
Victor Davis Hanson is one of the sharpest minds on the political battlefield right now, and he joined Charlie for a full hour to explain the Trump administration’s actions to anyone who may be confused right now. He discusses the thought process behind tariffs, America's supply chain, world powers at war, agriculture, and more. Watch ad-free on members.charliekirk.com! Get new merch at charliekirkstore.com!Support the show: http://www.charliekirk.com/supportSee omnystudio.com/listener for privacy information.
Chapter 1: Who is Victor Davis Hanson and why is he significant?
Hey everybody, an entire conversation with the legend, Victor Davis Hanson. If you're a little confused what's going on with the Trump administration, Victor Davis Hanson will make sense of it. He's a professor. He's a classicist. He's a philosopher. He understands these ideas and concepts and explains them so crisply. So find something good to do.
Find a nice beverage of your choosing, hopefully non-alcoholic, and listen to this episode and enjoy it. Because Victor Davis Hanson makes sense of a confusing world and helps you navigate the brilliance of the Trump administration. Victor Davis Hanson is one of the premier, if not the most important, public intellectuals of this generation. Get involved with Turning Point USA at tpusa.com.
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Chapter 2: What are Trump's tariff policies and their implications?
Joining us for the entire hour is the legend, someone that I listen to every week. I try to read almost everything he publishes, is Victor Davis Hanson, a senior fellow at the Hoover Institution at Stanford University. Victor, great to see you. Thank you for taking the time.
Thank you for having me.
So, Victor, you have had some phenomenal commentary lately on President Trump's tariff policy and how we should think about this through national security and the reindustrialization of America terms. Please explain to our audience what your take is on President Trump's tariff announcement.
Well, it's very incumbent upon him and his team to talk in terms of symmetry and parity and to emphasize that his wish would be a tariff-free world. But unfortunately, that's been only half true, that the United States is the only country in the world with such low tariffs and has essentially a free market. And that was...
during the post-war era when we were rebuilding Europe and deterring the communist world. But 80 years later, the United States is facing $37 trillion in debt, $2-3 billion in interest per year, a $1.7 trillion dollar budget deficit and almost over most years, over a billion dollar, excuse me, a trillion dollars in trade deficits. So what we're asking for is not asymmetry, but just parity.
And that would mean I don't even think Donald Trump and his team have said we need parity right now. Just to take one example, they would say to Mexico, you were part of a free trade North American continent. What happened? You're running 50 and then 80 and then 100, then 150. Now you're running 177. billion-dollar annual trade deficit.
You're a conduit for the communist Chinese to get around tariff policies, which are asymmetrical in their favor. And this is in addition to you have $63 billion coming to your country in remittances, most of whom are people here, are from whom people are here illegally, and they're subsidized by our own welfare system. And then there's some $20 to $30 billion in excess
that's estimated to come from smuggling in the cartel's fentanyl trade, which was killed. That's not the behavior of a good neighbor, and we're just asking for parity.
And I think he could apply that logic and tone, vocabulary, diction to all of these Europe, China, maybe not China because we expect it from them, but Europe, Canada, Mexico, and not let them get away with the idea that we're waging a unilateral trade war when we're just asking for parity and reciprocity.
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Chapter 3: How did tariffs shape American history?
And let's go much deeper than the superficial analysis that, oh, it caused the Great Depression.
Well, to put it another way, We didn't have an income tax. It was envisioned in 1913, but ratified 1916. So then that begs the question, where did the federal government get their money? They had no other source of revenue other than tariffs, essentially. And that was... It wasn't just...
the idea of protecting domestic industries, but it was also a revenue generating mechanism for the federal government. And one of the reasons, to be frank, why people did not want an income tax is because they felt that government by needs would be small and manageable. the federal government would be if it relied on tariff income rather than everybody paying a percentage of their wages.
That was never envisioned by the founders. But tariffs were pretty much part and parcel of the American project until about 1916. And then all of a sudden, we substituted them with this vast new influx of the IRS and income tax revenue. And then people said, well, they're kind of obsolete now.
But they were designed both to fund the federal government, but fund a small federal government, and also to protect vulnerable industries. But remember what the opposition is saying, Charlie, the free but not fair opposition. They're saying... Well, we believe that free trade must be maintained at all costs without exception.
