Posts Tagged ‘Brexit’
“Jobs in factories will come roaring back into our country”*…
When President Trump announced sweeping tariffs on “Liberation Day” last spring, the promise was that manufacturing– and the jobs it provides– would return to the U.S. Scott Lincicome (from the conservative Cato Institute) assesses the “progress” to date…
US manufacturing ended 2025 with a thud, capping a rough year for the sector. To recap, manufacturers shed 63,000 jobs, according to the latest data from the Bureau of Labor Statistics. It wasn’t just labor that was hurting. The Institute for Supply Management’s manufacturing index clocked in at 47.9 for December, marking the 10th consecutive month of contraction as new orders were especially weak and costs at historically elevated levels.
Then there’s the Federal Reserve’s Beige Book of regional economic conditions and surveys from the regional Fed banks, which have repeatedly documented cases of manufacturers delaying hiring and investment amid weak market conditions, rising costs, shrinking profit margins and persistent uncertainty. As for the “hard” data, manufacturing capacity and output, while incomplete, sagged through the Fall.
Overall, the evidence reveals a sector that’s stagnant at best, and a long way from the manufacturing renaissance President Donald Trump promised when he took office for a second time a year ago. No wonder administration officials have pivoted from predicting a factory boom in 2025 to now saying it will happen in 2026 and beyond.
Better tax, regulatory, and monetary policy should indeed provide a tailwind for manufacturing, but the sector will probably continue to struggle. If so, Trump’s tariffs will be a big reason why…
[Lincicome unpacks the several ways that Trump’s tariffs have confounded domestic manufacturing: increased costs (especially on materials/compnents not available in the U.S.) and tariff and policy/regulations that might be politely called “inconsistent” (or less politely, “flighty”); last year, the US tariff code was amended 50 times)– which has added management/coordination costs (Federal Reserve economists estimate that domestic manufacturers will pay $39 billion to $71 billion annually to comply with the new regime, representing time and money they can’t spend on their businesses); but perhaps even more damagingly, has created uncertainty that has slowed corporate action/investment. Lincicome concludes…]
… The harms to manufacturers are consistent with research on past tariff episodes and help to explain why the sector struggled in 2025 — and why things might not get much better this year. Recent forecasts also suggest caution, with manufacturers and supply chain professionals predicting continued headwinds due to the costs, uncertainty and complexity of tariffs. And the Supreme Court won’t save them. If it invalidates Trump’s “emergency” tariffs in the coming days, administration officials have promised to invoke alternate authorities to recreate them.
Global supply chains took years to develop. They’ll take even longer to reorganize and will do so at great cost if, that is, they don’t break altogether in the meantime…
“America’s Manufacturing Renaissance Is Missing in Action,” (gift article) by @scottlincicome.bsky.social in @opinion.bloomberg.com.
Relatedly, Trump’s immigration policy was (like the “manufacturing boom”) supposed to have reduced the federal deficit. The Administration is deporting immigrants at a brisk clip– but at an extraordinary cost, both economically and constitutionally. That’s not to mention the costs to the targeted immigrants themselves, to their familires and to the companies and economies of which they have been preponderantly positive and productive parts. Indeed, a different group at Cato recently published a thorough study demonstrating that– far from being a drag on the economy– immigrants have reduced federal (and state and local) deficits by $14.5 Trillion since 1994… though, of course that contribution is now, thanks to the ICE storm, slowing down.
The immigration crackdown was also supposed to turbo-charge job growth (for the U.S.-born); it has not. Indeed, the climate of fear and the difficulty in securing visas has led to a hiring boom abroad: “Silicon Valley can’t import talent like before. So it’s exporting jobs.”
