Donald Trump came to the board room of power through what some are calling “economic nationalism”….the whole “Make America Great Again” smacks of this policy.
Economic nationalism is a term used to describe policies which are guided by the idea of protecting domestic consumption, labor and capital formation, even if this requires the imposition of tariffs and other restrictions on the movement of labour, goods and capital. It is in opposition to Globalisation in many cases, or at least on questions the unrestricted good of Free trade. It would include such doctrines as Protectionism, Import substitution, Mercantilism and planned economies.
Examples of economic nationalism include Japan’s use of MITI to “pick winners and losers”, Malaysia’s imposition of currency contols in the wake of the 1997 currency crisis, China’s controlled exchange of the Yuan, Argentina’s economic policy of tariffs and devaluation in the wake of the 2001 financial crisis and the United States’ use of tariffs to protect domestic steel production.
Ex-Trump adviser, Bannon, was a champion of this so-called policy…..the problem is that most of it is nothing but snake oil….a con if you will.
Former chief strategist and campaign manager Steve Bannon’s departure from the Trump White House surely does not mean an end to the demagogic racial politics in which Donald Trump has trafficked for decades.
It does, however, seem to mark the final eclipse of the notion that Trump would move beyond demagoguery and construct a vision of “nationalist” economic policy that would differ in a meaningful way from standard-issue pro-business Republicanism. Bannon, on his way out the door, appeared serious about this idea — phoning up progressive magazine editor Robert Kuttner to try to find common ground on trade policy and explain that “to me, the economic war with China is everything.”