Why corporate America loves Donald Trump

American executives are betting that the president is good for business. Not in the long run

MOST American elites believe that the Trump presidency is hurting their country. Foreign-policy mandarins are terrified that security alliances are being wrecked. Fiscal experts warn that borrowing is spiralling out of control. Scientists deplore the rejection of climate change. And some legal experts warn of a looming constitutional crisis.

.. Bosses reckon that the value of tax cuts, deregulation and potential trade concessions from China outweighs the hazy costs of weaker institutions and trade wars.

.. the investment surge is unlike any before—it is skewed towards tech giants, not firms with factories. When it comes to gauging the full costs of Mr Trump, America Inc is being short-sighted and sloppy.

.. The benefits for business of Mr Trump are clear, then: less tax and red tape, potential trade gains and a 6-8% uplift in earnings.

.. During the Obama years corporate America was convinced it was under siege when in fact, judged by the numbers, it was in a golden era, with average profits 31% above long-term levels.

Now bosses think they have entered a nirvana, when the reality is that the country’s system of commerce is lurching away from rules, openness and multilateral treaties towards arbitrariness, insularity and transient deals.

.. so far this month 200-odd listed American firms have discussed the financial impact of tariffs on their calls with investors. Over time, a mesh of distortions will build up.

.. American firms have $8trn of capital sunk abroad; foreign firms have $7trn in America; and there have been 15,000 inbound deals since 2008. The cost involved in monitoring all this activity could ultimately be vast. As America eschews global co-operation, its firms will also face more duplicative regulation abroad. Europe has already introduced new regimes this year for financial instruments and data.

.. The expense of re-regulating trade could even exceed the benefits of deregulation at home. That might be tolerable, were it not for the other big cost of the Trump era: unpredictability. At home the corporate-tax cuts will partly expire after 2022.

.. Bosses hope that the belligerence on trade is a ploy borrowed from “The Apprentice”, and that stable agreements will emerge. But imagine that America stitches up a deal with China and the bilateral trade deficit then fails to shrink, or Chinese firms cease buying American high-tech components as they become self-sufficient

.. Another reason for the growing unpredictability is Mr Trump’s urge to show off his power with acts of pure political discretion.

  • He has just asked the postal service to raise delivery prices for Amazon, his bête noire and the world’s second-most valuable listed firm.
  • He could easily strike out in anger at other Silicon Valley firms—after all, they increasingly control the flow of political information.
  • He wants the fate of ZTE, a Chinese telecoms firm banned in America for sanctions violations, to turn on his personal whim.

.. When policy becomes a rolling negotiation, lobbying explodes. The less predictable business environment that results will raise the cost of capital.

.. Mr Trump expects wages to rise, but 85% of firms in the S&P 500 are forecast to expand margins by 2019

.. Either shareholders, or workers and Mr Trump, are going to be disappointed.

.. In a downturn, American business may find that its fabled flexibility has been compromised because the politics of firing workers and slashing costs has become toxic.

.. American business may one day conclude that this was the moment when it booked all the benefits of the Trump era, while failing to account properly for the costs.

The Anti-Christian Alt-Right

The Perverse Thought of Right-Wing Identity Politics

.. “The Church has become the number one enemy of Western Civilization. Soon the only people left in Christianity will be third-world immigrants and a handful of self-hating whites.”

..Hillary Clinton devoted a speech in Nevada to deploring its influence on the election. “These are race-baiting ideas. Anti-Muslim and anti-immigrant ideas, anti-woman—all key tenets making up an emerging racist ideology known as the ‘alt-right,’” she charged.

.. Clinton could not name a single member of a movement that, she warned, imperiled American democracy

.. The movement exists almost entirely among anonymous users of the Internet. It has no institutions, no money, no political representation, and no traditional media.

.. It enjoys the close attention of the liberal establishment it seeks to discredit and the conservative movement it intends to displace.

.. “Everything we have seen over the past year suggests that the alt-right will be around for the foreseeable future.”

.. The alt-right purports to defend the identity and interests of white people, who it believes are the compliant victims of a century-long swindle by liberal morality. Its goals are not conventionally conservative.

