Former RNC Chairman Michael Steele has joined the chorus of critics rebuking Donald Trump's recent comments on tariffs, particularly his nostalgic reference to the economic policies of the 1890s under President William McKinley.
Trump, in a recent speech, praised McKinley's tariff strategy, suggesting it was instrumental in the U.S. becoming an 'incredibly affluent nation.' However, this assertion has been widely criticized by historians and economists who argue that McKinley's tariffs were highly unpopular and contributed to significant economic and political fallout.
Historical Context of McKinley's Tariffs
The McKinley tariff, enacted in 1890, significantly increased average duties on imports, rising from around 38% to 49%. While intended to shield American industries from foreign competition, these tariffs led to rising consumer prices and profiteering by American producers. This policy was highly unpopular among the public and contributed to Republican losses in the 1890 midterm elections and the 1892 presidential election.
Critics, including Michael Steele, point out that Trump's glorification of these tariffs demonstrates a profound ignorance of both economic history and policy. The tariffs of the 1890s were part of a broader protectionist agenda that, while benefiting certain industries, exacerbated wealth disparity and economic hardship for many Americans.
Modern Implications of Trump's Tariff Policy
Trump's own tariff policies, implemented during his presidency, have drawn similar criticisms. The tariffs imposed on Chinese imports, as well as on steel and aluminum, led to retaliatory measures from other countries, resulting in significant economic costs for U.S. farmers and consumers. These actions were seen as part of a broader shift away from multilateral free trade agreements towards more protectionist and bilateral trade deals.
Economic analysts have noted that Trump's tariff policies did not achieve their intended goals of reducing the trade deficit or reclaiming manufacturing jobs. Instead, they led to increased prices for consumers and had a negative impact on U.S. GDP. The failure of these policies to deliver promised economic benefits underscores the criticism that Trump's approach to trade is misguided and historically uninformed.
Steele's Critique
Michael Steele's critique of Trump's tariff rhetoric highlights the dangers of ignoring historical and economic realities. Steele argues that Trump's policies are not only economically flawed but also reflect a deep misunderstanding of the complex historical context in which they were implemented. This critique resonates with broader concerns about the impact of protectionist policies on economic growth and social equity.
