Timothy Noah writes:

Donald Trump’s election provides a useful occasion to examine the difference between what rich people want and what constitutes a thriving economy.

The stock market, which is where rich people live, has been climbing since Election Day. On November 6, the day Trump was declared the winner, the Dow rose 3.6 percent; the S&P 500 scored its biggest gain in two years; and the world’s 10 richest people, nine of whom live in the United States, saw their wealth increase by a combined $63.5 billion. Over the month of November, the S&P 500 rose 5.7 percent. Stocks fell in December after the Fed signaled it would ratchet back rate cuts, but as of December 18, U.S. equities were still up 29 percent for the year.

The economy, on the other hand, is starting to falter. The Fed ratcheted back future rate cuts because Trump keeps threatening to slap tariffs on every conceivable import. On Friday, Trump boasted on Truth Social: “I told the European Union that they must make up their tremendous deficit with the United States by the large scale purchase of our oil and gas. Otherwise, it is TARIFFS all the way!” The United States is the largest exporter of oil to the EU already, and the European Commission previously floated the idea of buying more liquefied natural gas from the United States (because it’s cheaper than Russian LNG). So it’s quite possible Trump is merely trying to take credit for something that’s happening anyway. But if Trump aims to push the EU further, he could start a trade war. [Continue reading…]