Wednesday, July 25, 2018

The Wall Street Journal Has Abandoned Trump's Trade War

WSJ editorial staff has a long history of supporting Republican economic policies and Republican presidents.  After this editorial on his $12 billion payout to farmers, who have lost access to foreign markets in response to US tariffs on imports,  he may have lost the WSJ.  We have an extremely efficient agricultural industry that produces more food than we can consume in the US.  It has depended upon exports to sell off its excess production.  The losses faced by farmers in the Mid-West will be harmful to Republicans in the mid-term elections.  Consequently, the Trump administration provided a $12 billion subsidy to the affected farmers.  A Trump administration official referred to the $12 billion subsidy as "rounding error" in the federal budget.  The affected farmers don't want subsidies, they want to export their products.  The WSJ doesn't like government subsidies either, it would like the  market to operate without government intervention.

The editorial staff of the WSJ will not support US tariffs and the abandonment of free trade by the Trump administration.  It may face of the risk of joining rest of the mainstream media that Trump refers to as "fake news".  The Republican Party has had a long term relationship with the WSJ that it will not like to lose.  It is a major source of ideas and input to the business community that typically votes for Republicans.  The GOP may become dependent on Fox News to support its policies.

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