David Pakman (10:05)
Yeah, we are very quickly going to see how the art of the deal works out. And immediately there were questions like, okay, so Trump announced a 34% additional tariff on Chinese goods. Is that in addition to the 20% tariff that's already there, therefore it's 54% or is it that you're adding 34% to 20, which would make it more like 26, 27? We, we just don't know. And it's not even really clear that they know. Now what is the aftermath right now as I am recording this show for you? The Dow Jones Industrial Average is down 1500 points. 1500 points. Now, by the time the stock market closes, the number may be different. Why do we care about the stock market if you might not have any stocks, if stocks are disproportionately held by the rich and corporations? Well, unfortunately, unfortunately, as a futures market, the stock market can, can tell us a lot. And what such a precipitous decline tells us is that this is going to affect people even who don't have shares of stock. Many people who don't have shares of stock work for companies that are publicly traded. More generally, when you start to see these sorts of market declines and this level of market instability, it is a signal that corporations are going to start to say, wait a second, things aren't looking so good. Maybe we need to lay people off. Maybe we need to buy fewer source materials for the things that we build, which will hurt the companies that they buy from, whether they are American or not. It will leave them with less product with which to make final goods. That means their revenue goes down. This means they don't make as much money, meaning they don't have as much money to pay employees. This is how you set off a problematic economic system cycle. As I said earlier, when you look at this and you say, I want to understand the economic justification you will find and there are people floating around who go, we're with, this is so great. This is going to be so great for the country. And finally they'll respect us again and There is no real economic justification. I've given this example before. I'll give it one more time. If you came to me maybe with tears in your eyes, maybe not. And said, David, I think that for economic reasons and national security reasons and economic independence reasons, we need to bring back semiconductor manufacturing to the United States, I would say, okay, that sounds reasonable. Let's put in a plan to do it. And what we would do is a combination of, let's give subsidies and tax credits, credits to people building semiconductor manufacturing in the United States. Let's on ramp a tariff for those getting semiconductors from Taiwan. But we won't do it overnight. This will be a 6, 8, maybe 10 year plan during which we will start to roll in tariffs for people buying semiconductors from Taiwan, provide tax incentives for people to do it here. Maybe it's deferred taxes or who, who the hell knows? And then eight years from now, 10 years from now, because remember, this is 50 years in the making. You don't turn it around by signing with a monster Sharpie on April 2nd. This takes time. Over the next six, eight, 10 years, we will have carefully, strategically strengthened American manufacturing, made ourselves more resilient. If there were to be a supply chain interruption from Taiwan, or if there were global conflict between China and Taiwan, that imagine China invades Taiwan and says, you're not selling any more of these semiconductors to the United States or we're going to jack up the prices or whatever. We've achieved something, we've done something thoughtful, we've been careful, we've been deliberate. That is a good use of the tool that we call tariffs. This is not a good use. There is no economic justification. The justifications are political and they are three letters. Ego. Trump's ego. And that's the reason that we are seeing this stock market collapse. I, I have to say thank you. I was notified yesterday via audiovisual means, telephonically, some call it, that my book hit the New York Times bestseller list. I don't even know what I'm doing. I jokingly said to my editor on the phone, I don't even really know what I'm doing here, but it's thanks to you, we don't yet have numbers. I have no idea on the audiobook, I have no idea on the Kindle, but just based on sales of the hardcover book, this is now, it's the instant bestseller, the Echo Machine. So thank you so much. I was notified by my publisher that they have 5,005, zero signed book plates available, which, you know, I signed thousands of these. We now have 50 left so we are opening those up. Any new purchases of the book, no matter where you buy it, go to David pakman.com/free book stuff. If you've already gotten one of these it's you're not eligible. They will double check. Go to David pakman.com/free book stuff. You'll be invited to submit you'll proof of purchase and we've got 50 of these. If the page works you'll be able to get one so you can check that out. And I'm without speech, I'm speechless and I have only you to thank. And just so people, I got an email from someone saying David, you're not going to obnoxiously open the show now by saying that you are a New York Times bestselling author, are you? Of course not. Of course not. I will open every other appearance I do with that, but I'm not going to subject that this audience to that. So thank you. Let's take a very quick break and back right after