It’s easy to see Trump’s election and the imposition of his economic and immigration policies as America’s Brexit. That abrupt rupture of social, cultural, and economic conventions is now about a decade old… and the results aren’t pretty…
Brexit, the United Kingdom’s decision to withdraw from the European Union, is a rare contemporary example of a major developed economy raising trade barriers and more generally pulling back from international economic integration. When the Brexit referendum took place in 2016, academic and professional economists generally forecast that the policy about-face would result in a negative hit to the United Kingdom’s economy of about 4% of GDP over the long-term. Rather than a sudden, visible economic shock following the vote, the costs of Brexit have been gradual and cumulative. Now, almost a decade later, new research aims to assess Brexit’s actual impact on the United Kingdom’s economy, which involves the challenging task of comparing the country’s economic indicators to what they would have been if the United Kingdom had remained in the European Union. This research finds that, ten years on, the economic cost of Brexit has been larger than analysts predicted and that prolonged policy uncertainty contributed importantly to the magnitude of the impact… We estimate that by 2025, Brexit had reduced UK GDP by 6% to 8%, with the impact accumulating gradually over time… Understanding the ways in which Brexit resulted in a drag on economic growth for the United Kingdom provides potential lessons about the costs of abruptly pulling back from the global economy for other countries… – “The Economic Costs of Brexit on the UK” (where there is much more detail)
* Donald Trump
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As we interrogate empty promises (and lest we think that history doesn’t rhyme), we might recall that it was on this date in 1856 that the Know Nothing Party (dba, “the American Party” and “Native American Party”) convened in Philadelphia to nominate its first presidential candidate. A nativist (and largely anti-Catholic) group composed of anti-immigrant/Old Stock breakaways from the American Republican and Whig parties, the Know Nothings nominated Millard Fillmore.
The last member of the Whig Party to serve as President, Fillmore had been a Congressional Representative from New York who was elected to the Vice Presidency in 1848 on Zachary Taylor’s ticket. When Taylor died in 1850, Fillmore became the second V.P. to assume the presidency between elections.
Fillmore’s signature accomplishment was the passage of the Compromise of 1850 passed, a bargain that led to a brief truce in the battle over slavery– but was so ill-conceived (it contained the Fugitive Slave Act) and unpopular that Fillmore failed to get his own party’s nomination for President in the election of 1852, which he sat out. Unwilling to follow Lincoln into the new Republican Party, he got the nomination of the Know Nothings– though he was not a member of the party and hadn’t sought it; he was out of the country during the convention. Fillmore finished third in the 1856 election. By the 1860 election, the Know Nothings were no longer a serious national political movement.
“Change threatens, and its possibility creates frightened, angry people*…
Ferdinand Mount has for years been a voice of the Tory establishment; he was described thusly by the (conservative) Telegraph:
Ferdinand Mount is a baronet who prefers not to use his title, a former nanny to the children of American millionaires who later headed Margaret Thatcher’s Downing Street Policy Unit, the most scrupulously intelligent man ever to be appointed as an editor by Rupert Murdoch, the nephew of Anthony Powell, and himself the author of a sequence of novels, ‘A Chronicle of Modern Twilight’, cherished by all those who like their fiction to be amusing, elegant and expletive-free.
So his thoughts on Brexit and the political situation in Britain are especially tangy:
Yes, this is a right-wing coup. It is duplicitous or self-deceiving to pretend that British politics is still proceeding more or less as normal. We are told that it is ‘hysterical’ to argue that Boris Johnson’s regime is in any way comparable to the nationalist dictatorships of yesterday or today. If this is a temptation, I shall happily succumb to it as a patriotic duty. By every standard of measurement, the Conservative Party has been transformed into Britain’s own BJP. ‘Optimism with a hint of menace’ was how the Sunday Times approvingly described Johnson’s first days in power – pretty much the way you might describe the first hundred days of Narendra Modi, or Donald Trump, or Benito Mussolini. Yes, he has come to power by strictly constitutional means. So did they all. It is how they govern when they get there that counts.
First, there was the brutality of the cabinet cull. Macmillan’s Night of the Long Knives pales by comparison, as do Margaret Thatcher’s most far-reaching reshuffles. Both Supermac and Thatcher took care to include up and coming ministers from all wings of the party. Johnson has included only yes-people, or placemen who have vowed omertà in advance. His rhetoric has already assumed a strongman strut. He tears up prepared speeches in favour of sunlit-uplands rants peppered with sentimental appeals to ‘the will of the people’. Implicit in this waffle is a barely concealed contempt for the judiciary and for Parliament. In his two spells in the Commons, Johnson has never bothered to shine, or indeed even to turn up much. His most significant promotion was that of Dominic Raab as foreign secretary, the only man to have issued a veiled threat to prorogue Parliament to get his gang’s way.
