The American people are collateral damage in the president’s trade conflicts.
The Trump administration has been trying out a fresh line with the American public of late: Patriotism requires sacrifice.
As the president’s trade wars drag on, putting the economic bite on a growing number of Americans, his team is scrambling to put a nationalist gloss on his protectionist gamble, spinning it as a noble crusade in which the individual interest must be subordinated to the greater good.
Sure Americans “pay a little bit,” Mr. Trump acknowledged in a speech to real estate professionals in mid-May. “But it’s worth it.”
Concerned about losing support among rural voters caught in the tariff crossfire, he recently issued a Twitter proclamation that America’s “Patriot Farmers” would eventually be “the biggest beneficiaries of what is happening now.” Until then, he plans to subsidize impacted producers. Last Thursday, the Agriculture Department announced that it would provide up to $16 billion in farm aid, to be financed, the president has said, using the “massive Tariffs being paid to the United States for allowing China, and others, to do business with us.”
Mr. Trump failed to mention who pays those “massive Tariffs.” (Hint: Americans.) But he has never been one to let details get in the way of a good plotline.
The president’s chief economic adviser, Larry Kudlow, has been more frank about the United States-China showdown. “Both sides will suffer,” he said after trade talks with China broke down earlier this month. But the “possible improvement in trade and exports and open markets” make the suffering “worthwhile,” he added. “You’ve got to do what you got to do.”
Republican lawmakers, usually a free-trade-loving bunch, have taken up the cause as well. Senator Pat Toomey of Pennsylvania allowed that tariffs are “absolutely painful and dislocating,” but he reasoned that, someday, Americans might look back and say they were “worth the price.”
And when it comes to wrapping tariffs in the flag, no one can touch Senator Tom Cotton of Arkansas. Yes, the trade war will require “some sacrifices on the part of Americans,” he said, but the costs “will be pretty minimal” compared with those paid by American troops serving overseas and our “fallen heroes.”
Give Mr. Cotton debate points: Few would dispute that being killed in action is more of a hardship than paying a little extra for spark plugs or baseball mitts or live eels.
Fewer still would make such a tasteless comparison.
Previous presidents have appealed to Americans’ patriotism in wartime. In peacetime, President Kennedy’s 1961 inaugural entreaty — “Ask not what your country can do for you. Ask what you can do for your country.” — inspired an entire generation.
The Trumpian call to duty, however, is a particularly bold — even counterintuitive — choice for a president whose core message has always been that he can save anxious Americans from having to make tough choices, to adapt to economic changes or to face scary cultural shifts. His pledge to Make America Great Again has never been about helping move the nation into the future, but about easing it back into a more comforting past. In his capacity as Strong Leader, he has vowed to take care of everything, and it is all going to be “so easy.”
There is, in fact, no problem so big or so complex that Mr. Trump has not boasted of his ability to fix it quickly and painlessly.
- Repealing and replacing Obamacare with a better, cheaper system? Easy.
- Returning domestic manufacturing to its heyday? Easy.
- Lowering gas prices?
- Ending the drug problem?
- Dealing with China? Easy, easy and easy.
- Restoring cultural and economic security by erecting a big, beautiful border wall that Mexico will pay for? Piece. Of. Cake.
Of all Mr. Trump’s grandiose claims, his pledge to restore lost manufacturing jobs remains among the most heartbreaking. “Don’t move. Don’t sell your houses,” he soothed voters in the Rust Belt town of Youngstown, Ohio, in 2017. “They’re all coming back,” he promised of the jobs and prosperity.
In the meantime, Mr. Trump has no intention of abandoning his penchant for making impossible promises. At a rally in Montoursville, Pa., last week, he went on and on about how he had saved American industry, saying, “Remember the old days, we actually made our own product.” The president lamented the tens of thousands of factories that have been shuttered post-Nafta, before proclaiming triumphantly, “They’re all coming back!”
Are they, Mr. President?
Three decades ago, Donald J. Trump waged a public battle with the talk show host Merv Griffin to take control of what would become Mr. Trump’s third Atlantic City casino. Executives at Mr. Trump’s company warned that the casino would siphon revenue from the others. Analysts predicted the associated debt would crush him.
The naysayers would be proved right, but throughout the turmoil Mr. Trump fixated on just one outcome: declaring himself a winner and Mr. Griffin a loser.
As president, Mr. Trump has displayed a similar fixation in his standoff with Congress over leveraging a government shutdown to gain funding for a wall on the Mexican border. As he did during decades in business, Mr. Trump has
- insulted adversaries,
- undermined his aides,
- repeatedly changed course,
- extolled his primacy as a negotiator and
- induced chaos.
“He hasn’t changed at all,” said Jack O’Donnell, who ran a casino for Mr. Trump in the 1980s and wrote a book about it. “And it’s only people who have been around him through the years who realize that.”
..Mr. Trump was expected to sign off on the deal, but then came the suggestion from conservative critics that he had caved in to Democrats — that he was a loser. It was a perception Mr. Trump could not bear, and he quickly reversed course.