And when you say it hurts Americans, Americans lose jobs in American industries or offshore or outsourced, they say, no, no, it doesn't matter. because the subsidies of our foreign governments are not sustainable if they're dumping product here below the cost of production. And we found that not to be true. China's been fine doing it for almost a half century.
Then they said, well, it lowers consumer prices. because you're bringing in cheap stuff that domestic people have to adjust to. That may or may not be true, but if the other side is being subsidized and your own producers are not being subsidized, then it's a way to put people into bankruptcy. And I can attest for that as somebody who farmed
during the Reagan period when EU agricultural produce was subsidized and dumped in this country. And we were told that that was good for us because it would make us more efficient. And that's the third fallacy.
They say, well, if you allow foreign stuff to come in without a tariff, even though it's being produced at below the cost of production, then you're going to have to compete with it and that'll make you lean and mean. But there's only a certain point where you can compete when you're losing money.
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Chapter 4: Why did free trade become dominant in US policy?
So why this was, the trade was destroying manufacturing and assembly in the middle classes. Then the service classes, and I'm talking about insurance and law and media and academia and and all sorts of investment we were pretty good at. And now we had under globalization, not a 300 million person market at the time, but 6 billion.
And so these areas, anybody who could have a product that was globalized, and that was mostly in these areas, made out like bandits and they sold it to the middle class by saying, well, you have 401ks. That's right.
So maybe you're not making what you want, but you've got all this investment now because, and the high tech as well, you know, we're selling a billion Apple computers or iPhones, and this is all good for you. But the problem was if you had muscular labor, that could be outsourced or offshored, and it was, then it was.
So they said, well, we're gonna provide people with high-tech communication devices, social media services, financial services, law services, academia, all that stuff. But the muscles of the United States will be over with, and that's kind of passe. So even in the case of agriculture, millions of acres were being farmed in Latin America and Asia, and industries were offshore and outsourced.
And the idea was that the middle class, and you could see it when Hillary Clinton went to West Virginia and she said, we're going to get you guys out of business.
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Victor Davis Hanson with us. Sorry to cut you off. Please continue. I love this idea that you were getting into, that it became almost... I like the word passe, but it was just not acceptable or desirable to work with one's hands. That upper middle class society, no one wanted the children, no one in suburban society wanted their kids to go work construction.
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Chapter 5: What is the impact of deindustrialization on the US?
ship it to you this week or not. And so we realized that our grandfathers were not stupid, that they wanted to be self-sufficient in the stuff of civilization, food, energy, housing, materials, ships, military equipment.
And so I think we're kind of... We're questioning in that, that we thought we were so wealthy that the financial sectors and the globalization was going to carry us, and now suddenly... we're $37 trillion in debt. And people are saying, well, maybe our grandfathers were not that bad off because they were producing the stuff that civilization and life needs.
So I couldn't agree with that more. And what President Trump is trying to course correct it. I suppose I'm going to ask you a speculative question. Can we become a body, not just a brain economy? Is it possible?
It is because you see that it's not just a bunch of people mindlessly on an assembly line putting widgets together. It requires the most sophisticated robotics, artificial intelligence. And those are areas that we excel in. So when you start to see these people building these huge power plants, mostly by natural gas and AI plants, that technology can be married with assembly.
So even though we have a fossilized 1.6 fertility rate, you can get an American and marry him with machines in assembly, in manufacturing, even in things like housing now, where you see entire walls made in factories, you know, the studs and everything, and then brought to the site and they're pre-assembled. And so we're very innovative and it's time that we could do both very well. And
It's kind of interesting what Trump is doing. He's kind of emulating very quickly the War Production Board. You know, we were the 17th largest army in the world. At the end of 1945, we had 12 million people, almost the size of the Soviet Union's army, and we had the largest navy in the world. But it was the largest navy ever. in the sense of greater than all the navies put together.
We build 140 aircraft carriers of various classifications. And what I'm getting at is what Roosevelt did, the socialist, he said, I'm not going to be a socialist anymore during the war. You, Henry Ford, you, Henry Kaiser, you, William Knudsen, you go out and make bombers and liberty ships. And make a profit, but you've got to have the United States' interest.