It does not so much question as mock standard conservative positions on free trade, abortion, and foreign policy, regarding them as principles that currently abet white dispossession.

.. Its creed, in the words of Richard Spencer, is “Race is real. Race matters. Race is the foundation of identity.”

.. the alt-right represents something more nefarious, and frankly more interesting, than white identity politics.

.. The alt-right is anti-Christian.

.. Its leading thinkers flaunt their rejection of Christianity and their desire to convert believers away from it.

.. Greg Johnson, an influential theorist with a doctorate in philosophy from Catholic University of America, argues that “Christianity is one of the main causes of white decline” and a “necessary condition of white racial suicide.”

.. it argues that Christian teachings have become socially and morally poisonous to the West.

.. Its intellectual birth is marked by the 1918 publication of the first volume of Oswald Spengler’s The Decline of the West.

.. While the movement is often accused of advocating racial supremacy, its appeal is more often to cultural difference. A generation tired of multicultural pieties

.. A cultural relativist, Spengler rejects as a “ridiculous distortion” any view that privileges European thought or history.

.. “Each culture possesses its own standards, the validity of which begins and ends with it.

.. Spengler therefore sees the world as divided into fundamentally different cultures, whose identities he interprets in morphological terms. Cultures are like plants

.. They live through a determined cycle of birth, growth, maturity, and death. During its lifespan, a culture gives expression to the animating “form”

.. Spengler had no scholarly expertise in non-Western cultures (his advanced studies were in mathematics), and Decline of the West is frequently nonsense as both history and sociology. But its interpretations of cultural artifacts and their hidden symbolic meanings are often brilliant and have enchanted readers for a century.

.. All cultures are unique, but some are more unique than others. “We men of the Western culture are an exception,” Spengler claims. At the heart of his book is an interpretation of the culture he namedFaustian,” a term widely used in the intellectual circles of the alt-right.

.. a single idea permeates the arts and sciences of the West. Its distinctive mark is an intense striving for “infinity.”

.. our culture has uniquely sought to see all things in relation to the highest or most distant horizons, which, in turn, it seeks to surpass and extend.

  • The vaults of medieval cathedrals, the
  • discovery of perspective in painting, the
  • exploration of the New World, the
  • development of orchestral music, the
  • invention of the telescope and
  • calculus

—in Spengler’s story, all express the Faustian drive toward transcendence.

.. He argues that there is no Christianity without Western civilization. He arrives at this conclusion by claiming the West begins not with ancient Greece or Rome, but with the high Middle Ages and the birth of scholasticism, Gothic architecture, and polyphony.

.. Its cultural achievements are not testimonies to faith in God. They are the monuments of Faustian man’s attempt—in speculation, stone, glass, and sound—to propel himself into infinity. Of this aspiration, Spengler maintains, “the Gospels know nothing.”

..  In the minds and hands of Europeans, Christianity became a religion that affirmed the unceasing expansion of human freedom, power, and knowledge.

.. There is no biblical god for Faustian man, but there is high Christian culture, which is a tribute to his identity.

.. To a young man lacking a strong identity he says, “This heroic culture is your inheritance, and yours alone. You stand in a line of men who have attained the highest excellences and freely endured the hardest challenges.

.. Albert the Great, Cortés, Newton, Goethe, the Wright brothers all carry this daring spirit, and so do you.”

.. in his 1933 book Hour of Decision, he foresaw the rise of democratic “Caesars” and growing racial animosity. Who will give birth to the next great culture? Not Europeans

.. Spengler predicted the future would belong to the race that had preserved its “strength” in face of the rising “colored menace.”

  • If Spengler is the alt-right’s cultural critic,
  • Julius Evola is its political mystic.
    • Umberto Eco mockingly called him “the magician,” and the
    • future Pope Paul VI condemned his writings in a Vatican newspaper
    • Evola is the most right-wing thinker possible in the modern world. There is nobody to his right, nor can there be. His influence on the alt-right is detectable in one of its most controversial features: its rejection of human equality.
    • “We don’t belong to the liberal family,” writes popular blogger Hunter Wallace. “Nothing is less self-evident to us than the notion that all men are created equal.” Here is the movement’s clearest dispute with conventional conservatism
    • The alt-right denies that constitutional democracy is worthy of principled veneration. For Evola, its popular acceptance is a sign we are living in a spiritual dark age.

