In the last week, Trump has gone wild on the global economy, saying tariffs are the key to American prosperity.
As a result, global stock and bond markets tanked.
Today — telling reporters that “you have to be flexible” and conceding that “over the last few days it looked pretty glum” — Trump paused his tariffs for most countries for the next 90 days, backing down on his policy that had sent markets into a tailspin and threatened to upend global trade.
The reversal prompted the S&P 500 stock index to climb over 7 percent in just minutes.
Traders with inside information about what Trump was about to do — some of them, presumably, Trump family members and cronies — just made a fortune.
It looks like chaos but Trump’s chaos always creates winners and losers, and Trump makes sure he’s on the winning side.
The mayhem that Trump’s cuts in the federal workforce is creating have nothing to do with efficiency or with reducing the federal budget deficit.
Trump and Musk just gutted the IRS at the height of tax season by firing thousands of employees – and is planning to downsize the agency even more.
Recent estimates show that the richest 1 percent of Americans already underpay their taxes by as much as $205 billion each year. And for each $1 the IRS invests in auditing the tax returns of the richest 1 percent, it collects $13 in additional tax revenue.
So the tax revenue our government loses every year is way higher than the amount of taxpayer dollars DOGE claims to have “saved” by cancelling contracts and grants for vital government programs – of which only a small portion can actually be verified.
The truth is: Gutting the IRS has everything to do with making it easier for billionaires like Elon and Trump to evade taxes.
It all feels like chaos until you look more closely
Trump’s unpredictability also makes him seem particularly powerful and dangerous.
In 1517, Niccolò Machiavelli argued that sometimes it is “a very wise thing to simulate madness.” Wise, that is, for the manipulative ruler. Trump is simulating madness, but it’s all about increasing his wealth and power.
An increasing number of so-called “leaders” – in the private, public and non-profit sectors, and around the world – are telling their boards, overseers, trustees or legislatures: “We have to give Trump whatever he wants and even try to anticipate his wants, because who knows how he’ll react if we don’t?”
My strong recommendation to anyone in a position of leadership here or abroad: Do not give in to Trump’s feigned madness. Do not surrender. Do not capitulate. Join forces and fight back.
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