The Decline and Fall of Our So-Called Degreed Experts

<![CDATA[The first six months of the Trump administration have not been kind to the experts and the degree-holding classes.Almost daily during the tariff hysterias of March, we were told by university economists and most of the PhDs employed in investment and finance that the U.S. was headed toward a downward, if not recessionary, spiral.Most economists lectured that trade deficits did not really matter. Or they insisted that the cures to reduce them were worse than the $1.1 trillion deficit itself.They reminded us that free, rather than fair, trade alone ensured prosperity.So, the result of Trump's foolhardy tariff talk would be an impending recession. America would soon suffer rising joblessness, inflation--or rather a return to stagflation--and likely little, if any, increase in tariff revenue as trade volume declined.Instead, recent data show increases in tariff revenue. Personal real income and savings were up. Job creation exceeded prognoses. There was no surge in inflation. The supposedly "crashed" stock market reached historic highs.Common-sense Americans might not have been surprised. The prior stock market frenzy was predicated on what was, in theory, supposed to have happened rather than what was likely to occur. After all, if tariffs were so toxic and surpluses irrelevant, why did our affluent European and Asian trading rivals insist on both surpluses and protective tariffs?Most Americans recalled that the mere threat of tariffs and Trump's jawboning had led to several trillion dollars in promised foreign investment and at least some plans to relocate manufacturing and assembly back to the United States. Would that change in direction not lead to business optimism and eventually more jobs? Would countries purposely running up huge surpluses through asymmetrical trade practices not have far more to lose in negotiations than those suffering gargantuan deficits?Were Trump's art-of-the-deal threats of prohibitive tariffs not mere starting points in negotiations that would eventually lead to likely agreements more favorable to the U.S. than in the past and moderate rather than punitive tariffs?Would not the value of the huge American consumer market mean that our trade partners, who were racking up substantial surpluses, would agree they could afford modest tariffs and trim their substantial profit margins rather than suicidally price themselves out of a lucrative market entirely?Economists and bureaucrats were equally wrong on the border.We were told for four years that only "comprehensive immigration reform" would stop illegal immigration. In fact, most Americans differed. They knew firsthand that we had more than enough immigration laws, but had elected as President Joe Biden, who deliberately destroyed borders and had no intention of enforcing existing laws.When Trump promised that he would ensure that, instead of 10,000 foreign nationals entering illegally each day, within a month, no one would, our experts scoffed. But if the border patrol went from ignoring or even aiding illegal immigrants to stopping them right at the border, why would such a prediction be wrong?Those favoring a reduction in illegal immigration and deportations also argued that crime would fall, and citizen job opportunities would increase, given an estimated 500,000 aliens with criminal records had entered illegally during the Biden administration, while millions of other illegal aliens were working off the books, for cash, and often at reduced wages.]]>