He also reverted to lifelong patterns in business. People who worked with him during those years say they see multiple parallels between Mr. Trump the businessman and Mr. Trump the steward of the country’s longest government shutdown.
His lack of public empathy for unpaid federal workers echoes his treatment of some construction workers, contractors and lawyers whom he refused to pay for their work on his real estate projects. The plight of the farmers and small-business owners wilting without the financial support pledged by his administration harks back to the multiple lenders and investors who financed Mr. Trump’s business ventures only to come up shortchanged.
And his ever-changing positions (I’ll own the shutdown; you own the shutdown; the wall could be steel; it must be concrete; then again, it could be steel) have left heads in both parties spinning. Even after his televised proposal on Saturday to break the deadlock, Mr. Trump has no progress to show.
That book, published in 1987, was intended to be an autobiography of Mr. Trump, who was 41 at the time. Mr. Schwartz said that he created the idea of Mr. Trump as a great deal maker as a literary device to give the book a unifying theme. He said he came to regret the contribution as he watched Mr. Trump seize on the label to sell himself as something he was not — a solver of complicated problems.
Rather, Mr. Schwartz said, Mr. Trump’s “virtue” in negotiating was his relentlessness and lack of concern for anything but claiming victory.
“If you don’t care what the collateral damage you create is, then you have a potential advantage,” he said. “He used
- a hammer,
- relentlessness and
- an absence of conscience
as a formula for getting what he wanted.”
In a brief telephone interview on Sunday, Mr. Trump was not specific in defending his tactics, but he described himself as successful in his chosen fields of real estate, entertainment and finally politics. “I ran for office once and I won,” Mr. Trump said.
The president’s supporters say he gets an unfair rap as a poor negotiator, saying that his style and unusual approach — and unwillingness to accept defeat even in the worst situations — have often had positive results. And in a Washington that doesn’t like outsiders, he has clearly forced his adversaries out of their comfort zones.
“President Trump’s success in business has translated into success as president,” Sarah Huckabee Sanders, the White House press secretary, said. “He’s
- ignited a booming economy with
- rising wages and
- historically low unemployment,
- negotiated better trade deals,
- persuaded our allies to contribute their fair share to NATO, and
- secured the release of American hostages around the world.”
.. The bank eventually settled with Mr. Trump, saving him from having to pay the $40 million. Mr. Trump expressed his gratitude to the lawyer who fought on his behalf by not fully paying his bill. “He left me with some costs,” said the lawyer, Steven Schlesinger.
From the time he built his first Manhattan apartment building, Mr. Trump left a string of unpaid tabs for the people who worked for him.
The undocumented Polish workers who did the demolition work for that first building, Trump Tower, eventually won a $1.375 million settlement. Since then, scores of lawyers, contractors, engineers and waiters have sued Mr. Trump for unpaid bills or pay. Typically, he responds by asserting that their work did not meet his standard.
That might sound familiar to furloughed federal workers. Mr. Trump recently retweeted an article, attributed to an anonymous senior official in his administration, arguing that 80 percent of federal workers do “nothing of external value” and that “furloughed employees should find other work, never return and not be paid.”
Mr. Trump has claimed, without evidence, that “maybe most” federal workers going without pay are “the biggest fan” of his use of the shutdown to fund a border wall. In ordering thousands back to work without pay, he has put the pain for the shutdown on them.
Mr. Trump has also embraced his business practice of giving the most latitude and trust to family members, no matter their prior experience.
He put his first wife, Ivana, a model, in charge of an Atlantic City casino and the Plaza Hotel in Manhattan. He put his younger brother, Robert, who had some background in corporate finance, in senior positions at the casinos. Not long after three of his children graduated from college, he vested authority in them over golf courses, hotels and licensing deals.
.. In the White House, Mr. Trump has increasingly leaned on his son-in-law, Jared Kushner, for guidance on dealing with Congress amid the current stalemate. Mr. Kushner, who like Mr. Trump is the son of a wealthy real estate developer, has not always impressed old hands on Capitol Hill.
.. With Democrats now in charge of the House of Representatives, Mr. Trump also has a new set of adversaries, and other old habits from his years in business have re-emerged.
Through his Twitter feed, he has verbally pummeled Senator Chuck Schumer, the minority leader, and tried to drive a wedge between Mr. Schumer and his fellow Democrat, Speaker Nancy Pelosi.
.. Barbara Res, who said she enjoyed much about working for Mr. Trump as a construction executive in the 1980s and 1990s, sees in Ms. Pelosi a new challenge to Mr. Trump’s lifelong tactics. One blind spot she observed was that Mr. Trump “believes he’s better than anyone who ever lived” and saw even the most capable of women as easy to run over.
“But there was never a woman with power that he ran up against, until Pelosi,” she said. “And he doesn’t know what to do with it. He’s totally in a corner.”
In the interview, Mr. Trump described Ms. Res, Mr. O’Donnell and Mr. Schwartz as disgruntled workers whom he had shunted aside, who had experience with him for relatively brief periods and who were simply using his name for attention.
During his years in business, Mr. Trump rarely displayed an interest in details or expert opinions that might have informed whether his plans would actually work. That pattern has also emerged in the shutdown dispute.
