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IF Trump gets to be the bull in the china shop, then our economic system is endangered. Those of you who somehow think the incompetent and corrupt Trump might somehow be good for the economy...might want to rethink that.

The Marketplace podcast has a great discussion of how the election result may effect all things economic.

https://www.marketplace.org/2024/10/28/fed-indepen...

In the Fed’s own words, it was “designed to carry out its responsibilities without interference or control from the vested interests inherent in electoral politics, fiscal policymaking, and private banking.” In practice, the central bank’s independence has evolved since it was created by the Federal Reserve Act in 1913.

But Trump doesn't like that.

“It is generally recognized and appreciated that if the Federal Reserve’s monetary policy decisions were subject to congressional or presidential override, short-term political forces would soon dominate,” Alan Greenspan, a five-term Fed chair, said in 1996. “The clear political preference for lower interest rates would unleash inflationary forces, inflicting severe damage on our economy.”

After Powell, who was nominated by Trump, began his chairmanship in 2018, the Fed continued gradually raising interest rates. In an interview that year with The Wall Street Journal, Trump said about Powell: “He was supposed to be a low-interest-rate guy. It turned out he’s not. … I’m very unhappy with the Fed because Obama had zero interest rates.”

In addition to criticizing the Fed’s policy decisions, Trump has also said on multiple occasions that he believes he should have a role in interest rate decisions. This month, at the Economic Club of Chicago, he said: “I think I’m better than most people would be in that position. I think I have the right to say, ‘I think you should go up or down a little bit.’ I don’t think I should be allowed to order it, but I think I have the right to put in comments as to whether or not interest rates should go up or down.”

LOL, says the poster boy for the Dunning-Kruger effect.

Tom Nichols, staff writer at The Atlantic, professor emeritus at the Naval War College:

“I think the American people don’t understand the incredible danger of an American president saying, ‘Well, I should just be able to set interest rates.’ That’s Soviet levels of government intervention,” Nichols said. “That’s incredibly dangerous because then the rest of the world says, ‘Well, I guess the United States isn’t really a functioning economy. It’s just an autocracy where the value of goods and the value of the dollar are basically set by this ignorant authoritarian who wakes up and says, my poll numbers are down, let’s lower interest rates for a while.'”

Ges-

I heard that tonight while cooking dinner. Kai Ryssdal made a great case for keeping the fed independent and out of the hands of politicians.

It made me wonder why so many libertarians of ten years ago now support Trump.

My son in law is libertarian, though not a Trumper by any stretch. For him, the fed is the root of all evil (his words) and should be abolished- not put under the direction of a president who would raise or lower interest rates, depending on which way the political wind was blowing, as Trump has indicated he wants to do on several occasions.

At least with an independent fed, the fed governors do a credible, though imperfect job of managing interest rates based on economic data rather that political polling data.

The self proclaimed genius bankrupted 3 Atlantic City casino's. An industry that is known for "the house always wins", and trump the savant bk'd 3 of 'em. Heaven help us if he gets in charge.

It'll be like the State of Kansas eliminating tax on businesses, and drastically cutting taxes
on individuals, from 2012 to 2017. Kansas GOP Governor told voters it would be a magic elixir.
He lied.

Trump and his tariff's will lead to the same failure.
Why would anybody trust in anything Trump says about running a government ?????

https://en.wikipedia.org/wiki/Kansas_experiment#:~...

Either the economy or U.S. democracy is the most important issue to many voters.

On the economy, Trump promises to:
T1. End inflation
T2. Make America affordable
T3. Make America the dominant energy producer
T4. Stop outsourcing

My thoughts.
T1. Inflation is already at the 2% target. Is Trump going to foolishly reduce the target to zero?

T2. Trump's plan for affordable housing is to deport people. Also, energy prices will be reduced by more than 50% somehow. The only certain ways are price controls (that lead to shortages) or subsidies. Sounds foolish to me.

T3. The U.S. is already the world's largest crude oil producer.

T4. The U.S. has successfully competed with other economies for years, and can continue to do so. Refusing to trade with others will only reduce our edge.

On the economy, Harris promises to:
Fight price gouging and enhance competition.
Build more housing to bring down housing costs.
Strengthen the middle class.
Promote entrepreneurship.


=== links ===
Economy Most Important Issue to 2024 Presidential Vote
"Now I am going to read a list of some of the issues that will probably be discussed in this year’s presidential election campaign. As I read each one, please tell me how important the candidates' positions on that issue will be in influencing your vote for president -- extremely important, very important, somewhat important or not important."
"Whereas 66% of Republicans and Republican-leaning independent voters rate the economy as extremely important to their presidential votes, far fewer Democratic and Democratic-leaning independent voters do (36%)."
"Whereas 58% of Democratic and Democratic-leaning independent voters rate U.S. democracy as extremely important to their presidential votes, far fewer Republicans and Republican-leaning independent voters do (39%)."
https://news.gallup.com/poll/651719/economy-import...

How Harris and Trump’s economic pledges stack up, October 25, 2024
"That said, there are significant differences in how the candidates propose to bring down prices across the economy. Trump wants to force companies into creating jobs on US soil. And Harris wishes to break down the power that some companies have amassed in the marketplace."
https://theconversation.com/how-harris-and-trumps-...

Harris Economic Plan 'Vastly Superior,' 23 Nobel Prize Winners Say, October 23, 2024
"A group of 23 Nobel Prize-winning economists released a letter Wednesday in which they expressed support for the policies proposed by Vice President Kamala Harris while warning that the policies of her opponent, former President Donald Trump, would be “counterproductive.”"
https://www.thefiscaltimes.com/newsletter/20241023...

Twenty-Three Nobel Economists Sign Letter Saying Harris Agenda Vastly Better For U.S. Economy
"Harris’s economic agenda will improve our nation’s health, investment, sustainability, resilience, employment opportunities, and fairness and be vastly superior to the counterproductive economic agenda of Donald Trump. His policies, including high tariffs even on goods from our friends and allies and regressive tax cuts for corporations and individuals, will lead to higher prices, larger deficits, and greater inequality. Among the most important determinants of economic success are the rule of law and economic and political certainty, and Trump threatens all of these. By contrast, Harris has emphasized policies that strengthen the middle class, enhance competition, and promote entrepreneurship."
https://www.documentcloud.org/documents/25247867-2...

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