And I think that's what Trump's doing with Andreessen and David Sachs and even to a degree Zuckerberg and Elon Musk. He said, I will protect you when the Europeans go after you or the Chinese cheat on you. But I want you to invest here and I want your abilities to be in service of America. And I want your rockets and your Facebook and your investments and anything you make, create jobs here first.
And it's kind of an appeal to a nationals patriotic element. I think a lot of the billionaire entrepreneurs are starting to react to it.
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Chapter 6: Can the US rebuild its manufacturing sector?
There is a fair amount of angst and anxiety in the farmer community right now about these tariffs. I know you touched on this previously. I was at Oklahoma State University in Stillwater, Oklahoma, a couple of days ago, and a couple of farmers came up and they were all Trump guys wearing Trump gear and they were very worried.
They said that these tariffs very well might raise the price of equipment coming in, that they might not be able to export their goods. Please, as a farmer, give us your take on Trump's tariff announcement. How should we think about this?
Well, I think the way to look at it is long-term and short-term. Almost every country that we export with, we're running a deficit with. I mean, in terms of now as a farmer and, say, almonds with India, and they have tariffs, and they're very tough people. So if they retaliate, the easiest thing they're going to do is say, we're not going to allow almonds in without a 40%.
And they already have tariffs, but not that high. But long term, if you were able to achieve parity and we took a short term hit and you were able to tell India and China and the Europeans, we're not going to let in this, this, this, unless you let our soybeans or almonds or cheese in at the same rate that we let yours. And it would be it would be kind of fantastic. It really would.
And then I don't know to the degree which he is going to retaliate by putting tariffs on imported foodstuffs. The United States, it's not the largest producer of export food in volume, but it is in value. That's pretty amazing when you think we only have $335 million, $40 million, and China's got $1.4 billion.
But so what I'm getting at is half of everything we produce, we sell abroad and it's very pricey. It's things like high volume pistachios that are worth a lot of money or walnuts or processed cheese, things like that. It's not just grain, which is essential, corn or sorghum. But we have a lot of really specialty crops that the world likes.
And people are paranoid about that, especially because you can live without almonds and you can live without pistachios.
So if they think that they're going to hurt a particular sector of the American, and that's what they do, when they negotiate with Trump, they look at particular red state or areas that are his supporters and they want to target that type of commodity for these small towns and rural areas.
The farmer base overwhelmingly supported President Trump. And I believe long term it is going to they're going to have incredible prosperity. They also get heavy machinery discounts. I know that the president is looking at that in the upcoming tax bill. Victor, you also you mentioned something a little while just previously.
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Chapter 7: How is Trump attempting to revitalize American industry?
Yeah, I mean, they told us that you had to have comprehensive immigration reform, which was basically amnesty in their view. And if you didn't, you couldn't close the border. And he understood that the border was open because they wanted the border open, and they wanted 12 million people in here, both for cheap labor and for future political constituents and for larger federal programs, greater...
taxes, more redistribution. And he just simply said, if you obey the law, and that means you fortify the border and you secure it and you turn people back and there's no catch and release and no refugee status once you're here, but you have to do it, you could stop it and create, more importantly, a psychological sense of deterrence.
And when he started to say things like, I have an executive order that if you come across the border illegally, you can't come back for 10 years. That was very brilliant because it told people, oh, I'm here and these people are serious. They might catch me and then I can't come back legally. So you're actually seeing a little bit of reverse immigration.
I think they really need to enhance that because it's something people had talked about in the past, but they thought no president would ever dare do it.
Victor Davis Hanson, stay there. Can you remind people it's Victor Hanson dot com. Is that correct? And people can. Yes, I am a paid subscriber. Tell our audience very quickly about 30 seconds about that.
Well, I have a website, victorhansen.com. For $5 a month, you can get my usual stuff. It's two columns a week. I do 11 videos of various statuses there. But I also have about 2,000 words only for subscribers and a video only for subscribers. And it's fresh. I've done it for four years. Haven't missed a week yet.
So every week, two long essays and a 10-minute video in addition to all the other stuff at the website.
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