Category Archives: Economics

The Price of Power: Are Tariffs America’s Modern Military Blunder?

“Never interrupt your enemy when he is making a mistake.” – Napoleon Bonaparte

Throughout history, pivotal moments have reshaped the global balance of power—not only through military conflict but also through strategic missteps in policy, diplomacy, and economics. A recent History Hit article highlights some of the greatest military mistakes in history, such as Crassus’ catastrophic defeat at Carrhae, where overconfidence, misjudgment of the enemy, and environmental ignorance led to one of Rome’s most humiliating losses. These cautionary tales echo eerily in today’s geopolitical landscape, especially in the realm of economic warfare.

As the United States doubles down on protectionist policies and tariffs—particularly under the current administration—there’s a growing concern that this approach may not just harm short-term trade balances but fundamentally alter the global power hierarchy.

The Tariff Trap: Echoes of Strategic Overreach

Crassus believed a swift strike against the Parthians would cement his legacy and expand Roman power. But what followed was a lesson in hubris: his troops, ill-prepared for desert warfare and blindsided by superior Parthian tactics, were decimated. The battle didn’t just cost Rome a legion; it shifted the balance of power in the East and emboldened one of its greatest rivals.

Fast-forward to today’s economic theater, and we see the U.S. taking a similarly aggressive stance—this time not with legions, but with tariffs. Aimed largely at China, but also impacting allies and neutral states, these tariffs are designed to correct trade imbalances and protect domestic industries. Yet, critics argue they may have the opposite effect: damaging global supply chains, triggering retaliatory measures, and accelerating the rise of alternative trade blocs that exclude the U.S.

A Self-Inflicted Isolation?

Just as Crassus underestimated the adaptability and strength of the Parthians, the U.S. may be underestimating how quickly other nations can pivot. Countries like China, India, Brazil, and members of the European Union are increasingly forging their own trade alliances, investing in regional self-sufficiency, and moving away from reliance on U.S.-dominated systems like the dollar-based financial architecture.

The unintended result? The U.S. risks isolating itself in a multipolar world. Much like the Roman Empire found itself checked by Parthian resistance, the U.S. could face a world where its economic leverage is no longer unquestioned. Tariffs might win temporary concessions but lose the longer war of global influence.

When Economic Warfare Backfires

Military historians often point to a failure to adapt as the root cause of strategic disasters. In economic terms, adaptation means recognizing the limits of unilateral action in a globalized world. While the administration’s tariffs may play well to domestic audiences—just as Crassus’ ambition did among the Roman elite—the global repercussions could be severe.

Already, we’re seeing fractures: foreign investment pulling away, key allies distancing themselves, and strategic rivals forming new coalitions. As with the Roman-Parthian conflict, a misstep now may not seem fatal—but it could catalyze a power shift that becomes irreversible.

The Rise of Alternative Power Centers

Historically, economic pressure campaigns have often led to innovation and resistance rather than submission. When the British Empire imposed tariffs and restrictive trade policies on the American colonies, the result was not compliance, but revolution. Likewise, today’s U.S. tariffs may incentivize the very independence and resilience among rival economies that they seek to suppress.

China, for example, has responded to tariffs not just with reciprocal measures but with strategic investments in Africa, Southeast Asia, and Latin America. Its Belt and Road Initiative is quietly redrawing global trade routes, offering infrastructure and financing in exchange for long-term influence. By contrast, the U.S.’s transactional and punitive approach to trade may be reducing its appeal as a partner.

Moreover, countries targeted by U.S. tariffs are increasingly engaging in “de-dollarization,” shifting reserves to euros, yuan, or gold, and conducting trade in non-dollar currencies. This weakens the U.S. dollar’s global hegemony, long a cornerstone of American power. If that pillar falls, the repercussions could be enormous—raising borrowing costs, undermining fiscal flexibility, and eroding confidence in U.S. leadership.

