David Friedberg Predicts Trump's Master Plan

I don't sit inside of Trump's head and I don't have any direct line of communication to folks that are constructing the theory and the policy if I were to say what's the most masterful plan in an optimistic way of what could be going on here I would kind of craft it as follows tariffs aren't being done in isolation they're being done along with a coordinated policy effort to reduce income taxes and another policy effort to reduce government spending so those are three legs on a stool tariffs reduced income taxes reduced government spending they're related to each other because if we increase tariffs to import products is more expensive when the industrial

supply chain goes to the lowest part of production it's going to end up offshoring when there's no tariffs and if there are tariffs then you start to do production here so you're increasing both security for the US supply chain but also increasing demand and creation of a Workforce I think that the income tax piece is critical here because in order to make the capital available to build that industry here we need to unleash capital and reducing of income taxes the economic theory would be that Capital will now flow into these entrepreneurial activity these opportunities that have emerged where suddenly it makes sense for me to make textiles to make metals to make

materials to make cars to make all this stuff here in the United States that I otherwise wouldn't be making so both the corporate and the personal income tax by reducing it unleashes capital that instead of going into the government it now goes into the private sector into building businesses by reducing government spending we are moving workers from the government into the private Workforce so as those new Industries pop up as those Investments start to get made in building new industry on Shore where are the workers going to come from that will unleash the workforce and it will counterbalance the inflation that we're experiencing so there's a lot of inflation because of

tariffs and by reducing government spending that's the offset to inflation so those three actions I think are three legs of a stool and they actually are all interrelated to one another so that would be my grandmas theory of what might be going on