this. Millions of Americans grind or clench teeth at night and most don't even know it. If you have jaw pain, headaches, there is a great chance you are one of them. Teeth grinding is often caused by stress and it'll erode your teeth and enamel and it can lead to some expensive dentist bills. The solution can be a mouth guard. Dentist made mouth guards can cost hundreds of dollars. That's where our sponsor Remy helps. Remy makes dental grade professional quality mouth guards with no painful price tag. Up to 80% less expensive than what you'd pay at the dentist. And you don't have to go to the dentist for one. Remy's process is simple. They send you an at home impression kit to mold your teeth. You send it back, their dental team will make a custom fit guard. Remy's guards are so comfortable most customers forget that they are wearing them. I often use a mouth guard when I sleep. It's been a game changer. No more pain during the day. I'm saving my teeth. And with a 45 night satisfaction guarantee you can try it risk free. Go to shopremy.com pacman use the code PACMAN to save up to 50 50% that's shop R E M I.com/pacman use code PACMAN for up to 50% off. The link is in the podcast notes. There is no longer any denying it now in the aftermath of these global tariffs announced by Donald Trump yesterday on so called Liberation Day. Republican Civil war is here. It's Cracking wide open. We have now seen a stunning rebuke in which four Republican senators joined every Democrat in a 51 to 48 vote to block Donald Trump's tariffs on Canadian imports. This is not about the global tariffs. This is specifically on Canadian import tariffs. Those tariffs are certainly an important part of Donald Trump's so called Liberation Day agenda, which is a very stupid thing to call it. This resolution that has passed the Senate would also undo Donald Trump's emergency fentanyl declaration, which he's been using as a very flimsy excuse to jack up taxes on goods from Canada. And so far, this is really the clearest sign that Republican lawmakers are not patient with Donald Trump's economic chaos. They either don't want to wait for the short term pain to become long term gain, or more likely, they don't believe that the short term pain is going to become long term gain. A former Senate Republican leader, Mitch McConnell, did not hold back. He said straight up tariffs are bad policy. Trade wars hurt working people the most. That's true. Donald Trump personally attacked the four Republican defectors. They are Lisa Murkowski, Susan Collins, Rand Paul and Mitch McConnell. But behind the scenes, this is a much bigger story. Every single member of Congress, and by the Congress, I mean the House and Senate that we interview. This is now 10, 12 of them. They tell us the same thing. Not every Republican, but many Republicans privately are horrified by what Donald Trump is doing to the economy. They don't believe there's any rhyme or reason for these tariffs. They believe it's just generating chaos and uncertainty. And what's fascinating here is that what we are seeing is that these are not really principled breaks with Trump ism. These are desperate attempts to stop the bleeding. These Republicans didn't suddenly discover a love for working families, for example. What's happening is that there are some Republicans responding to pressure from businesses, from voters, from donors who see that the Trump economic policy is a complete and total wrecking ball. And this is a really important thing in terms of orienting ourselves over the next couple of years with regard to American politics, which is that even inside the MAGA movement, there are cracks forming. We've seen them for a while. I've been talking to you about them for a while. And the fear is no longer about angering Trump. It's what happens if we keep letting him run the show. Because they see the same numbers we see. They see The Dow down 1500 points today. They see industries panicking. They see that no one is seeing these tariffs and saying you know what I'm going to do? I'm going to bring manufacturing back. Allies are turning cold and it may be too late, but some of them are starting to realize that Donald Trump is torching what is left of American economic credibility. Even the Republicans who voted with Trump are sort of sweating. You know, you've got Senator Kevin Kramer admitting that this is hopefully just the start of a negotiation and not the plan that announcing these tariffs will have some short term effect. But then it's all going to be negotiated away, eliminated and things will be good. But I don't know that that's actually what's going on here. And that's not really a strategy. That's just fear that's making people scared. Rand Paul is usually a Trump ally. He torched the whole idea. In a floor speech. He said every dollar collected in tariff revenue comes out of the pockets of American consumers. And he's right. The tariffs are paid by American businesses that import. Those businesses pass the cost onto consumers. It's consumers who pay the tariffs. When your house costs a little more, you've just paid the tariff to the homebuilder who paid the tariff to the country that they got building materials from. That's how it works. If you want a sort of wake up call as to how absurd the situation is. Yesterday we had Senator Rand Paul, a Republican and Senator Tim Kaine, a Democrat, doing a joint appearance on Fox News saying this is not.