Trump’s Diminishing Power and Rising Rage

None of Trump’s extremist policy ideas has received public support. The public opposed last year’s

  1. Republican-backed corporate tax cut, Trump’s
  2. effort to repeal the Affordable Care Act (Obamacare), his
  3. proposed border wall with Mexico, the decision to
  4. withdraw from the Iran nuclear agreement, and the
  5. imposition of tariff increases on China, Europe, and others.
  6. At the same time, contrary to Trump’s relentless promotion of fossil fuels (coal, oil, and gas), the public favors investments in renewable energy and remaining in the Paris climate agreement.

.. Trump has tried to implement his radical agenda using three approaches.

1) The first has been to rely on the Republican majorities in the two houses of Congress to pass legislation in the face of strong popular opposition. That approach succeeded once, with the 2017 corporate tax cut, because big Republican donors insisted on the measure, but it failed with Trump’s attempt to repeal Obamacare, as three Republican senators balked.

.. 2)  The second approach has been to use executive orders to circumvent Congress. Here the courts have repeatedly intervened, most recently within days of the election, when a federal district court halted work on the Keystone XL Pipeline, a project strongly opposed by environmentalists, on the grounds that the Trump administration had failed to present a “reasoned explanation” for its actions. Trump repeatedly and dangerously oversteps his authority, and the courts keep pushing back.

.. 3) Trump’s third tactic has been to rally public opinion to his side. Yet, despite his frequent rallies, or perhaps because of them and their incendiary vulgarity, Trump’s disapproval rating has exceeded his approval rating since the earliest days of his administration. His current overall disapproval rating is 54%, versus 40% approval, with strong approval from around 25% of the public. There has been no sustained move in Trump’s direction.

.. In the midterm elections, which Trump himself described as a referendum on his presidency, the Democratic candidates for both the House and Senate vastly outpolled their Republican opponents. In the House races, Democrats received 53,314,159 votes nationally, compared with 48,439,810 for Republicans. In the Senate races, Democrats outpolled Republicans by 47,537,699 votes to 34,280,990.

.. Summing up votes by party for the three recent election cycles (2014, 2016, and 2018), Democratic Senate candidates outpolled Republican candidates by roughly 120 million to 100 million. Nonetheless, the Republicans hold a slight majority in the Senate, where each state is represented by two senators, regardless of the size of its population, because they tend to win their seats in less populous states, whereas Democrats prevail in the major coastal and Midwestern states.

Wyoming, for example, elects two Republican senators to represent its nearly 580,000 residents, while California’s more than 39 million residents elect two Democratic senators. 

Without control of the House, however, Trump will no longer be able to enact any unpopular legislation. Only policies with bipartisan support will have a chance of passing both chambers.

.. On the economic front, Trump’s trade policies will become even less popular in the months ahead as the American economy cools from the “sugar high” of the corporate tax cut, as growing uncertainty about global trade policy hamstrings business investment, and as both the budget deficit and interest rates rise. Trump’s phony national-security justifications for raising tariffs will also be challenged politically and perhaps in the courts.

.. True, Trump will be able to continue appointing conservative federal judges and most likely win their confirmation in the Republican-majority Senate. And on issues of war and peace, Trump will operate with terrifyingly little oversight by Congress or the public, an affliction of the US political system since World War II. Trump, like his recent predecessors, will most likely keep America mired in wars in the Middle East and Africa, despite the lack of significant public understanding or support.

.. Nonetheless, there are three further reasons to believe that Trump’s hold on power will weaken significantly in the coming months. First, Special Counsel Robert Mueller may very well document serious malfeasance by Trump, his family members, and/or his close advisers. 

.. Second, the House Democrats will begin to investigate Trump’s taxes and personal business dealings, including through congressional subpoenas. There are strong reasons to believe that Trump has committed serious tax evasion (as the New York Times recently outlined) and has illegally enriched his family as president (a lawsuit that the courts have allowed to proceed alleges violations of the emoluments clause of the Constitution). Trump is likely to ignore or fight the subpoenas, setting the stage for a major political crisis.

