What exactly is Trumponomics? Derek Thompson argues that it’s not about economics at all; rather, it’s about “creating pain and demanding tribute.” The president’s inconsistent mix of approaches—which, Thompson writes, are “deeply Reaganite and deeply anti-conservative; somewhat capitalist and frequently socialist”—include tax cuts and deregulation, along with moves that look more like state control, such as demanding revenue from Nvidia’s chip sales and retaining veto power over U.S. Steel.
The pattern, Thompson argues, is less an ideology than a method: declare an emergency, create pain with tariffs or threats, and then extract concessions. And this method often threatens the very goals that Donald Trump claims to be working toward: Although tariffs were supposed to revive U.S. manufacturing, “manufacturing output has declined every month since the tariffs were announced,” Thompson notes.
Trump “has never believed in the invisible hand,” Jonathan Chait wrote in April. The administration is replacing market rules with personal loyalty. Instead of letting competition decide winners and losers, companies succeed if they align with Trump and fail if they don’t. Today’s newsletter is about Trumponomics—and how this approach is reshaping the economy in unexpected ways.
