The Trump-Biden Consensus on the Economy Is Bad for Business (Michael R. Strain, 1/30/24, Financial Times)


Donald Trump and Joe Biden differ in many important ways, but both reject the broad consensus that largely governed economic policy in the decades before Trump’s 2016 election — one that is generally supportive of business and in favour of free enterprise. This is bad for businesses, workers and consumers.

Take free trade and industrial policy. Senior officials from both administrations have explicitly argued for abandoning the international economic order built after the second world war in favour of a new consensus that relies more on government planning and less on market outcomes.

But Trump and Biden’s break with the past goes beyond protectionism. Ronald Reagan chose to use his last speech as president to praise immigrants. “We lead the world,” he said, “because, unique among nations, we draw our people — our strength — from every country and every corner of the world. And by doing so we continuously renew and enrich our nation.” Trump, in contrast, charges immigrants with “poisoning the blood” of America. Biden, though much less extreme, has surprised his supporters by not being friendlier to migrants and the businesses that rely on them.

Of course, opposition to immigration comes naturally to Democrats, who view the migrants as labor competition, for Republicans it’s disgraceful.