A Gilded Age-era political cartoon captioned “History repeats itself” lampoons late-19th century economic policies for reproducing the grim social inequalities of the Middle Ages.

In a 2007 article in the Globe and Mail, Donald Trump mused about a possible economic downturn on the horizon and expressed his glee at the prospect. “I’m excited if it is,” he said. “I’ve always made more money in bad markets than in good markets.” Now with his hands on the political levers of American economic wellbeing, Trump seems to be hinting that these good old hard times are coming soon with tariffs as the key political tool for economic disruption. Is Trump deliberately pushing the US economy, and the wider global economy, towards recession?

Studies confirm that there are solid grounds for Trump’s attraction to the benefits of tariffs and the economic hardships they cause. Recessions tend to exacerbate inequalities and lead to more concentration of economic power. The wealthy are better positioned to capitalize on the opportunities opened by economic downturns, while ordinary individuals and families are forced to tighten their belts.

The reasons for this are fairly straightforward. During economic recessions, prices in a wide range of key assets such as real estate, stocks,........

© Canadian Dimension