Will Trump's populism turn America into Venezuela?

Think about the core beliefs and promises of populist economics: The economy will boom as never before, and there are no constraints on economic policy

People wait in line to deposit money in Caracas, Venezuela.
(Image credit: REUTERS/Marco Bello)

It wasn't so long ago that Wall Street had a fever — and the only cure was more Trumponomics.

In December, frothy investors claimed stocks were surging over the mere anticipation of Donald Trump and the Republican Congress cutting taxes and regulation like crazy. In a viral LinkedIn post, hedge-fund billionaire Ray Dalio went positively metaphysical. He argued that Trump's pro-business attitude could "ignite animal spirits" across corporate America and "spark a virtuous circle" in which capital pours into America, boosting the economy and attracting even more capital.

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James Pethokoukis

James Pethokoukis is the DeWitt Wallace Fellow at the American Enterprise Institute where he runs the AEIdeas blog. He has also written for The New York Times, National Review, Commentary, The Weekly Standard, and other places.