Donald Trump's Speech to the Whirlpool Workers Promoted His America First Policies

President Donald Trump’s recent speech at the Whirlpool Corporation in Clyde, Ohio, almost unnoticed by the press, helped him score major political points. Trump continues to hold on to a solid 30% to 40% approval or popularity rating among American voters. This is despite a raging pandemic, the lack of an effective public health policy, economic collapse, and a dysfunctional government. 

One reason is that Trump quietly continues his America First philosophy: high tariffs and a trade war. Yes, racism and ethnic backlash also boost his popularity among his base voters. Let us never forget, however, that people vote their pocketbooks. As it happens, many Americans fear that foreign competition sucks money out of their pocketbooks.

Yet tariffs are a bad idea. Economists have trouble agreeing on anything more controversial than the morning sunrise – except for tariffs. As conservative economist Greg Mankiw explains, “There are few things economists are unanimous about, but support of free trade comes pretty close.” All the same, tariffs get votes.

Earlier Post: Trump at "Protecting American Workers Roundtable"

Trump’s unilaterally-imposed tariffs especially targeted China. Trade Partnership Worldwide estimates that Trump’s tariffs had cost United States industry about $46 billion by the end of 2019. 

At the same time, while basic economic theory universally opposes tariffs, tariffs do help to protect inefficient domestic industries. Those industries’ workers and investors are grateful to be protected. Furthermore, jobs gained because of tariffs, although relatively few, are obvious and unmistakable. However, when tariffs cause the economy to slow down overall, costing a great many more jobs than the ones that are saved, the effect spreads out over the entire nation. This leaves the harms so watered-down that we easily overlook them. Trump’s tariffs fill protected workers with joy, while the people whom tariffs hurt probably don’t understand that the tariffs hurt them. 

So, let’s look at Trump’s speech to Whirlpool workers. Like most good public speakers, Trump stated his thesis right off, and his thesis was that he, personally, had stimulated Whirlpool’s business:

“I’ve been very good to you.  We’ve been good to each other.  With the incredible men and women of Whirlpool, the largest washing machine factory anywhere in the world.

“Every day, 20,000 gleaming new machines coming rolling off that beautiful assembly line — I just got to see it — and every single one is proudly inscribed with that glorious phrase, ‘Made in the USA.’  Remember?  (Applause.)  Made in the USA.”

“Made in the USA.” Repetition can exert a powerful effect. Trump isn't always sharp on the facts, but he uses repetition to powerful effect.  

That was an interesting trick at the beginning, wasn’t it? Trump had imposed the tariffs unilaterally. By dubiously using the “Trading with the Enemy Act of 1917” to bypass Congress, which he knew would never approve his tariffs, Trump stretched executive power beyond its reasonable limit. Doing so, he ensured that he, and he alone, could claim credit. That's why he could say, “I’ve been very good to you.”  Everybody knew that no one else had helped them impose the tariffs. Trump also made the tariffs transactional: he had helped the workers, and “we've been good to each other.” He gives them tariffs; they give him votes. 

Continuing, Trump quickly tied his accomplishments back to his America First philosophy: 

“The duty of a President is to put this nation’s own citizens first.  That’s why my administration swears by two simple but crucial rules: Buy American and Hire American.  (Applause.)” 

Trump echoed William McKinley's old call for “reciprocity.” He explained: 

“I committed to impose tariffs on goods to protect American jobs and stop China and many other countries’ abuses.”

 

Earlier Post: William McKinley Made the Tariff Sound Patriotic: Just Like Trump!

Therein, of course, lies the tariff's appeal. Foreign trade is good economics, but it doesn't sound patriotic. In contrast, the protective tariff quickly morphs into patriotism. This worked for William McKinley, who twice won the presidency on a protective tariff platform. Before him, Henry Clay made a career of supporting the protective tariff. Herbert Hoover foolishly thought that a protective tariff would end the Great Depression; of course, tariffs inevitably sucked even more jobs from the economy.

Earlier Post: Trump Sounds Like Henry Clay, Tariffs Win Votes

Continuing, Trump emphasized that he had imposed tariffs to help American workers:

“But this time, there was one big difference: Instead of an administration that sold out American workers and sold your company out and couldn’t have cared less for you, you finally had a president who stood up for the American worker.”

 And he continued to brag about jobs that his tariffs had created:

“That includes thousands of new jobs across the Ohio supply chain, from right here in Clyde to Findlay, Ottawa, Greenville, and Marion.  (Applause.)  All over.”

The crowd applauded and cheered throughout Trump’s speech. He scored points with them, no doubt about it.  

As it happens, I shopped for a new dishwasher this week. Whirlpool was my first choice. I soon discovered that the trade war has driven all dishwasher brands into short supply (our local appliance store has trouble getting them into stock), while ordinary repair parts are on two-week backorder. Appliance prices have skyrocketed. Yes, I prefer American-made appliances. Yes, I’m glad that Whirlpool workers have their jobs.  Nevertheless, the trade war that helped them continues to hurt American consumers, just as economists predicted. A 2019 economic study discovered that tariffs caused washing machine prices to go up by about 12%, and that each of the 1,800 jobs created cost American consumers US $815,000. Put it that way, and tariffs no longer sound like a big bargain.

The tariff can still be popular because the 12% increase in the price of washing machines costs the typical American consumer less than $100, and that’s only if the consumer buys a washing machine this year. However, spread those tariffs over many industries and many consumers, and tariffs turn into a bad deal indeed.

Always popular, tariffs have gained votes throughout American history. All the same, they have never been a good idea. While the press continues to obsess about Trump’s angry racism and power grabs, he works steadily, almost under the radar, to protect favored American industries. As he does so, industry workers respond by supporting him.

So, Trump told the Whirlpool workers that he had brought their jobs back by imposing tariffs, for which he took sole credit, while reminding them that he opposed unfair trade practices that hurt them. He cited numbers to support his point. Trump used his speech to equate tariffs with patriotism. He assured the workers that he was on their side. He spoke directly to the exact workers whose jobs he had created, while boxes full of washing machines, emblazoned with American flags, sat behind him. It is, however, less persuasive – less personal – for economists to note abstractly that tariffs drive down the aggregate number of jobs.

Is America First bad policy? Yes. Is it politically and rhetorically persuasive? Absolutely.

Image: Donald Trump speaks at Whirlpool factory, White House YouTube channel