Trump Administration's Economic Interventionism Echoes New Deal Era

What's Happening?

The Trump administration is being compared to Franklin D. Roosevelt's New Deal era due to its significant economic interventionism. Both progressives and 'national conservatives' support this approach, advocating for government intervention to allocate capital and opportunities. However, economist George Selgin's book challenges the effectiveness of the New Deal, arguing that it failed to achieve economic recovery and often hindered it. The administration's policies, such as tariffs and subsidies, reflect a similar interventionist mindset, raising concerns about economic inefficiencies and market distortions.

Why It's Important?

The administration's interventionist policies have significant implications for the U.S. economy, potentially leading to inefficiencies and reduced economic dynamism. The comparison to the New Deal highlights the ongoing debate over the role of government in managing the economy. While some view these policies as necessary for addressing economic challenges, others warn of the risks of excessive government control. The administration's actions could set a precedent for future economic policy, influencing debates over free markets versus government intervention.

Beyond the Headlines

The administration's approach raises questions about the balance between government intervention and market freedom. The historical lessons from the New Deal suggest caution, as excessive intervention can lead to unintended consequences. The current policies may also reflect broader ideological shifts within the Republican Party, as 'national conservatives' embrace a more interventionist stance. This could have long-term implications for U.S. economic policy and political alignments.