The basic problem with modernity is “desacralization,” the collapse of spiritual meaning in daily life. Work, family, and citizenship are no longer saturated with spiritual importance, but are understood in functionally secular terms.

.. materialism “kills every possibility

.. Spengler’s fundamental flaw was that he “lacked any understanding of metaphysics and transcendence,” which led him to conclude that human cultures are irreducibly different.

.. Evola believed more or less the exact opposite, arguing that there are timeless and universal principles that have provided the foundation for every true civilization. He referred to these perennial truths as “Tradition,” and he traced the disorders of modernity to our loss of contact with it.

.. No, the world had been slouching into spiritual poverty ever since the eighth century b.c., when the world of Tradition began to disappear.

.. Revolt Against the Modern Worldclaimed that these primordial societies—whose existence can be accessed only by way of myth and legend, not critical scholarship—all operated on the same principles.

.. In a traditional culture, every aspect of human life, every social activity, role, and caste, was dedicated to the service of an otherworldly order; indeed, they were ritual pathways into it. “According to Tradition,” Evola imagines, “every authority is fraudulent, every law unjust and barbarous, every institution is vain and ephemeral unless . . . they are derived from above.”

.. His key claim is that traditional societies were hierarchically ordered under an absolute ruler, who embodied the sacral order itself.

..  Men Among the Ruins, he argued that political conservatism is intrinsically impossible in a democratic age. True political order can never come from below; it must always be imposed from above.

.. only a transformative leader could elevate humanity out of its degraded state. Such a leader could not appeal to the masses—this was the mistake of the vulgar fascisms of Mussolini and Hitler—but must inspire submission through lofty contempt for democratic norms and popular tastes.

“The presence of superior individuals bestows on a multitude . . . a meaning and a justification they previously lacked,” Evola wrote. “It is the inferior who needs the superior, and not the other way around.”

Evola was less clear about what this sacred authority looked like than what stood in the way of its realization.

.. The problem is that Catholicism forbids the sacred state. And a state without absolute spiritual unity is no state at all.

.. Benoist is the leading theorist of the European New Right, an intellectual movement that began in France in the late 1960s

.. however, no return is necessary if we simply move beyond Christianity altogether. Evola did not believe in a personal deity, but his criticisms of Christianity were political rather than theological. With Benoist, the alt-right becomes explicitly and confessionally anti-Christian.

.. took its inspiration from the failed “conservative revolution” of Weimar Germany.

Carl Schmitt, Ernst Jünger, Arthur Moeller van den Bruck, and Spengler were its chief figures

.. Most of its members, including Spengler, took sides against the Nazi regime, but they also sought a path for the West beyond the twin evils of American democracy and Soviet communism. Benoist comes from this anti-liberal tradition

.. Benoist is the leading theorist of the European New Right, an intellectual movement that began in France in the late 1960s

.. attempt to envision a post-Christian future for people of European descent.

.. his 1981 work On Being a Pagan

.. Paganism’s central claim is simple: that the world is holy and eternal. “Far from desacralizing the world,” Benoist tells us, paganism “sacralizes it in the literal sense of the word, since it regards the world as sacred.”

Paganism is also a humanism. It recognizes man, the highest expression of nature, as the sole measure of the divine.

.. God does not therefore create men; men make gods, which “exist” as ideal models that their creators strive to equal.

.. Benoist’s case against Christianity is that it forbids the expression of this “Faustian” vitality.

.. It does so by placing the ultimate source of truth outside of humanity, in an otherworldly realm to which we must be subservient.

.. He accuses Christianity of crippling our most noble impulses. Christianity makes us strangers in our own skin, conning us into distrusting our strongest intuitions. We naturally respect beauty, health, and power, Benoist observes, but Christianity teaches us to revere the deformed, sick, and weak instead.