Thirty years ago, his claimed defeat of Mr. Griffin turned out to be a Pyrrhic victory.
Within months of completing construction on his third casino, the Trump Taj Mahal, he could not pay interest to the bondholders who had financed the project. Having overpaid and overleveraged himself on other deals, banks forced him to turnover or sell almost everything.
His wealthy father helped bail him out. But Mr. Trump blamed everyone else. He fired nearly all his top executives and stopped paying contractors who had built the casino.
In describing the border wall, Mr. Trump has expressed unending confidence in its efficacy. Others, including Representative Will Hurd, a Republican whose Texas district includes part of the border with Mexico, have described it as a tall speed bump, nearly useless without technology to spot illegal crossings immediately and dispatch border agents to quickly respond.
Mr. O’Donnell, the casino manager, said long-term consequences never concerned Mr. Trump. He was always willing to pay too much in order to get a deal signed so he could declare victory, he said.
“He just wants to get the deal,” Mr. O’Donnell said.
The lawmaker who is likely to lose the most in this mess is Senator Heidi Heitkamp of North Dakota, a red-state Democrat in a tough re-election race against Representative Kevin Cramer, who suggested that he’d vote for Justice Kavanaugh even if he had sexually assaulted Dr. Blasey.
.. Amy Chua, a professor at Yale Law School, became a target of social media scorn when The Guardian reported she told students that it was “not an accident” that Kavanaugh’s clerks “looked like models.” But that didn’t really spur a close look at Justice Kavanaugh’s hiring practices. Instead, Ms. Chua bore the brunt of the firestorm.
.. Ms. Chua and Lisa Blatt, a feminist attorney, have faced enormous pressure to denounce him, with reputational consequences that their male counterparts are unlikely to face.
.. A bigger man than Justice Kavanaugh would have apologized to Renate Schroeder Dolphin for turning her into a high school joke.
A more responsible Senate Judiciary Committee would have taken their claims seriously and demanded a thorough, fair investigation.
And all of us could direct the same energy and opprobrium that we level at moderate women at the men who prejudged the outcome of this process and proceeded accordingly.
After years of allowing the world’s largest social network to police itself, Congress and federal regulators are discussing some promising reforms.
Typically, the FTC can only impose penalties if a company has violated a previous agreement with the agency.
That means Facebook may well face a fine for the Cambridge Analytica breach, assuming the FTC can show that the social network violated the 2011 settlement. In that settlement, the FTC charged Facebook with eight counts of unfair and deceptive behavior, including allowing outside apps to access data that they didn’t need—which is what Cambridge Analytica reportedly did years later. The settlement carried no financial penalties but included a clause stating that Facebook could face fines of $16,000 per violation per day.
.. “I predict that if the FTC concludes that Facebook violated the consent decree, there will be a heavy civil penalty that could well be in the amount of $1 billion or more,” he said.
.. “Facebook rejects any suggestion that it violated the consent decree,”
.. Daniel J. Weitzner, who served in the White House as the deputy chief technology officer at the time of the Facebook settlement, says that technology should be policed by something similar to the Department of Justice’s environmental-crimes unit. The unit has levied hundreds of millions of dollars in fines. Under previous administrations, it filed felony charges against people for such crimes as dumping raw sewage or killing a bald eagle. Some ended up sentenced to prison.
.. “We know how to do serious law enforcement when we think there’s a real priority, and we haven’t gotten there yet when it comes to privacy,” Weitzner said.
.. Facebook has said it will introduce a new regime of advertising transparency later this year, which will require political advertisers to submit a government-issued ID and to have an authentic mailing address. It said that political advertisers will also have to disclose which candidate or organization they represent and that all election ads will be displayed in a public archive.
.. While she was at the commission, she urged it to consider what it could do to make internet advertising contain as much disclosure as broadcast and print ads. “Do we want Vladimir Putin or drug cartels to be influencing American elections?” she presciently asked at a 2015 commission meeting.
.. Even if it does pass such a rule, the commission’s definition of election advertising is so narrow that many of the ads placed by the Russians may not have qualified for scrutiny. It’s limited to ads that mention a federal candidate and appear within 60 days prior to a general election or 30 days prior to a primary.
.. Last year, ProPublica found that Facebook was allowing advertisers to buy discriminatory ads, including ads targeting people who identified themselves as “Jew haters,” and ads for housing and employment that excluded audiences based on race, age, and other protected characteristics under civil-rights laws.
.. Facebook has claimed that it has immunity against liability for such discrimination under section 230 of the 1996 federal Communications Decency Act, which protects online publishers from liability for third-party content.
.. But sentiment is growing in Washington to interpret the law more narrowly.
.. Jonathan Zittrain, wrote an article rethinking his previous support for the law and declared it has become, in effect, “a subsidy” for the tech giants, who don’t bear the costs of ensuring the content they publish is accurate and fair.
.. “Any honest account must acknowledge the collateral damage it has permitted to be visited upon real people whose reputations, privacy, and dignity have been hurt in ways that defy redress,” Zittrain wrote.