Why are Trump, along with Musk and his Muskrats, breaking government and the institutions that make this country a somewhat livable place? Seems crazy.
A couple of our most significant economic thinkers took up the puzzle in the last few days. Short answer: yes, the Trump regime is crazy -- and vile too.
Adam Tooze is the preeminent English language economic historian of the 20th and 21st century world capitalist system. (I have written about his highly accessible books here, here, here and here.) He does the work to engage what passes for economic theory claimed by Trump's intellectual apologists and wrecking appointees.
I began to wonder whether this search for a rational wing in Trump’s economic policy is not, in fact, a step towards sane-washing and whether this sane-washing is not driven by some engrained mainstream framings of America’s problems that react in sympathy with the Trump administration’s rhetoric of crisis and victimization even if they are out of sympathy with the Trump administration in general.
Is there a real and important continuity of problems in America’s political economy that at least parts of the new Trump administration are trying to address, thus forming a continuity with the Biden team and Trump 1.0?
Or is the shellshocked commentariat of 2025 in the grip of a kind of Stockholm Syndrome in which our own inner fears lead us to engage with our captors in a way which denies the actual reality of being hurled into a mad house? Call it Mar-a-Lago (Accord) Syndrome.
... we are all struggling to find some kind of rational purchase on the unhinged situation created by the Trump administration.
Turns out, after serious engagement with some Trump apologists, that he finds "no there there" in Gertrude Stein's memorable formulation.
The Stockholm syndrome element kicks in when we come to the original framing of the problem: The belief that something must be done. Once you are convinced that “something must be done”, you become vulnerable to someone hawking a big plan to “do things”.
Why do sane people in contemporary America believe that “something must be done”? Ignoring the reflexive element of crisis by which Trump himself is the main reason something must be done, which renders one susceptible to any big idea that might fix Trump (even if elements of that “fix” are shared with analysis offered by the Trump camp itself) etc etc, there are two main schools of thought:
• 1. American deindustrialization and class balance. ...
• 2. American debt....
Both arguments 1. and 2. are well known. Both are also contentious. No reader of Chartbook will be surprised to hear that I find both 1. and 2. unconvincing. But that is not my point here. My point is that if you do believe either 1. or 2. you need to be on your guard against Mar-A-Lago syndrome.
Even if you disapprove of the Trumpites style and lawlessness, you may be tempted to take at their word the more reasonable members of the highjack team who insist that they offer a dramatic and comprehensive plan to address the crisis you also believe in, leading you to lose track of the fact that … they are highjackers and they are holding you hostage!
By buying into the reality of underlying problem that Mar-A-Lago claims to be addressing you run the risk of overemphasizing the rational element in Trump 2.0.
Tooze simply finds no rational element.
None of us really knows where this clown car is headed and what drives it on its crazy course. It seems like a mystery even to many on board. Quite reasonably we look for elements of rationality. We ask: who inside MAGA 2.0 is thinking and what are their thoughts? We then relate that to our own efforts to diagnose America’s history and the history of the world economy. ...
... To historically minded people it is appealing for obvious reasons. But it puts us at risk of is underestimating the radicalism of the break marked by the Trump administration. In search of historical context we miss what is most historically significant. We avoid facing the conclusion that the vision of a Mar-a-Lago Accord may have more in common with grift, a protection racket or a facelift pandering to the ignorant vanity of an old man than with economic policy as we have hitherto known it.
Faced with Trump, the risk is that conventional realism is a form of escapism.
You can read the entire Tooze argument here.
Paul Krugman, former NY Times columnist and Nobel Prize for economics recipient, comes to similar conclusions, even more pithily expressed. In trying to understand the Trump/Musk vandalism in government, he sees no plan -- just the wounded egos of ignorant men.
My guess, instead, is that it’s an ego thing, that Social Security has become to Musk what Canada has become to Donald Trump. Both men at one point said something stupid, something that would have turned them into laughingstocks if there weren’t so much fear in the air. But both men have been unable to let go, doubling down in what amounts to an attempt to redeem their initial foolishness.
In case you’ve forgotten, back in December, when Justin Trudeau visited Mar-a-Lago, Trump taunted him by suggesting that Canada become a U.S. state, calling him “Governor Trudeau.” Some people suggested that it was meant as a joke, but it would be more accurate to call it a dominance display.
But once Trump realized how ridiculous the performance made him look, he refused to let go. Instead, annexing Canada seems to have become a fundamental plank of Trump’s foreign policy, with his demands getting ever more insistent the more obvious it becomes that Canadians loathe the idea.
Trump's chief of staff listens to him threaten to annex Canada
Since then, Musk has replicated his insecure co-president and put Social Security under the gun:
Musk’s big blooper was his claim that millions of dead people are receiving Social Security checks. This claim probably reflected the failure of young Musk staffers — what Dudek called the “DOGE kids” — to understand how the SSA’s databases work, combined with a complete lack of common sense. I mean, if there really were huge numbers of dead people receiving Social Security payments, don’t you think someone else would have noticed?
In a normal political environment, getting something that big that wrong would have destroyed Musk’s credibility and led to his permanent exile from any role in setting policy. But this is America in 2025, so Trump amplified the already-refuted claim when addressing Congress, and Musk seems more powerful than ever.
Furthermore, Musk refuses to give up his Social Security smears, making the completely implausible claim that fraudulent use of Social Security numbers accounts for 10 percent of federal spending. And I’d argue that that the plan to effectively cut off many disabled Americans is best seen as part of a desperate effort to find or pretend to find Social Security fraud, retroactively justifying Musk’s big mistake.
Still, does the plan have to be this cruel to the most vulnerable Americans? As I see it, the cruelty is a feature, not a bug.
... It's hard to escape the sense that DOGE staffers are actually enjoying this. And why not? We’re mostly talking about poorly socialized young men suddenly given the power to ruin other people’s lives, taking their cues from a leader who has declared that “the fundamental weakness of Western society is empathy.” So why should we be surprised that the DOGE kids’ rampage through the government looks more and more like a remake of Lord of the Flies?
Krugman read Tooze's screed and agrees.
Look, I understand that it’s more fun to write an article about the supposed emergence of a new economic philosophy than to write yet another article about how ignorant men are, once again, saying stupid things. And I guess some journalists are uncomfortable at the thought that people with great power to shape policy have no idea (or rather nothing but false ideas) what they’re doing.
But trying to put an intellectual gloss on Trumpist international economic policy is sanewashing that misinforms readers rather than helping their understanding.
... My point is that Trump believes many blatantly false things that suit his prejudices. Why imagine that he and his courtiers have sophisticated ideas and a deep strategy when it comes to international economics?
On the surface, Trump’s trade policy looks stupid and destructive. Dig deeper, and you discover that this first impression was completely valid. Trying to pretend otherwise is just misinforming readers.
We don't have to be overawed because these guys are considered some of the best academia has to offer in their field. They care about being understood and they have given us the goods: Trump's economic antics are stupid and cruel, without any rationality beyond grift and grievance.
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