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Economist Calls Trump's Tariff Defense a 'List of Lies and Exaggerations'

MarketDash Editorial Team
10 days ago
Economist Justin Wolfers took aim at President Trump's tariff policy claims, arguing the administration's entire economic argument relies on falsehoods and embellishments rather than facts.

When the Facts Don't Fit

Economist Justin Wolfers isn't buying what President Donald Trump is selling on tariffs. In a Thursday post on X, Wolfers tore into Trump's recent tariff cheerleading, essentially saying that when your best argument for a policy includes seven lies and five exaggerations, you're telling everyone a lot more than any honest list of facts ever could.

"When the strongest argument for your policy is a list of lies (I count 7) and exaggerations (another 5)," Wolfers wrote, the result reveals far more than a "wonky list of truths" ever would.

The target of Wolfers' criticism was a Truth Social post from earlier this month where Trump defended his trade agenda with characteristic confidence. "People that are against Tariffs are fools," Trump declared, adding that the U.S. was now "the richest, most respected country in the world."

The Claims in Question

Trump's post painted a rosy economic picture: "almost no inflation," a "record stock market," and 401(k)s at their "highest ever." He claimed the country was "taking in Trillions of Dollars" through tariffs, money that would help pay down the $37 trillion national debt. He pointed to plants and factories "going up all over the place" as evidence of renewed investment momentum.

And then came the promise that's gotten the most attention: tariff dividend checks of $2,000 for American citizens, everyone except "high-income people."

Wolfers didn't bother fact-checking each claim individually. His point was broader—that the entire foundation of Trump's tariff argument lacked substance.

The Math Doesn't Work

The $2,000 tariff dividend plan has attracted particular skepticism from economists and policy experts. Erica York at the Tax Foundation's Center for Federal Tax Policy did the math and found it simply doesn't add up. "All tariff dividend designs would cost more than the revenue that the president's new tariffs will generate in 2025, and many designs would use all the revenue they will generate in 2026 too," she said.

Investor Kevin O'Leary called it a "quick band-aid" in a tough economy, warning that such policies could actually make inflation worse. "Inflation is the silent tax that punishes every American, especially the ones who can least afford it," he said.

An Unexpected Ally

But not everyone's against the idea. In a somewhat surprising turn, former Democratic presidential candidate Andrew Yang came out supporting Trump's tariff dividend plan, arguing it would provide direct financial help to Americans. Yang, a longtime advocate of universal basic income, said "Democrats in theory should be all for anything that helps the working class of this country," calling Trump's proposal a "huge win" for average Americans.

It's an odd political moment when a progressive champion of cash transfers finds common ground with Trump's trade policies, even as mainstream economists argue the numbers simply don't work.

Back to News

Economist Calls Trump's Tariff Defense a 'List of Lies and Exaggerations'

MarketDash Editorial Team
10 days ago
Economist Justin Wolfers took aim at President Trump's tariff policy claims, arguing the administration's entire economic argument relies on falsehoods and embellishments rather than facts.

When the Facts Don't Fit

Economist Justin Wolfers isn't buying what President Donald Trump is selling on tariffs. In a Thursday post on X, Wolfers tore into Trump's recent tariff cheerleading, essentially saying that when your best argument for a policy includes seven lies and five exaggerations, you're telling everyone a lot more than any honest list of facts ever could.

"When the strongest argument for your policy is a list of lies (I count 7) and exaggerations (another 5)," Wolfers wrote, the result reveals far more than a "wonky list of truths" ever would.

The target of Wolfers' criticism was a Truth Social post from earlier this month where Trump defended his trade agenda with characteristic confidence. "People that are against Tariffs are fools," Trump declared, adding that the U.S. was now "the richest, most respected country in the world."

The Claims in Question

Trump's post painted a rosy economic picture: "almost no inflation," a "record stock market," and 401(k)s at their "highest ever." He claimed the country was "taking in Trillions of Dollars" through tariffs, money that would help pay down the $37 trillion national debt. He pointed to plants and factories "going up all over the place" as evidence of renewed investment momentum.

And then came the promise that's gotten the most attention: tariff dividend checks of $2,000 for American citizens, everyone except "high-income people."

Wolfers didn't bother fact-checking each claim individually. His point was broader—that the entire foundation of Trump's tariff argument lacked substance.

The Math Doesn't Work

The $2,000 tariff dividend plan has attracted particular skepticism from economists and policy experts. Erica York at the Tax Foundation's Center for Federal Tax Policy did the math and found it simply doesn't add up. "All tariff dividend designs would cost more than the revenue that the president's new tariffs will generate in 2025, and many designs would use all the revenue they will generate in 2026 too," she said.

Investor Kevin O'Leary called it a "quick band-aid" in a tough economy, warning that such policies could actually make inflation worse. "Inflation is the silent tax that punishes every American, especially the ones who can least afford it," he said.

An Unexpected Ally

But not everyone's against the idea. In a somewhat surprising turn, former Democratic presidential candidate Andrew Yang came out supporting Trump's tariff dividend plan, arguing it would provide direct financial help to Americans. Yang, a longtime advocate of universal basic income, said "Democrats in theory should be all for anything that helps the working class of this country," calling Trump's proposal a "huge win" for average Americans.

It's an odd political moment when a progressive champion of cash transfers finds common ground with Trump's trade policies, even as mainstream economists argue the numbers simply don't work.