.. Third, and most important, Trump is not merely an extremist politician. He suffers from what author Ian Hughes has recently called “a disordered mind,” filled with

  • hate,
  • paranoia, and
  • narcissism.

According to two close observers of Trump, the president’s grip on reality “will likely continue to diminish” in the face of growing political obstacles, investigations into his taxes and business dealings, Mueller’s findings, and an energized political opposition. We may already be seeing that in Trump’s erratic and aggressive behavior since the election.

.. The coming months may be especially dangerous for America and the world. As Trump’s political position weakens and the obstacles facing him grow, his mental instability will pose an ever-greater danger. He could explode in rage, fire Mueller, and perhaps try to launch a war or claim emergency powers in order to restore his authority. We have not yet seen Trump in full fury, but may do so soon, as his room for maneuver continues to narrow. In that case, much will depend on the performance of America’s constitutional order. 

Trump Is in Triage Mode

The president’s offensive on immigration is linked to his party’s struggle to build support for key pieces of its economic agenda.

GOP candidates appear to have lost faith that they can win the argument with voters over the key policies in their economic agenda, especially the longtime effort to repeal the Affordable Care Act and the huge tax cut Trump signed late last year.

“They are ending up on the culture war because we have blunted them on taxes and they can’t talk about health care,” Democratic pollster Ben Tulchin said. “So they are left with one card to play.”

.. While Republicans first expected the tax cut to anchor their midterm campaign, the public reaction to it has soured over the election year. An early October CNBC survey found that while 54 percent of Americans believe that the law provided “a lot of” benefits to large corporations, and 52 percent think that it similarly benefited the wealthy, the share who believe that it helped other groups is much smaller: 15 percent saw such gains for small business, 11 percent for average taxpayers, and a measly 8 percent for themselves personally. In campaigns across the country, Democrats have directly attacked the tax cut as a giveaway to the wealthy that will eventually compel Republicans to cut Social Security and Medicare.

Are Trump’s Policies Hurting Long-Term US Growth?

When it comes to economic performance, US presidents have considerably more influence over long-term trends than over short-term fluctuations. And it is by this standard that Donald Trump’s administration should be judged.

President Donald Trump regularly thumps his chest and claims credit for each new uptick of the fast-growing US economy. But when it comes to economic performance, US presidents have considerably more influence over long-term trends than over short-term fluctuations.
.. Still, it is not easy to speed up a $20 trillion economy, even by running a budget deficit of nearly $1 trillion, as Trump’s administration is doing.
.. In a cantankerous political environment, it is not easy to think about the long term. But, thanks to the magic of compound interest, measures that marginally raise long-term growth matter a lot. For example,
  • the transportation deregulation policies of President Jimmy Carter’s administration in the late 1970s set the stage for the Internet retail revolution.
  • President Ronald Reagan’s massive tax cuts in the 1980s helped restore US growth in the ensuing decades (but also exacerbated inequality trends). And
  • President Barack Obama’s efforts (and before him President George W. Bush’s) to contain the damage from the 2008 financial crisis underpin the strong economy for which Trump wants to take full credit.
.. The end-2017 corporate tax reform was one of those rare instances where the US Congress comprehensively streamlined and improved the US’s Byzantine tax system, though the corporate tax rate should have been set at 25%, not 21%.
.. Obama would likely have been very happy to pass a similar bill. But, during his presidency, the Republican-controlled Congress insisted that any proposal had to be “revenue neutral” even in the short term, which is a tough political hurdle for any fundamental tax reform.
..  a wide range of studies – from the work of the late economist David Landes to more recent research by MIT’s Daron Acemoglu and the University of Chicago’s James A. Robinson – find that
.. institutions and political culture are the single most important determinants of long-term growth.
.. political culture in the US may take years; if so, the economic costs could be considerable.
.. Moreover, in accordance with the administration’s disdain for science, the proposed budgets for basic research, including for the National Institutes of Health and the National Science Foundation, were reduced sharply (fortunately, the US Congress rejected the cuts).
And anti-trust enforcement, needed to counter excessive monopoly power in many parts of the economy, is essentially dormant.
That will exacerbate inequality over the long term; Trump’s coal mines and trade tariffs are at best band-aids on a bullet wound.
.. many of the regulations that Trump is targeting ought to be strengthened, not eliminated. It is hard to imagine that gutting the Environmental Protection Agency and withdrawing from the Paris climate agreement are helpful for long-run growth, given that the costs of cleaning up pollution later vastly exceed the costs of mitigating it today.
.. As for financial regulation, the reams of new rules adopted after the 2008 financial crisis have been a dream come true for lawyers. Rather than try to micromanage banking, it would be far better to ensure that shareholders have more “skin in the game,” so that big banks are more inclined to avoid excessive risk. On the other hand, neutering existing legislation without putting anything adequate in its place sets the stage for another financial crisis.
.. although the US economy is indeed growing rapidly, the full extent of Trump’s economic legacy might not be felt for a decade or more. In the meantime, should a downturn come, it will not be Trump’s fault – at least according to Trump, who is already gearing up to blame the US Federal Reserve for raising interest rates and ruining all his good work.

