“Those who cannot remember the past are condemned to repeat it”. A powerful sentence by the philosopher George Santayana from his book ‘The Life of Reason’. These words ring in our heads strongly as each day follows, with new executive signatures, new political and new economic policy.
As President Trump proposes an extensive economic agenda based on protectionism and nationalism, we can’t help but think: have we not learnt from the past? At the center of this strategy are two defining policies. First, The Mar-a-Lago Accords, a proposed replacement for multilateral trade agreements with isolation and protectionism. Second, a fresh wave of tariffs on foreign imports, especially from China.
This isn’t America’s first time exposing itself to isolationism. The early 1930s saw the Smoot-Hawley Tariff Acts with tariffs rising to historic highs, aiming to protect American farmers and manufacturers, but resulting in a historic depression, triggering global retaliation, and collapsing international trade. Now, nearly a century later, we risk repeating that dangerous cycle.
While Trump supporters claim these measures will restore American strength, the truth is more complicated than it seems. Under all this exposure and changes lies a future in which Gen Z and those below will not inherit the prosperity that is promised through these tough actions, but instead we will inherit instability, more inflation, and global distrust in a neoliberal world where unity seems more prosperous than isolation. As we see Trump’s actions we must ask: Are we learning from history or just ignoring its lessons?
The Mar-a-Lago Accords represent a significant shift in the US economic policy. Developed by Trump’s advisors, Stephen Miran and Scott Bessent, the initiative seeks to devalue the US dollar, restructure national debt, impose tariffs to protect American industries from competition, and restructure international trade relations towards bilateral deals that prioritize American interests. (Hudson Bay Capital 2024) While on paper said structure sounds ideal for the American economy, the complexity behind it questions if these orders are established with greed and the desire of more power. Especially in a world where nations have learnt that cooperation aids more than hegemony.
While this might work for over a short period, it will not last long. For instance, the Plaza Accord of 1985 devalued the dollar but failed to correct trade imbalances. The concern is that such strategies may be self-defeating, giving long-term economic challenges for the US, which younger generations will be forced to manage.
This accord also proposes converting existing US treasury securities held by foreign governments into long term bonds, such as 100 year bonds, which would be sold at a discount and carry no interest payments. (Gordon, J 2025) This truly does raise concerns about our country’s long term economic stability. This resemblance of debt monetization risks compromising its fiscal credibility with a gigantic burden on future generations with increased debt. Economic isolation, declining global influence, and financial burden for future generations will not bring a prosperous future if the US steps back while the rest of the world moves forward. Is making America Great Again a short term thing to gain power with the current administration and then throw the problems to whomever is next?
Protectionist policies like Trump’s recent tariffs have led to market volatility and immediate retaliation from trade partners (especially China) while also rising consumer costs. We are risking a disruption to global supply chains especially with the neoliberal principles of free markets and open trade that the United States have exposed the world with through policies on international organizations, like the International Monetary Fund and its conditionalities. These ideas in our current international political system could hinder long term economic growth and expose a crisis in the world’s economy.
Though Trump has in his mind pushing the United States to become the strongest nation ever, he ignores the power that other countries have: retaliation. China could gain more power by imposing counter tariffs, expanding its Belt and Road Initiative, offering new possibilities of economic aid to countries as an alternative to international organizations such as the IMF. (Sundquist, J 2021) This not only helps China’s global strength but it could possibly surpass the US in international influence if current trends continue.
History has shown us that protectionism can lead to instability and downturns. We must learn from the past and continue pursuing cooperation, innovation, and global engagement to keep America at its best, not for a short term but for a long term. Greed gets us nowhere in the long run.
