‘Willing sycophants’ came up with simplistic formula that has thrown global economy into disarray

cross-posted from: https://beehaw.org/post/19241243

Waving a big chart as a prop in the White House Rose Garden, Donald Trump suggested his new tariff plan was simple: “Reciprocal – that means they do it to us, and we do it to them. Very simple. Can’t get simpler than that.”

Perhaps a bit too simple. The method used to calculate the most important numbers in international trade, politics and economics has left some of the world’s leading experts shocked.

For each country, the White House looked up its trade in goods deficit for 2024, then divided that by the total value of imports. Trump, to be “kind”, said he would, however, offer a discount, so halved that figure. The calculation was even distilled into a formula.

  • Hawke@lemmy.world
    0·
    30 days ago

    The thing that makes no sense to me is… who is actually making those calculations?

    It sure as hell isn’t trump, I doubt his ability to understand what a trade deficit is.

    Is he even capable of describing his goal to someone in a useful way such that they could come up with the calculations?

      • Hawke@lemmy.world
        0·
        30 days ago

        I mean vaguely plausible except that I don’t think ChatGPT could do anything with what trump could ask it.

        And honestly ChatGPT would probably come up with a much much more sane policy than this one

    • SeaJ@lemm.ee
      0·
      30 days ago

      The dude majored in economics and very clearly does not understand how a trade deficit works.

      • futatorius@lemm.ee
        0·
        29 days ago

        He barely passed an undergrad econ degree at Wharton. Wharton’s MBA program is well-regarded, its undergrad program was, at that time, barely selective.