw to government expenditures when he should be using a scalpel; and talking about structurally changing the U.S. economy. Will Trump’s disruptive approach to the international economy enrich Americans in the long run? Or are the tariffs, and the flip-flopping, going to backfire?
Michael Strain is the director of Economic Policy Studies and the Arthur F. Burns Scholar in Political Economy at the American Enterprise Institute. He is also the Professor of Practice at the McCourt School of Public Policy at Georgetown University, a research fellow with the IZA Institute of Labor Economics, a research affiliate with the Institute for Research on Poverty at the University of Wisconsin–Madison, and a member of the Aspen Economic Strategy Group. Dr. Strain also writes as a columnist for Project Syndicate.