What Derek Thompson Is Missing About the Trump Economy
Plus, Talmud on Harvard President Garber; Fed blames tariffs for its cost overruns
A Substack writer named
is getting a lot of traffic with an article headlined “The US Economy Was Supposed to Be in a Recession By Now. What Happened?” He has a four-part answer that boils down to some of the Trump tariffs haven’t yet gone into full effect, the tariffs aren’t large enough to kill the whole U.S. economy, Fed Chairman Powell has heroically combated tariff inflation, and the predicted recession is on the way and eventually will arrive in force soon as Trump’s tariff policies take full effect.It’s funny, because to explain what is going on, Thompson goes back to the same crowd of so-called experts who were incorrectly gloomy.
Here are 12 factors that support an optimistic outlook for the economy and that Thompson does not mention in his article:
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