Then there’s the money-bags people.  Trump has promised an economic policy based on cutting taxes, cutting regulations, increasing domestic energy production, and imposing high tariffs on all and sundry.  He has said that he will do all this without unleashing a new round of inflation or causing interest rates to rise.  That’s not an easy combination to make.  Trump has nominated Scott Bessent for Secretary of the Treasury.[1]  He’s a billionaire hedge-fund manager.  So Wall Street is greatly relieved.  They see him as the adult in the room.[2]

Bessent appears to be a late-adapter of tariffs.  Sort of the threshold cost of entry for an econ job with the Addams administration.  The Trump-Biden tariff war against China has had an effect.  By 2023, imports from China had fallen to 14 percent of total imports.  That is the lowest level in almost twenty years.  Conversely, imports from Mexico[3] rose to 15.4 percent and imports from Canada hit 13.6 percent of the total.[4]  Yet Trump has been threatening high tariffs on Mexican and Canadian imports.  These will push up consumer prices, complicating Bessent’s job.  Bessent is said to hope that the mere threat of more tariffs will compel foreign countries to adjust their policies to America’s advantage. 

Bessent is going to have some competition for the control of economic policy.  For one thing, Howard Lutnick wanted that job, but had to settle for Secretary of Commerce.  That still gives him a voice in economic policy.  He may—or may not—resent Bessent getting the job.  People don’t climb to the heights of Wall Street without having sharp elbows. 

Then Russell Vought, head of the Office of Management and Budget (OMB) in the first Addams administration, got a second bite at the apple.  Trump has described him as “an aggressive cost cutter and deregulator.”  Media critics agreed, reporting that Vought had called for cutting $2 trillion from Medicaid, and $400 billion from food stamps.  Elon Musk and Vivek Ramaswamy are going to be running a non-governmental, purely advisory “Department of Government Efficiency” (DOGE).[5]  It looks like OMB will be the place where the recommendations go for implementation. 

Another tool in the kit for the administration may be “impoundment.”[6]  This idea arose during the Nixon administration.  Basically, just because the Legislative Branch appropriates money for some purpose doesn’t mean that the Executive Branch has to spend it.  In 1974, Congress passed a law saying the President couldn’t “impound” funds.  Trump says the law is unconstitutional.  He may have the Supreme Court to back him up. 

            Finally, Trump nominated Congresswoman Lori Chavez-DeRemer to lead the Department of Labor.  She’s pro-union and Teamsters President Sean O’Brien had recommended her for the slot.  He nomination alarmed the Wall Street Journal, perhaps because it suggested that Trump’s support for the working-class voter isn’t purely rhetorical.  Better that the administration should “spur economic growth and a robust job market” in hopes that some of the money will reach workers. 

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[1] “Treasury: Bessent choice reassures Wall Street,” The Week, 6 December 2024, p. 32. 

[2] See: H.R. McMaster, John Bolton, Bill Barr, etc., etc. 

[3] Possibly from China by way of Mexico. 

[4] “The bottom line,” The Week, 6 December 2024, p. 32. 

[5] At least until Musk quits in disgust or he runs off Ramaswamy because Musk doesn’t play well with others. 

[6] “What next?” The Week, 6 December 2024, p. 4.