We are already beginning to take for granted Johnson’s abusive tone towards international institutions and foreign leaders, except those like Donald Trump who talk the same mixture of bluster and treacle. At home, we are promised more mega-bridges and bonanza buses, the sorts of project with which dictators always like to dazzle the plebs. Here, the author of Boris Island Airport and the garden bridge is at least staying true to form.
What still puzzles some people is that so many old-fashioned Tories should have fallen for such a seedy, treacherous chancer. In fact, I think Johnson has succeeded because of his amorality, not despite it. The transgressive sayer of the unsayable breaks through the carapace of conventional politics with a mixture of humour and vituperation, slang and high-flown rhodomontade. Clowning is part of the act for the leader who wants to reach beyond good and evil in the fashion Nietzsche recommended. A cartoon Superman? Yes, but they all are. See Charlie Chaplin, passim.
How long will he last – five weeks, five years? I have no idea. All I can say is what I see. And it is not a pretty sight. Our new skipper has consistently admitted that he would love to be prime minister ‘if the ball came loose from the back of the scrum’. But that isn’t what happened. He collapsed the scrum, deliberately and repeatedly, and we are all now sprawling in the mud.
From The London Review of Books‘ “How Bad Can It Get– Reflections on the State We’re In.”
Pair with this argument– rooted in the work of psychologist Karen Stenner, described in 2005 book The Authoritarian Dynamic— by Conor Friedersdorf (a libertarian, not a Democrat, and certainly not a progressive) arguing that it’s “authoritarian fear of difference” that best explains the intolerance, often manifesting as nationalism, sweeping the Republican Party: “What Ails the Right Isn’t (Just) Racism.” (And, on a similar note, this.)
{Photo above: source]
* “Change threatens, and its possibility creates frightened, angry people. They are found in their purest essence on the extreme right, but in all of us there is some fear of process, of change.”
―
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As we brace for more bluster, we might recall that it was on this date in 1961 that the German Democratic Republic (GDR, East Germany) began construction of the Berlin Wall, a guarded concrete barrier that physically and ideologically divided Berlin from 1961 to 1989.
View from the West Berlin side of graffiti art on the Wall in 1986
“Earth is ancient now, but all knowledge is stored up in her”*…
(Roughly) Daily is headed into a brief hiatus, as your correspondent is hitting the highways of his humid homeland. Regular service should resume on April 26. Meantime…
An illustration of the huge waterfalls cascading over the land bridge connecting Britain to Europe
Britain split from mainland Europe to become an island thanks to catastrophe — that might sound political, but in fact it’s geographic. Thousands of years before the UK opted to leave the European Union, a process called Brexit, a different separation occurred. Unlike the political one, it was relatively simple, and probably composed of just two stages.
First, a review of geography: England is separated from the rest of Europe by a body of water called the English Channel; the bit of water where England is closest to France is called the Dover Strait. But the strait wasn’t always there — it was likely created by two major erosion events, according to a study published today in Nature Communications. The first one likely happened around 450,000 years ago, around the same time Neanderthals first appeared in Europe. That’s when huge amounts of water spilled over from a large lake sitting at the edge of a massive ice sheet that stretched from Britain to Scandinavia. The second one may have occurred 160,000 years ago, when catastrophic flooding opened the Dover Strait. When the ice age ended and sea levels rose, water flowed into that gap. Just like that, Britain became an island…
More at “The first Brexit actually happened thousands of years ago.”
* Jeanette Winterson, Weight: The Myth of Atlas and Heracles
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As we cope with separation anxiety, we might spare a thought for Georges-Louis Leclerc, Comte de Buffon; he died on this date in 1788. A naturalist, mathematician, cosmologist, and encyclopédiste, Buffon formulated a crude theory of evolution, and was the first to suggest that the earth might be older than suggested by the Bible: in 1778 he proposed that the Earth was hot at its creation and, judging from the rate of its cooling, calculated its age to be 75,000 years, with life emerging some 40,000 years ago.
In 1739 Buffon was appointed keeper of the Jardin du Roi, a post he occupied until his death. There he worked on the comprehensive work on natural history for which he is remembered, Histoire naturelle, générale et particulière. He began in 1749, and it dominated the rest of his life. It would eventually run to 44 volumes, covering quadrupeds, birds, reptiles and minerals. As Max Ernst remarked, “truly, Buffon was the father of all thought in natural history in the second half of the 18th century.”
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