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The economic consequences of a mad king


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Off with their heads. “This is the sentence that is the queen of the heart, the incarnation of the monarchy capris Alice’s Adventurers in WonderlandAdores pronunciation. May he be recreational. The reality is not, of course. Throughout history, absolute rulers bring distress over their people and even their families. Their courts are the hotbed of psychophyse, fierceitism and corruption. This is the price of voluntary autocratic.

Above all, the story of English-speaking people, including the United States, signs this national volunteer power. It was a long and hard struggle Magna Carta In the exile of James II in 1215 and in 1689 in 1789 in the Bill of Rights Declaration in the early 17th century and Charles first was executed in 9491 who condemned this monarchy for executing the execution “An unlimited and oppressive forces to rule according to his will,” he thought to be guilty of properly.

Declaration of independence And The approval of the US Constitution There was more step of the war against absoluteness. Thus, there was also the US Civil War, which established this policy that no one should be allowed to have the perfect power over another person.

What is happening today in the United States is historic tihassic and global significance, because it is about whether the power will be tolerated on voluntary practice. No knowledge of the disaster of the twentieth century cannot be unknown about the significance of this issue.

The role of the court in determining the law with the rules of the law, the role of the court in determining the law and the role of the legislature in the legislature work both moral and practical goals. Only in this national state people can feel safe against the dictatorship. A government that ignores the limitations is oppression. As the commentator Andrew Sullivan Observed: “America is about legal authority. Trump is about raw power. America was established on the basis of a belief as a cause. Trump has accepted his own instinct.” We witness a Long -planned attack The Republic itself.

Line Chart of Share Market Index $ $ Terms, 21/1/2025 = 100 Share Markets Since Trump has returned to 'mutual' duty for 90 days

Our economic expenditure is also given an object lesson, which the rich and powerful Trump supporters have blindly ignored. I have mentioned such as Last June“Biden can be older. Thus, indeed they have proved.

The trade Wars that Trump launched is a demonstration of danger. Shockingly, the The foot “tariff tracker” List 25 Declaration of Significant Policy It has been attacking less than three months by the United States and countries. It records seven major trade principles from April 2 and 11. It included “mutual” tariffs in all countries on April 2, followed by the revenge cycle between the United States and China, after the market turmoil, they were reduced to 10 percent for 90 days.

The Line Chart Stock Market of the CBO VIX unstimmed index (US Equity Market) shows the restlessness of the Stock Market and last seen in the epidemic

We have also seen shares prices, high market instability and more annoyingly that the dollar falls even after the yield of the treasury has increased. It appeared as if the capital itself began to escape from the United States. It is not surprising that Trump jumps. When the world “tariffs”, he should know that foreigners had caught 8.5tn of US Treasury at the end 2024, Around a quarter of the total public debt oThe

The way Trump is conducting his trade war raises more concerns than the economy of security. Yes, the tariffs are bad policy equipment: they impose a powerful home-market bias on the production of tradable products and high taxes, and directly (via high prices of inputs)-raft.

Yet it is more serious than they are now being used. Tax taxThe In the decade of 19701, the Congress cutely gave the President the power to impose this tax, though fictional in response to the “emergency”. This is classic autocracy. Now, surprisingly, Trump is using this energy to create chaos. No one can sensitively believe that it will rebuild the United States. It will rather cripple the business, raise prices and slow the economy.

Avoiding this national chaos was one of the benefits of ending voluntary power. By the end of the 17th century, the British state was able to borrow a large amount of long -term and cheap. That was the result of confidence. It was one of the basis for the development of money in the 18th and 19th centuries. As a result, the industrial revolution and subsequently the rise of prosperity was a strong stimulus.

Unexpected autocratic waste, fear and broad uncertainty. They are enemies of prosperity. Trump’s continuous transferred trade war and destruction of the global trading system are currently displaying it.

Now the US is expected to reach a trade agreement with more than 5 countries within about 5 days. It’s ridiculous. Even if “deals” reaches, will they last? One must doubt. Can the traders plan a long -term investment in the chaos that see it? Business, above all, must think for years. With the party bureaucracy, Xi Jinping China now provides more estimates for business than the United States. It’s shocked. It is also scandalous. People who support Trump should know that he was completely released, he was obliged to sow.

Its religionStrongman“A perennial fool.

Martin.wolf@ft.com

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