Obama was right: He came too early

Former Obama White House official Ben Rhodes, in his forthcoming memoir, tells of a moment of doubt the first African American president had after the election of Donald Trump on a campaign dominated by white grievance.

“Sometimes I wonder whether I was 10 or 20 years too early,” President Barack Obama said in the passage, first reported thisweek by Peter Baker in the New York Times.

I hate to say it, but I think the former president was correct.

Ten or 20 years from now, America will be much closer to the majority-minority nation it is forecast to become in 2045. A racist backlash to a black president wouldn’t matter as much.

But what was naively proclaimed in 2008 as post-racial America was instead kindling for white insecurity, and Trump cunningly exploited and stoked racial grievance with his subtle and overt nods to white nationalism. He is now leading the backlash to the Obama years and is seeking to extend white dominion as long as possible, with attempts to stem immigration, to suppress minority voting and to deter minority census participation.

.. These are the death throes of white hegemony. And they are ugly.This week alone:

.. ● Trump had no criticism for Roseanne Barr after her rebooted ABC show was canned because she called former Obama adviser Valerie Jarrett a cross between the Muslim Brotherhood and “Planet of the Apes.” Instead, Trump used the occasion to demand an apology of his own from ABC for unrelated slights.● Trump rallied supporters in Nashville with many of the race-based themes of his campaign, saying Mexico is “going to pay for the wall and they’re going to enjoy it.” He led the crowd in denouncing Latino “animals” who join the MS-13 gang, and repeated his message to black people: “What the hell do you have to lose?”

● Trump pardoned Dinesh D’Souza, the Indian American provocateur who had called Obama a “boy” from the “ghetto” and a “grown up Trayvon,” had dismissed Rosa Parks, and was prolific in his use of the n-word. This follows Trump’s previous pardon of anti-immigrant provocateur Joe Arpaio.

● Trump’s new secretary of state, Mike Pompeo, hosted the previously shunned Hungarian foreign minister, following his government’s reelection on a campaign of anti-Semitism and anti-Muslim demagoguery. The ruling party won by demonizing the Jewish Hungarian American George Soros, a Holocaust survivor.

.. And, finally, a new study by academic researchers in California found that opposition to welfare — another Trump fixation — has grown among white Americans. The researchers concluded that “whites’ perceptions that minorities’ standing is rising can produce periods of ‘welfare backlash’ ” — but only if they believe the programs primarily benefit minorities.

.. the main predictor of support for Trump is racial anxiety — far more than economic anxiety.
.. he tax cut, in the first quarter, contributed toan 8 percent increase in corporate earnings but only a 1 percent increase in consumer spending — the lowest increase in five years — and even though coal jobs are disappearing faster than before, wages remain stuck and the promised return of manufacturing hasn’t happened.