Lessons from Napoleon and the Continental System

The perils of economic overreach are not unique to the U.S. or Rome. Napoleon Bonaparte’s Continental System, aimed at crippling Britain by banning European trade with it, is another stark example. Rather than bringing Britain to its knees, it backfired spectacularly, harming France and its allies while boosting British trade with other global partners. It also provoked resistance from within Napoleon’s empire, contributing to its eventual unraveling.

The U.S. may now be embarking on its own version of a Continental System. Efforts to economically isolate China—through sanctions, tech bans, and tariff walls—risk creating a bifurcated global economy. But in doing so, the U.S. could be sealing itself off from markets, innovations, and influence that are shifting eastward.

Domestic Politics and Short-Term Thinking

One key reason economic strategies go awry is the short-termism driven by domestic politics. Leaders prioritize popular moves that yield immediate gains, even if they incur long-term costs. Crassus sought glory; Napoleon pursued dominance; today, leaders may be seeking electoral wins or media headlines.

Tariffs appeal to a certain political base, often associated with nationalist or populist movements. They create the image of a strong, assertive leader defending national interests against foreign exploitation. But while they may boost approval ratings temporarily, they often mask deeper economic vulnerabilities. Industries protected by tariffs may become less competitive, consumers face higher prices, and the innovation that comes from global competition may stall.

The Ripple Effects: Allies, Rivals, and the Global Commons

Perhaps the most underappreciated aspect of the current tariff strategy is how it affects U.S. allies. The assumption that friendly nations will remain loyal regardless of economic strain may be dangerously optimistic. Tariffs have been levied not just against rivals but also against longstanding partners like Canada, the EU, and South Korea. These actions chip away at diplomatic goodwill and create space for competitors like China to step in with more cooperative offers.

Furthermore, the weaponization of trade sets a precedent. If the U.S. can impose tariffs and sanctions for strategic reasons, so can others. This leads to a world where economic interdependence—once a force for peace and prosperity—becomes a source of suspicion and volatility. The global commons of trade, finance, and communication, painstakingly built over decades, could fracture into warring economic blocs.

The implications extend beyond commerce. Shared challenges like climate change, pandemics, and cybersecurity require collective action. An increasingly divided economic world undermines the possibility of unified responses. If each country retreats into its own economic fortress, the global community may find itself ill-equipped to face the transnational threats of the 21st century.

Strategic Patience vs. Tactical Aggression

The choice facing the United States is not between tariffs or surrender. It is between tactical aggression and strategic patience. Tactical aggression offers immediate gratification: the image of toughness, the appearance of winning. Strategic patience demands investment in long-term capability, trust-building with allies, and tolerance for short-term discomfort in exchange for future security.

Countries that have succeeded in shaping global systems have historically chosen the latter path. The post-World War II U.S. helped build institutions like the IMF, World Bank, and WTO not just out of altruism but to ensure a stable environment for its own prosperity. That model worked—arguably too well, as it enabled the rise of competitors. But tearing down the system that sustained U.S. leadership may be more self-defeating than adjusting it to new realities.

Strategic patience also means crafting trade policies that align with national values—protecting labor rights, environmental standards, and technological sovereignty—without resorting to blunt instruments. Tariffs can be part of that toolkit, but they must be wielded with precision, transparency, and foresight.

Innovation, Not Isolation

In a knowledge-based global economy, innovation is the ultimate currency of power. Tariffs may protect legacy industries, but they do little to foster the next generation of breakthroughs. In fact, they often hinder innovation by increasing input costs, disrupting supply chains, and discouraging collaboration.

To maintain global leadership, the U.S. must invest in education, research, and infrastructure. It must attract talent from around the world and create ecosystems where ideas can flourish. Isolationist policies undercut these goals. The more the U.S. turns inward, the less attractive it becomes as a destination for investment, talent, and creativity.

Tech ecosystems are already becoming more fragmented. China is building its own chips, cloud services, and social platforms. The EU is developing digital sovereignty strategies. The risk is not just economic decoupling, but intellectual and technological divergence that reduces shared standards and mutual benefit.

