Economics 101: Why the Smug Are Always Wrong About Tariffs
You might have noticed the people who can’t stand Trump’s tariffs. They talk like putting American jobs and factories first is some kind of backward idea. But to really understand where they’re coming from, you have to look at two very different views of the economy, one rooted in old-school Marxist thinking, repackaged for modern times, and the other based on real-world reality: hard work, production, and national strength. One trusts government control and global dependence. The other trusts the American worker and the power of local industry. Let’s break it down.
Keynesian vs. Supply-Side Economics (in plain English):
Keynesian Economics (named after John Maynard Keynes) says the government should step in and spend a lot of money, especially during a recession, to “boost” the economy. Think of it like this: if the economy is slowing down, the government should spend more or hand out stimulus checks to get people buying again. More demand = more jobs (in theory). Keynesians believe the economy runs best when there's more spending, even if the government has to go into debt to make it happen.
Supply-Side Economics (think Reagan, Milton Friedman, and MAGA-style economics) says the economy grows when you cut taxes, cut regulation, and let businesses and workers keep more of what they earn. Instead of pumping demand through government spending, supply-siders want to unleash production, more goods, more jobs, more investment. The idea is: make it easier to produce, and the whole economy rises.
So why do Keynesians hate Trump’s tariffs?
Because Trump’s tariffs don’t fit the Keynesian playbook. Tariffs are meant to shift the economy back toward production, to rebuild American factories and create jobs here. That’s supply-side thinking.
Keynesian types and their cheerleaders like Ben Shapiro, the Lincoln Project crowd, and failed Never Trumpers like Bill Kristol, love free trade at any cost. They worship cheap imports because it keeps prices low and fuels spending. They don’t care where things are made; as long as Americans are buying, they think the economy’s winning. Even if that means our factories close and our workers get left behind, they’ll still call it “good demand.”
Tariffs mess with that flow. They raise prices on imports and push production back home. Keynesians call that “inefficient.” But supply-siders, and America First thinkers, say it’s worth it to protect our industries, rebuild our workforce, and stop sending all our money overseas.
So in the end...
Keynesians want more spending, even if it means more debt and more imports.
Supply-siders want more making, more working, and more local control.
And that’s why Trump’s tariffs drive the Keynesians nuts.