Tariffs - Potholes in Milton Keynes

There are potholes on the roads of Milton Keynes. Whether on the roundabouts or the straight bits. So, we’ve turned right at the third roundabout, and it looks like we are in monetarist heaven.Last time we talked about John Maynard Keynes. This time our friendly economists have asked us to talk about Milton Friedman.Let’s keep this simple. Friedman was a champion of the free market and unofficial procurement whisperer from beyond the grave.

Spoiler: He didn’t like tariffs.

📈 Friedman 101: Hands Off the MarketMilton’s guiding philosophy? The market knows best. Intervene too much and bad things happen - like inflation, inefficiency, and providing government loans to Blockbuster, Blackberry and Atari. He believed in:

• Minimal meddling

• Maximum competition

• And absolutely no gold stars for economic protectionism

If a business can’t compete without help, should it even be there? Friedman says no.

💸 Tariffs: The Free-Market Buzzkill

To Friedman, tariffs were economic crimes against efficiency. Let’s walk through the charges:

1. They Rob the Consumer

   Tariffs make stuff cost more. So you, the procurement guru, get to explain why the client’s widgets are now 23% pricier. Thanks, trade barriers. We loved having price transparency but now it’s making us feel a little ill.

2. They Reward Underachievers

   By shielding “domestic champions,” we create innovation-averse fortresses. That manufacturing plant still using faxes? Yep, except now they’re “strategically vital.”

3. They Trigger Global Tantrums

   They taxed your steel, so you tax their soybeans or corn syrup. Suddenly, your procurement plan looks like a bar brawl with spreadsheets. Economic retaliation is the world’s least productive pastime, after drone-based bombing (unless you export drones or bombs).

4. They’re Philosophically Rude

   Friedman was big on choice. Want to buy your circuit boards from South Korea? You should be able to. But the tariffs say: “Sorry, you’re only allowed the American ones - the ones that come with a slight markup and a six-month lead time.” Hey, let’s be patriotic.

🧠 What Would Milton Say About Trump's Tariffs? He’d probably raise an eyebrow and mutter something about "government overreach in a star-spangled hat. "Friedman wouldn’t be impressed by:

• Distorted market signals

• Inflated domestic prices

• Exporters losing customers faster than Blockbuster, Blackberry and Atari

• Procurement teams requiring new batteries in their huge desk calculators

🛠️ How Procurement Can Keep It Milton-Approved

Get yourself signed up to the Friedman fan club, and try this:

• Pursue clarity - demand cost breakdowns like a polite but persistent auditor

• Diversify suppliers - not because it’s trendy, but because it’s smart

• Love free-trade agreements - they’re the economic equivalent of a secret tunnel beneath the tariff wall

• Avoid sheltered suppliers - If they only exist because of a tariff, maybe don’t contract beyond Q4.

• And, never let underperforming suppliers live on life support just because they’re local.

And to sum it all up: it looks right now like tariffs how having a positive impact on the US economy...but that can’t hold, can it? In one corner: John Maynard Keynes, champion of demand stimulation and government “encouragement.”In the other: Milton Friedman, free-market crusader with a devotion to price signals and laissez-faire dreams.

⚔️ Keynes v Friedman: Procurement Says No table of truth 

Theory	Tariffs Are...	Procurement Mood	Suggested Response
Keynes	Temporary stabilizers	Mild concern 😬	Short-term localisation, monitor demand, don’t panic
Friedman	Structural distortions	Existential dread 😱	Diversify, optimise, never cuddle inefficiency

💼 So What Should Procurement Actually Do?

While Keynes and Friedman argued from opposite ends of the intellectual spectrum, you, dear procurement reader, sit squarely in the middle - reconciling trade theory with trade terms, and macroeconomics with micro-level panic.

So here's your tactical middle path:

• 🔍 Monitor macro conditions: If unemployment’s up and demand’s down - some tariff strategies might align

• 📊 Get real-time data models: Show the actual impact, not the theoretical one

• 🧩 Build diverse supplier networks: So you’re not overexposed when macroeconomic theory becomes practice

• 📄 Add clauses like a contract ninja: Tariff triggers, force majeure, and Friedman-friendly exit routes

• 🌍 Think global, act strategic: Because if Keynes and Friedman taught us anything, it’s that the economy will swing - and you need to swing with it

We promise not to mention tariffs again. Not until the next time. But if someone brings up tariffs, just smile and say:“Depends who’s asking, tariffs may come and go, but procurement’s job is to deliver value and use the available economic levers to our advantage.To get out of Milton Keynes we’ll need to use both the straight roads and the roundabouts”.Just make sure you avoid the potholes.

Note: Milton Keynes is a purpose-built city in Buckinghamshire, England, built in 1967 as the largest of the “new towns" and designed to alleviate housing congestion in London.Milton Keynes features a “unique” grid road network that separates residential areas from major traffic routes, with many roundabouts. Some say it is easy to get lost in the road system as it all basically looks the same. You’ll never leave.