From Carrhae to Currency Wars

The parallels between Crassus’ doomed campaign and today’s trade tensions are not perfect, but they are instructive. Both reflect moments where ambition overtook prudence, and where the assumption of superiority led to vulnerability. Just as Carrhae signaled a shift in Roman fortunes, today’s tariff wars could mark the beginning of a new global order—one in which American dominance is no longer assured.

But unlike Crassus, today’s leaders have the benefit of hindsight. They can study history, learn from its missteps, and course-correct before irreversible damage is done. The question is not whether the U.S. has the power to lead, but whether it has the wisdom to wield that power wisely.

The world is watching. The path chosen now may determine not just the next trade cycle, but the very contours of global power in the decades to come. If history has shown anything, it is that the price of overreach is often paid not in battles lost, but in influence squandered. The challenge before the United States is not merely to defend its markets, but to secure its legacy.

African America’s March 2025 Jobs Report – 6.2%

OVERALL UNEMPLOYMENT: 4.2%

AFRICAN AMERICA: 6.2%

LATINO AMERICA: 5.1%

EUROPEAN AMERICA: 3.7%

ASIAN AMERICA: 3.5%

Analysis: European Americans unemployment rate slips lower to 3.7 percent. Asian Americans increased 30 basis points and Latino Americans decreased 10 basis points from February, respectively. African Americans unemployment rate increased 20 basis points from February.

AFRICAN AMERICAN UNEMPLOYMENT RATE BY GENDER & AGE

AFRICAN AMERICAN MEN: 6.1%

AFRICAN AMERICAN WOMEN: 5.1% 

AFRICAN AMERICAN TEENAGERS: 20.8%

AFRICAN AMERICAN PARTICIPATION BY GENDER & AGE

AFRICAN AMERICAN MEN: 69.3%

AFRICAN AMERICAN WOMEN: 60.9%

AFRICAN AMERICAN TEENAGERS: 30.9%

Analysis: African American Men saw a increase in their unemployment rate by 60 basis points and African American Women after three months of unchanged unemployment rate saw a increase by 30 basis points in March, respectively. African American Men increased their participation rate in March by 100 basis points, their five month high. African American Women decreased their participation rate in March by 180 basis points, their lowest participation rate in the past five months. African American Teenagers unemployment rate increased by 160 basis points. African American Teenagers saw their participation rate increase by 30 basis points in March, their highest participation rate in the past five months for the second straight month.

African American Men-Women Job Gap: African American Women currently have 430,000 more jobs than African American Men in March. This is a decrease from 793,000 in February. This is the lowest ever reported gap by HBCU Money since we began tracking the data.

CONCLUSION: The overall economy added 228,000 jobs in March while African America lost 176,000 jobs. This was led by African American Women losing 266,000 jobs in March dropping their employed to the lowest number in the past five months. From Reuters, “The U.S. economy added far more jobs than expected in March, but President Donald Trump’s sweeping import tariffs could undermine the labor market’s resilience in the months ahead amid sagging business confidence and a stock market selloff.”

Source: Bureau of Labor Statistics

The Lack Of Marriage Is Holding Back African American Wealth – And How HBCUs Can Help

“Paradise is one’s own place, One’s own people, One’s own world, Knowing and known. Perhaps even Loving and loved.” – Octavia Butler

The declining marriage rates among African Americans are increasingly recognized as a significant factor holding back wealth accumulation within the community. This trend has profound implications for economic stability and intergenerational wealth transfer. Understanding the connection between marriage and wealth, along with relevant statistics, sheds light on this critical issue.

Married couples generally experience greater financial stability than single individuals. According to the U.S. Census Bureau, married couples tend to have higher median household incomes. In 2021, the median household income for married couples was approximately $100,000, compared to about $60,000 for single-parent households, which disproportionately include African American families.

Research has shown that marriage contributes significantly to wealth accumulation. A study by the Institute for Family Studies found that households headed by married couples have about three to four times the wealth of those headed by single individuals. Specifically, Black married couples had a median net worth of $131,000 in 2019, compared to only $29,000 for Black single individuals. This disparity highlights the financial advantages of marriage in building wealth.

