Read

User menu

Search form

Donald Trump Tries to Explain Economics to The Economist. Hilarity Ensues.

Donald Trump Tries to Explain Economics to The Economist. Hilarity Ensues.
Mon, 5/15/2017 - by Jonathan Chait
This article originally appeared on New York Magazine

Donald Trump has now spent enough time listening to Republican economic advisers that he can give an interview to The Economist in which he attempts to regurgitate the ideas that have been fed him. At various points in the interview, Trump tries and fails to think of the word “reciprocity.” (“We need reciprocality in terms of our trade deals,” he asserts.) Asked to flesh out his vision for a fair NAFTA in more detail, he can only come up with synonyms for “big”:

It sounds like you’re imagining a pretty big renegotiation of NAFTA. What would a fair NAFTA look like?

Big isn’t a good enough word. Massive.

Huge?

It’s got to be. It’s got to be.

The interview really starts to go downhill when Trump explains his tax plan:

Another part of your overall plan, the tax reform plan. Is it OK if that tax plan increases the deficit? Ronald Reagan’s tax reform didn’t.

Well, it actually did. But, but it’s called priming the pump.

It is in fact well known among economists and policy experts that the 1986 Tax Reform Act was designed to be revenue neutral. The interviewer lets this go and continues:

But beyond that it’s OK if the tax plan increases the deficit?

It is OK, because it won’t increase it for long. You may have two years where you’ll … you understand the expression “prime the pump”?

Yes.

We have to prime the pump.

It’s very Keynesian.

We’re the highest-taxed nation in the world. Have you heard that expression before, for this particular type of an event?

Priming the pump?

Yeah, have you heard it?

Yes.

Have you heard that expression used before? Because I haven’t heard it. I mean, I just … I came up with it a couple of days ago and I thought it was good. It’s what you have to do.

It’s …

Yeah, what you have to do is you have to put something in before you can get something out.

A few facts. First, the United States is not “the highest-taxed nation in the world.” It is one of the lowest-taxed nations in the OECD:

Second, Trump did not invent the phrase “prime the pump.” It has been around since at least the 1930s and is extremely familiar to economists. Nor does it describe his plan. Priming the pump refers to a program of temporary fiscal stimulus to inject demand into an economy stuck with high unemployment. Trump is instead proposing to permanently increase the deficit in an economy with low unemployment. Telling The Economist you invented the phrase “priming the pump,” to describe a plan that does not prime the pump, is a bit like sitting down with Car and Driver, pointing to the steering wheel on your car and asking if they have ever heard of a little word you just came up with called “hubcap.”

3 WAYS TO SHOW YOUR SUPPORT

ONE-TIME DONATION

Just use the simple form below to make a single direct donation.

DONATE NOW

MONTHLY DONATION

Be a sustaining sponsor. Give a reacurring monthly donation at any level.

GET SOME MERCH!

Now you can wear your support too! From T-Shirts to tote bags.

SHOP TODAY

Sign Up

Article Tabs

Agriculture, the service economy, sexual exploitation, manufacturing, construction and domestic work drive today's enslavement around the world.

Thanks to the Electoral College, leftists have perhaps the final say this November over whether democracy can hold on for at least another four years, or if fascism will take root and infect all facets of the federal government for decades to come.

What remains unknown is whether post-truth Republicans will succeed in 2024 as the Nazis did in 1933.

Based on details that have emerged about Trump’s presidential agenda, the far-right Heritage Foundation plans for the next GOP president to have all the tools necessary to demolish multicultural democracy and establish a white, Christian ethnostate that imposes a gender apartheid not unlike the Taliban’s Afghanistan.

Donald Trump, Hitler

Like Hitler, Trump has a unique command of propaganda, a captivating public presence, and he knows how to drive home narratives beneficial to him and harmful to his enemies.

Agriculture, the service economy, sexual exploitation, manufacturing, construction and domestic work drive today's enslavement around the world.

Thanks to the Electoral College, leftists have perhaps the final say this November over whether democracy can hold on for at least another four years, or if fascism will take root and infect all facets of the federal government for decades to come.

History shows there are no “one-day” dictatorships. When democracies fall, they typically fall completely.

What remains unknown is whether post-truth Republicans will succeed in 2024 as the Nazis did in 1933.

Based on details that have emerged about Trump’s presidential agenda, the far-right Heritage Foundation plans for the next GOP president to have all the tools necessary to demolish multicultural democracy and establish a white, Christian ethnostate that imposes a gender apartheid not unlike the Taliban’s Afghanistan.

Based on details that have emerged about Trump’s presidential agenda, the far-right Heritage Foundation plans for the next GOP president to have all the tools necessary to demolish multicultural democracy and establish a white, Christian ethnostate that imposes a gender apartheid not unlike the Taliban’s Afghanistan.

Posted 1 month 3 weeks ago

Thanks to the Electoral College, leftists have perhaps the final say this November over whether democracy can hold on for at least another four years, or if fascism will take root and infect all facets of the federal government for decades to come.

Posted 1 week 5 days ago

What remains unknown is whether post-truth Republicans will succeed in 2024 as the Nazis did in 1933.

Posted 1 month 6 days ago

History shows there are no “one-day” dictatorships. When democracies fall, they typically fall completely.

Posted 2 weeks 22 hours ago

Agriculture, the service economy, sexual exploitation, manufacturing, construction and domestic work drive today's enslavement around the world.

Posted 5 days 20 hours ago

History shows there are no “one-day” dictatorships. When democracies fall, they typically fall completely.