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The Democratic Strategist

Political Strategy for a Permanent Democratic Majority

June 30: Trump Goes All Smoot-Hawley

Earlier this week Donald Trump gave a much-discussed speech on trade and globalization in Pennsylvania. I am not sure all Democrats understand how heretical the whole thing must seem to your average chamber of commerce member out in the heartland–much less to Wall Street and K Street Republicans. I wrote about that at New York.

[B]y and large, this candidate, who never really embraced systematic thinking, mostly talked of trade policy as something that he would improve via his personal negotiating genius. Uncle Sam might still play the trade game, but he’d no longer be Uncle Sucker, being constantly outmaneuvered by swarthy or sallow foreigners.

But now, in a speech delivered in the Rust Belt state of Pennsylvania, Trump has gone High Protectionist, rejecting not just this or that trade deal, but the whole idea of globalization, which he regards as a politician’s trick on the Folks, who have watched helplessly as Bill and Hillary Clinton sold out their birthright of manufacturing jobs for a mess of Wall Street pottage. Trump sounds like Bernie Sanders on a very bad, dyspeptic day:

“The legacy of Pennsylvania steelworkers lives in the bridges, railways and skyscrapers that make up our great American landscape. But our workers’ loyalty was repaid with betrayal.

“Our politicians have aggressively pursued a policy of globalization — moving our jobs, our wealth and our factories to Mexico and overseas. Globalization has made the financial elite who donate to politicians very wealthy. But it has left millions of our workers with nothing but poverty and heartache.

“When subsidized foreign steel is dumped into our markets, threatening our factories, the politicians do nothing.

“For years, they watched on the sidelines as our jobs vanished and our communities were plunged into depression-level unemployment. Many of these areas have still never recovered.

“Our politicians took away from the people their means of making a living and supporting their families. Skilled craftsmen and tradespeople and factory workers have seen the jobs they loved shipped thousands of miles away. Many Pennsylvania towns once thriving and humming are now in a state despair. This wave of globalization has wiped out our middle class.”

And on and on it goes. Trump’s narrative of an idyllic, prelapsarian America ruined by globalization has a few holes. It begins with virtuous protectionists George Washington and Alexander Hamilton (you know, the star of that Broadway musical), and then skips far ahead to the Clintons, who wrecked it all with NAFTA and China’s admission to the WTO. You wouldn’t know from listening to him that Ronald Reagan (mentioned by Trump only in connection with a highly uncharacteristic tariff he imposed on Japan) was talking favorably about something very much like NAFTA in 1980; that his successor George H.W. Bush actually negotiated and signed the agreement; or for that matter, that the TPP is as much a product of George W. Bush’s trade diplomacy as Obama’s.

More generally, Trump is ignoring a free-trade tradition in the Republican Party that dates back to the very post–World War II era that he identifies as an American golden age. Yes, Richard Nixon offered protection to the textile industry as part of his 1968 deal with Strom Thurmond (whose South Carolina Republican Party was a wholly owned subsidiary of textile baron Roger Milliken). Yes, John Connally bashed the Japanese during his unsuccessful 1980 presidential campaign. And yes, Pat Buchanan offered very much the same analysis and prescription of America’s economic challenges during his two unsuccessful presidential campaigns (curiously, he somehow saw America as ruined even in 1992, before NAFTA!).

But for the most part, Republican protectionism, rooted in the early 19th-century Whig protectionism of Henry Clay and his “American System,” expired with the Smoot-Hawley Tariff of 1930, widely blamed for setting off a worldwide trade war that made a worldwide Great Depression significantly more painful. And far from being some Clintonian invention, Democratic support for trade liberalization is probably the longest-standing policy tradition in either party, dating all the way back to Martin Van Buren (his predecessor Andrew Jackson had a protectionist streak often attributed to his important political following in the selfsame Pennsylvania where Trump unleashed his protectionist thunder today).

Bernie Sanders represents an authentic and fairly widespread progressive backlash against the Democratic free-trade tradition, rooted in the labor movement, which obviously lost an awful lot in the demise of many traditional, often unionized, industries. Hillary Clinton’s decision to oppose TPP is a sign of that perspective’s power. But in Trump’s case, he’s reaching far back to a lost Republican tradition that is now the starkest heresy among most economic conservatives. On word of Trump’s speech in Pennsylvania, you can be sure knees jerked violently not only on Wall Street and the editorial rooms of its Journal, but also in chambers of commerce across the land where the pure gospel of free trade has been preached for eons. Trump has now declared that gospel pure evil, and the blowback may make the embarrassment-bordering-on-irritated-hostility that his immigration demagoguery produced in the same circles look very mild by comparison.

It’s really unclear any votes Trump can peel off with this rhetoric will offset that blowback.  We’ll see.

One comment on “June 30: Trump Goes All Smoot-Hawley

  1. yoly on

    Recently, we’ve heard from ex presidents of the USA who oppose Trump. The motive of the Bush family is obvious. Trump aggressively exposed how weak Jeb Bush was as a Presidential candidate. And exposed how corrupt and compromised our entire presidential election process is in that we keep getting the same recycled candidates year after year, keeping all us all prisoners of the same old same old with no hope of progress or real change. IF this country really was the free and the cliche anyone could be president could be true, we wouldn’t see the same old tired boring idiots running for office year after year after year. Trump is only showing what we’ve all known for years and because he has the money to go against the oppressive system, many people want him to be our next President. People are tired of the Clintons. There are MILLIONS of Americans who could be candidates and all we get is more Bush and Clintons? Really? That’s why Trump attacks Clinton and the Bushes. We wanted to see change. Not the same old same old with empty promises and no change. And how can we vote for Clinton, when she can’t even complete a speech without a secret service agent coming to her rescue, telling her, “keep talking” when she “spaces out.” Or secret service coming to her rescue when she loses all neurological ability and collapses into the secret service taxi? Clinton is seriously ill. She’s not mentally or physically fit to be president. That leaves, as of now, only Trump for the role of president. No other option at this point. Not to forget Hillary is married to a man who had sex with an intern when he was President, and lied about it. And Hillary has never admitted he did this. She blamed the Republicans for a “conspiracy” even though it turned out to be true.


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