From an economic development perspective, marriage plays a crucial role in the transfer of wealth between generations. Households with married parents are better positioned to pass down assets. A report from the Federal Reserve in 2019 indicated that only 45% of Black households had any wealth to pass on, compared to 70% of white households. The lack of marriage in the African American community limits opportunities for families to create and sustain intergenerational wealth.

It also has acute impact on social development within the African American community. Marriage can provide emotional and social stability, which is vital for sound financial decision-making. Couples often collaborate on budgeting, saving, and investing, leading to better financial outcomes. According to a Pew Research Center study, married couples are more likely to engage in long-term financial planning, further enhancing their wealth-building capacity.

The decline in marriage rates among African Americans is linked to systemic issues, including economic inequality, high incarceration rates, and historical trauma. The National Center for Family & Marriage Research reports that the marriage rate for African Americans has dropped significantly over the past few decades, from 60% in the 1960s to just 29% in 2021. Addressing these systemic barriers is essential for promoting stable relationships and supporting marriage as a pathway to wealth.

Cultural perceptions around marriage also play a role. While many African Americans value family and community, there may be less emphasis on traditional marriage structures. However, promoting awareness of the economic benefits of marriage within the community could encourage individuals to consider its advantages for wealth accumulation and stability.

Ways HBCUs Can Help Promote Black Marriage

HBCUs can play a pivotal role in promoting marriage within the African American community by implementing several strategies:

  • Educational Programs: HBCUs can offer workshops and seminars focused on relationship skills, financial literacy, and the benefits of marriage. By educating students on effective communication, conflict resolution, and financial planning, these programs can foster healthier relationships.
  • Mentorship and Counseling: Establishing mentorship programs that connect students with African American married couples can provide positive role models. Counseling services that focus on relationship dynamics and conflict resolution can also support students in building strong partnerships.
  • Community Engagement: HBCUs can organize community events that celebrate marriage and family life, encouraging students to engage with positive narratives around marriage. These events can include discussions, panels, and social activities that promote the value of committed relationships.
  • Collaborative Research: HBCUs can engage in research initiatives that explore the factors influencing marriage rates in the African American community. Understanding these dynamics can inform policies and programs aimed at supporting healthy relationships.
  • Scholarships and Incentives: Creating scholarship programs for students who participate in marriage enrichment programs can incentivize students to invest in their relationships while also promoting the value of African American marriage within the community.
  • Marriage Endowments: HBCU alumni can partner with the UNCF and Thurgood Marshall Fund to create an endowment that provides head start capital for African American marriages among their alumni. This head start capital can be disbursed at once or over a set number of years ensuring that couples get off to a financially stable start.

The decline in marriage rates among African Americans poses significant challenges to wealth accumulation and economic stability. By addressing the underlying issues and promoting the benefits of marriage, HBCUs can play a crucial role in fostering healthy relationships within the community. Implementing educational programs, mentorship opportunities, and community engagement initiatives can help strengthen marriage as a pathway to wealth and empower future generations to build a more financially secure future.

There is no African American community without the African American family and there is no African American family without African American marriage. At the very center of anything we discuss must be the institutional stabilization of the African American family and therefore African American marriages and partnerships. Right now the foundation of community and institution building is in crisis with no real way to stem the tide of the crisis. Building in more institutional support services for mental, physical, and nutritional health are just a few of the things needed along with financial stability programs would go a long way to the stability of African American marriage and partnerships. Generational wealth or generational poverty is on the line and great sacrifice must be made if we want the former and not more of the latter.

African America’s February 2025 Jobs Report – 6.0%

OVERALL UNEMPLOYMENT: 4.1%

AFRICAN AMERICA: 6.0%

LATINO AMERICA: 5.2%

EUROPEAN AMERICA: 3.8%

ASIAN AMERICA: 3.2%

Analysis: European Americans unemployment rate pushes higher to 3.8 percent, a return to its five month high. Asian Americans decreased 50 basis points and Latino Americans increased 40 basis points from January, respectively. African Americans unemployment rate decreased 20 basis points from January. This is the second lowest rate in the past five months.

