this post was submitted on 23 May 2025
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So they want to disincentive direct foreign investment now? Can someone explain to me under what set of assumptions this makes economic sense?
Autarky.
That's the four dollar word for when a nation closes off all forms of outside trade and supplies all its own needs internally.
It doesn't work.
And it's a core tenet of fascism.
The reason why autarky appeals is because an autarkic nation can freely engage in hostilities with anyone they want to, without fear, because they don't depend on anyone else for anything. See Nazi Germany.
It's an incredibly stupid notion. While unrestricted free trade is not by any means good, some amount of trade is simply far more effective and efficient than trying to be an island. And trade is an excellent means of extending soft power.
Trump hates soft power. He doesn't understand it, so it's bad. To him, hard power is the only thing that matters. Being the biggest, the strongest, the toughest. It's the politics of a bully. He wants an army with a nation attached, endlessly manufacturing weapons, food and medicine to supply the troops as they goose-step across the world.
The amount of soft power he's thrown away while describing it all as a "bad deal" and "getting screwed" is astounding. Like.... the U.S. established the world order almost unilaterally, and it's remained mostly steady for decades. You're just the first president dumb enough to not understand it.
Whatever, it's probably best for almost everyone else in the world to renegotiate those terms, thanks for forcing the issue. Well, except that it seems China is the one brokering the new world order to its favour while Trump parades around like a peacock.