Prosperous Nation, Unveiled
Longing for Moral Simplicity: Trump's Nostalgia for the Perceived "Moral Golden Age"
In a nutshell, the era we're discussing was a golden age for the American economy, often referred to as the "Gilded Age." During these decades, the United States transitioned from selling raw materials to selling manufactured goods, surpassing the UK in industrial production by 1895 and soon becoming the world's largest economy. While American workers enjoyed surplus wages, there were issues such as frequent and prolonged recessions, financial bubbles from rapid railroad development, and political corruption - all thanks to those pesky political machines.
Now let's talk about the elephant in the room - tariffs. While Trump and his supporters believe that tariffs were the primary driving force behind America's economic success, most economic historians would disagree. Instead, they point to rapid population growth, the settling of new territories, and the spread of technical education and intellectual property protection as key players. So, while tariffs played some role, they probably weren't the star of the show.
A Nostalgic Nod to the Past
Trump's fondness for the Gilded Age isn't just about making America great again; it's about tapping into that good ol' nostalgia. His logic is rather simple: if America was richest when tariffs were involved, then let's bring back those tariffs to recapture that wealth. While the economic volatility, income inequality, and political corruption of that time are largely overlooked, Trump presses on, oblivious to the fact that America still ranks among the world's wealthiest nations according to World Bank data.
It's no secret that Americans, in general, aren't known for their love of history, even their own. For conservative folks, nostalgia usually comes from the Eisenhower era in the '50s or Reagan's reign in the '80s. Strangely enough, Trump is appealing to an era most of his voters haven't even heard of. One could argue that Trump's attachment to this period is fuelled by personal notions of perfection.
Small Government: The Trump Way
Let's dive into Trump's mind for a bit, shall we? Besides tariffs, Trump has a soft spot for the absence of a federal income tax during the Gilded Age. During this time, the federal government was tiny, relying heavily on tariffs for funding. In fact, there was even a budget surplus that helped reduce public debt.
Comparing this era to other conservative darlings like the '50s and '80s shows a stark contrast. Those periods were marked by significant military spending, budget deficits, and a bloated federal bureaucracy. From Trump's perspective, the Gilded Age seems like a utopia, with no federal taxes or regulations, but economic growth and technological progress galore.
That said, attempting to bring back the Gilded Age is wishful thinking, even for Trump. With the increased complexity of the modern economy and society, we can't rely on 19th-century tools to manage it. Trump might dream of abolishing the federal income tax and increasing Pentagon spending to mind-boggling levels, but let's be real - it's not happening anytime soon.
Editor's opinion may not align with the author's viewpoint
Deconstructing the Gilded Age
Key Factors Contributing to the Success of the American Economy During the Gilded Age
- Big Government, Big Business: The federal government, adopting a laissez-faire approach, allowed large corporations to flourish with minimal oversight.
- Innovation: The period witnessed significant technological and industrial advancements due to the contributions of figures like the "Robber Barons."
- Tariffs: While tariffs protected domestic industries, their overall impact on growth is debated.
- Exploitation: The exploitation of natural resources and labor fueled rapid industrialization at a high social cost.
Donald Trump's Perspective on Tariffs
Trump has emphasized tariffs as a tool for economic growth and protection of American industries. While his stance aligns with views that see tariffs as beneficial for protecting emerging industries, Trump's approach differs from the broader consensus among economists, who view tariffs as one factor in a complex interplay of technological innovation, government policies, and social factors.
Trump's tariffs were often implemented with the goal of addressing current trade imbalances, rather than as part of a broader industrial policy aimed at long-term economic restructuring. Additionally, his tariff strategy has faced criticism for not adequately considering social and environmental impacts, reflecting a more direct, economic nationalist approach.
In the 1890s, during the Gilded Age, tariffs played a role in funding a small federal government, and these policies allowed big corporations to flourish with minimal oversight, a key factor contributing to the success of the American economy, highlighting the policy-and-legislation aspect of that era.
In the 21st century, Donald Trump's fondness for tariffs seems inspired by the era's perceived economic success, adhering to the belief that tariffs can drive economic growth and protect American industries. However, the economic volatility, income inequality, and political corruption of that time are often overlooked, illustrating the complex nature of the Gilded Age when looking through the lens of politics and general news.
Despite some arguments that trace America's economic strength back to tariffs, most economic historians regard rapid population growth, the settling of new territories, and the spread of technical education and intellectual property protection as key factors, challenging the predominant role given to tariffs in Trump's perspective.
Trump's vision of bringing back the Gilded Age and abolishing the federal income tax, aiming for a leaner government, is contrasted by experts who deem it unrealistic due to the increased complexity of the modern economy and society, pointing to the inadequacy of 19th-century tools in managing today's challenges.
