Nostalgia is, among other things, a coping mechanism. Psychologists say that when we are feeling depressed with current events, we often grow wistful about another time in the past when we believed our lives were better. Those memories may not be completely accurate, but they are powerful. J. Paul Getty said, “Nostalgia often leads to idle speculation.”
The Trump presidency, and more recently the chaotic roulette of tariff policies, carry with them a strong sense of economic nostalgia. It is appealing to believe we could return to “the good old days” when most products we use were made in America by American workers, and that individuals could have good jobs working in those manufacturing industries.
But those days are gone, and they never were as good as we like to remember. Ask anyone who worked in a coal mine, a steel mill or a textile factory 40 years ago.
Over time, most countries have realized that trade and economic interdependence are preferable to war. With certain notable exceptions—looking at you Russia and Iran—trading is better and cheaper than fighting.
The result has been a rising global economic tide. A report by the Mercatus Center at George Mason University concluded, “Free trade increases prosperity for Americans—and the citizens of all participating nations—by allowing consumers to buy more, better-quality products at lower costs.”
Lower costs are the key. Let’s say the trade war with China continues. The many products we buy from China will rise in price. When the U.S. imposed 20 percent tariffs* on imported washing machines from China and other countries in 2018, the price of a unit rose between $86 to $92 dollars per unit. Now Trump is threatening a 125 percent tariff on Chinese goods!
Perhaps the average West Virginian is not overly concerned about the wailing and gnashing of teeth from Wall Street—unless they have a retirement account they are checking daily—but the price they have to pay for the many essential imported products because of tariffs will hit folks where it hurts, in the pocketbook. If you were bothered by the price of eggs going up a couple dollars, just wait for sticker shock on a whole host of items.
U.S. imports from China totaled $463 billion in 2024, and the number of items is too long to list here. However, at the top are electronics, machinery, toys and games, plastics, furniture, clothing and textiles, articles of iron or steel and medical equipment.
Trump says he wants to correct the trade imbalance, while bringing those manufacturing jobs back to this country. The second part of that is where nostalgia takes over, and Trump focused on that during his “Liberation Day” announcement at the White House.
“With today’s action we are finally going to be able to make America great again — greater than ever before,” Trump said. “Jobs and factories will come roaring back into our country.” If those jobs returned, who would fill them? Manufacturing Today reports, “Labor shortages in the U.S. manufacturing sector have become a critical challenge, threatening the industry’s stability and growth.” Additionally, significantly higher labor costs here would drive up the price of those products.
In fairness, it is reasonable for this country to ensure that it will not become an economic hostage because of supply chain issues. For example, shortages of some healthcare supplies during the pandemic demonstrated just how vulnerable the U.S. could be because of a catastrophic event. Over 60 percent of the world’s semiconductors and 90 percent of the most advanced computer chips are made in Taiwan, which is under constant military threat from China.
So, it makes sense for this country to take steps to reduce potential economic vulnerabilities. But those steps should be targeted to products where the greatest risk exists—think semiconductors, not athletic shoes or t-shirts.
Usually, nostalgia is harmless. It can be heart-warming to sit with family and friends and remember fondly “the good old days.” Nostalgic memories, even if they are viewed through rose-colored glasses, are meaningful to connect with our past.
However, nostalgia is not a reliable source for economic policies that will upend long-established global trade. If Trump follows through with his threats and Republican members of Congress refuse to hold him in check, average folks will feel the pain when their washing machine goes on the blink and when they have to make hundreds of other purchases.
*(The 2018 washing machine tariffs started at 20 percent on the first 1.2 million units imported and then rose to 50 percent after that. The tariff’s expired in 2023.)