AFRICAN AMERICAN UNEMPLOYMENT RATE BY GENDER & AGE

AFRICAN AMERICAN MEN: 5.5%

AFRICAN AMERICAN WOMEN: 5.4% 

AFRICAN AMERICAN TEENAGERS: 19.2%

AFRICAN AMERICAN PARTICIPATION BY GENDER & AGE

AFRICAN AMERICAN MEN: 68.3%

AFRICAN AMERICAN WOMEN: 62.7%

AFRICAN AMERICAN TEENAGERS: 30.6%

Analysis: African American Men saw a decrease in their unemployment rate by 140 basis points and African American Women remain unchanged in February, respectively. African American Men decreased their participation rate in February by 70 basis points. African American Women increased their participation rate in February by 20 basis points, their highest participation rate in the past five months. African American Teenagers unemployment rate increased by 970 basis points. African American Teenagers saw their participation rate increase by 530 basis points in February, their highest participation rate in the past five months.

African American Men-Women Job Gap: African American Women currently have 793,000 more jobs than African American Men in February. This is a decrease from 806,000 in January.

CONCLUSION: The overall economy added 151,000 jobs in February while African America added 80,000 jobs. From CNBC, “The report comes amid efforts from Elon Musk’s Department of Government Efficiency to pare down the federal government, starting with buyout incentives and including mass firings that have impacted multiple departments. Though the reductions likely won’t be felt fully until coming months, the efforts are beginning to show. Federal government employment declined by 10,000 in February though government payrolls overall increased by 11,000, the BLS said. Many of the DOGE-related layoffs happened after the BLS survey reporting period, meaning they won’t be included until the March report. Outplacement firm Challenger, Gray & Christmas reported earlier this week that announced layoffs under Musk’s efforts totaled more than 62,000.”

Source: Bureau of Labor Statistics

African America’s January 2025 Jobs Report – 6.2%

OVERALL UNEMPLOYMENT: 4.0%

AFRICAN AMERICA: 6.2%

LATINO AMERICA: 4.8%

EUROPEAN AMERICA: 3.5%

ASIAN AMERICA: 3.7%

Analysis: European Americans unemployment rate pushes lower to 3.5 percent, its lowest rate in the past five months for the second month in a row. Asian Americans increased 20 basis points and Latino Americans decreased 30 basis points from December, respectively. African Americans unemployment rate increased 10 basis points from December. This is the second highest rate in the past five months.

AFRICAN AMERICAN UNEMPLOYMENT RATE BY GENDER & AGE

AFRICAN AMERICAN MEN: 6.9%

AFRICAN AMERICAN WOMEN: 5.4% 

AFRICAN AMERICAN TEENAGERS: 9.5%

AFRICAN AMERICAN PARTICIPATION BY GENDER & AGE

AFRICAN AMERICAN MEN: 69.0%

AFRICAN AMERICAN WOMEN: 62.5%

AFRICAN AMERICAN TEENAGERS: 25.3%

Analysis: African American Men saw an increase in their unemployment rate by 130 basis points and African American Women remain unchanged in January, respectively. African American Men increased their participation rate in January by 80 basis points bringing a halt to a four month decline. African American Women increased their participation rate in January by 10 basis points. African American Teenagers unemployment rate decreased by an unprecedented 1,070 basis points. African American Teenagers saw their participation rate decrease by 420 basis points in January, their lowest participation rate in the past five months.

African American Men-Women Job Gap: African American Women currently have 806,000 more jobs than African American Men in January. This is an increase from 757,000 in December.

CONCLUSION: The overall economy added 143,000 jobs in January while African America added 234,000 jobs. From Yahoo Finance, “Recent data has shown the labor market slowing but not rapidly deteriorating, as layoffs remain low. Economists have largely argued the recent string of labor market data fits the “broadly stable” labor market narrative Fed Chair Jerome Powell described in his most recent press conference on Jan. 29. “It’s a low-hiring environment,” Powell said. “So if you have a job, it’s all good. But if you have to find a job, the job-finding rate, the hiring rates have come down.”

Source: Bureau of Labor Statistics