Interview with the American economic journalist and essays: “Watch out for Elon Musk. It’s like Russian oligarchs for Putin. The duties? They will make things worse instead of solving problems.”
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“People believe what they see.” The American economic journalist Alan Friedman is lapidary in his analysis of the American vote he crowned Donald Trump as the 47th president of the United States of America. Above all, he is analyzing why, despite 3% growth in the US economy, the voters of the Rust Belt – the rust belt including Wisconsin, Michigan and Pennsylvania, where the most most of American industry at times -. his back on the Democrats and the Biden administration.
And what do people see, Friedman?
People see that petrol costs more. He sees companies that no longer exist. You see that there are fewer and fewer jobs.
Are they wrong?
They are wrong to believe Trump. When Trump says Biden and Harris are to blame for inflation, people believe him. When he says Biden and Harris are to blame for raising interest rates, people believe him. These are all lies, of
Why do they believe it?
Because people don’t have the tools to understand economic theory. But they know who they are: they are victims of globalization. I’m the middle class guy who wants to pay less taxes. They are angry and looking for positive answers. And Trump was very skilled at giving those answers.
Among the answers are tariffs on exports. They are enough to restore wealth and social security to those poor classes…
We are not kidding. Trump never understood the mechanics of tariffs. He claims that the American government will have a lot of money with tariffs. In fact the duties are passed on to the price paid by consumers…
In fact, they will raise prices even more…
Yes, tariffs help with inflation. There has never been protectionism that did not increase inflation and decrease gross domestic product. It will happen this time too.
Tariffs on exports to the US could hurt us too…
I believe that Trump will make a strong trade war against China, but he will also threaten Europe. The tariff policy could have an impact on European and Italian exports.
And what does this mean for us?
Decrease in exports, employment and growth in gross domestic product.
Is this the only problem Trump could cause us?
No, I see at least two more. The first: because by supporting autocrats like his friends Putin and Orban he undermines Western democratic values. The second: because it will give Netanyahu carte blanche.
Speaking of Trump’s friends: what do you think of Elon Musk?
Elon Musk is a very controversial person. Many speak of him as a genius for Tesla and SpaceX, but today he is a fascist and pro-Putin tycoon. With Trump, his dark and problematic activities will only increase. Musk wants power and contracts. Now NASA is relying on Musk’s rockets and Musk is able to blackmail America.
There’s also a fair amount of conflict of interest, isn’t there?
His conflict of interest is as big as a house: a billionaire tycoon who becomes Trump’s Raspuntin is a tragedy, a nightmare. Musk is to Trump what the Russian oligarchs are to Putin.
You recently published a book entitled “The Decline of the American Empire”.
America’s decline is not solely Trump’s fault, but lies with decades of foreign policy mistakes. The bush wars, Obama’s mismanagement of the Arab Spring, the pro-Putin isolation of the first Trump, the withdrawal from Afghanistan and the geopolitical impotence of Biden. Now there are huge global challenges, and America is at the center, able to manage them. Today the big countries from Russia to China, from Arabia to Brazil are looking around and trying to play a game independent of the USA. Internal divisions within the US will exacerbate this process.
How do you think Trump will affect this decline?
Trump will withdraw the US from many multilateral tables and continue on the path of isolationism. And if America quits and withdraws, it will do enormous damage to itself as a world leader. Other than “great again”.
Title: Navigating the Future: An In-Depth Interview with Economic Journalist Alan Friedman
Editor (Time.news): Today, we are thrilled to welcome Alan Friedman, an accomplished American economic journalist known for his incisive analyses. Alan, thank you for joining us.
Alan Friedman: Thank you for having me. It’s a pleasure to be here.
Editor: The recent election of Donald Trump as the 47th president has raised eyebrows all around the world. Your take on the economic landscape, particularly in the Rust Belt, has been particularly striking. Why do you think voters have pivoted away from the Democrats despite a 3% growth in the U.S. economy?
Friedman: It’s quite simple, really. People are influenced by what they see in their daily lives. For many, they are faced with rising gasoline prices, the decline of local industries, and a shrinking job market. Those tangible experiences shape their beliefs and decisions at the polls.
Editor: You mentioned that despite their frustrations, people are misled when they place the blame for inflation and rising interest rates on the Biden administration. Can you elaborate on how that misinformation is so pervasive?
Friedman: Absolutely. The issue lies in the lack of understanding of economic theories among the average voter. Many individuals feel like victims of globalization. They want to pay less in taxes and are keen on hearing straightforward, reassuring answers. Trump has been exceptionally skilled at providing those answers, albeit often rooted in misinformation.
Editor: You’ve talked about tariffs as a potential solution and some of Trump’s proposed policies. You suggest they’re not the answer people think they are. Why is that?
Friedman: Yes, tariffs can be a seductive topic for politicians. Trump believes they can restore wealth and social security for the working class; however, he’s fundamentally misunderstood their mechanics. Tariffs will ultimately be passed on to consumers as higher prices, exacerbating inflation rather than alleviating it.
Editor: So, it’s safe to say that protectionist policies often backfire?
Friedman: Exactly. There has never been a case of protectionism that didn’t increase inflation and decrease GDP. It’s a tough cycle that creates further economic pain for consumers.
Editor: What are the broader implications of Trump’s trade policies? You mentioned a potential trade war with China and repercussions for European exports. Can you outline that for us?
Friedman: Sure. If Trump implements aggressive tariffs, it could lead to a reduction in exports from countries in Europe and beyond, which would in turn hurt employment rates and economic growth. The interconnected nature of the global economy means that these actions have far-reaching consequences.
Editor: Moving beyond trade, you highlighted two significant issues stemming from Trump’s presidency: undermining democratic values and supporting autocratic regimes. Could you elaborate on that?
Friedman: Yes, it’s twofold. First, his support for leaders like Putin and Orban weakens the principles of democracy that the West stands upon. Secondly, his strong alignment with figures like Netanyahu could lead to unregulated policies that further complicate international relations, particularly in the Middle East.
Editor: Speaking of controversial figures, what are your thoughts on Elon Musk and his rising influence, especially regarding his political connections?
Friedman: Musk is indeed a complex character. While many celebrate his success at Tesla and SpaceX, I find his recent political tendencies concerning. He exhibits authoritarian tendencies, aligning himself more with autocrats than the democratic norms that we uphold. His influence, especially if unchecked, could be detrimental.
Editor: You’ve made some bold statements today, Alan. How do you foresee these economic and political dilemmas unfolding in the next few years?
Friedman: I anticipate a tumultuous period ahead. If the current trajectory continues, we may see heightened tensions not only economically, through tariffs and trade wars but also politically, as populism grows. It’s essential for citizens to seek out the truth amid the noise and recognize the underlying economic realities.
Editor: Thank you, Alan, for your insightful perspective on these pressing issues. It’s crucial for our audience to stay informed and critically engaged with these developments.
Friedman: Thank you for having me. It’s been a pleasure to share my thoughts. Let’s hope for a future where informed choices can pave the way for better leadership.