.. Benoist’s theology is in the service of a political warning, and it is this, more than his Nietzschean posturing, that attracts the alt-right.

.. Christianity is unable to protect European peoples and their cultures.

.. Christianity is not our religion.

..  Benoist means that Christianity renders Western culture morally lethargic and culturally defenseless.

.. its universalism poisons our attachments to particular loyalties and ties.

.. “If all men are brothers,” Benoist claims, “then no one can truly be a brother.”

.. Politics depends on the recognition of both outsiders and enemies, yet the Christian Church sees all people as potential members, indeed potential saints.

.. Christianity imparted to our culture an ethics that has mutated into what the alt-right calls “pathological altruism.”

.. Its self-distrust, concern for victims, and fear of excluding outsiders—such values swindle Western peoples out of a preferential love for their own.

.. Christianity today is the enemy of the West and the race that created it

.. we ought to see ourselves through the eyes of our pagan critics

.. They distort many truths, through both malice and ignorance, and lead young men into espousing views and defending authors they scarcely understand.

.. “Christianity provides an identity that is above or before racial and ethnic identity,” Richard Spencer complains.

.. invoking race as an emergency replacement for our fraying civic bonds.

.. identity politics on the left is a response to the same erosion of belonging.

.. we lack a compelling civic theology for the twenty-first century—a theology of the nation

.. In its absence the alt-right will continue to grow.

.. A nation will become an idol, however, if its cultural inheritance is not oriented toward, and inwardly transformed by, a divine inheritance.

.. “The inheritance we receive from Christ,” the late pope argued, “orients the patrimony of human native lands and cultures toward an eternal home land.”

.. It speaks of tradition, while transmitting no traditions. It guards a false patrimony, while destroying real ones

..  Race offers no inheritance, and its mere preservation reflects no human achievement.

.. Our stories, art, music, institutions, and religious traditions—unlike race—are transmitted only through special efforts of human intelligence and love. They are a bequest of the spirit, not blood.

.. The alt-right speaks a seductive language. Where liberalism offers security and comfort, the alt-right promises sacrifice and conflict.

.. . For Christians, the problem with Faustian man is not the vaunting heroism of his aims. It is the pitiable smallness of his goals.

We are not meant to merely aspire to the infinite. We are called to participate in it—to be, in a word, deified.

Faust could not overcome death. Through Christ, Christians already have.

Finding the Way Forward on Iran

the question of what Iran is. This isn’t just about whether it’s a dictatorship. What kind of dictatorship? To get the answer right is to know what kind of pressure can change its behavior or break its back.

The conventional wisdom is that it’s a dictatorship with democratic characteristics, and that it’s riven between hard-liners who want to make it more repressive and militant and reformists who want to make it less. Western policy, according to this analysis, should do what it can to encourage and reward the latter at the expense of the former.

But the analysis fails to explain why, for instance,

  • the number of executions in Iran rose under the ostensibly reformist leadership of President Hassan Rouhani.
  • It doesn’t account for Foreign Minister Mohammad Javad Zarif laying a wreath in honor of Imad Mugniyeh, the Hezbollah terrorist responsible for killing hundreds of Americans. And it doesn’t explain
  • Tehran’s hyperaggressive foreign policy in the wake of the 2015 nuclear deal, which was supposed to inaugurate its opening to the rest of the world.

A better way of describing Iran’s dictatorship is as a kleptotheocracy, driven by impulses that are by turns doctrinal and venal.

.. Note how quickly the provincial protesters turned their sights on the supreme leader: Maybe it’s because they know better than most how thoroughly he’s fleecing them.

.. a supposedly charitable foundation controlled by Khamenei, known as Setad, had assets worth an estimated $95 billion.

.. “Setad built its empire on the systematic seizure of thousands of properties belonging to ordinary Iranians

.. the Islamic Revolutionary Guards Corps, estimated to controlanother 15 percent of the Iranian economy.

.. But it also means that the kleptotheocracy is uniquely vulnerable to charges of hypocrisy.

.. All Islamist movements take the concept of justice (as opposed to freedom) as their organizing political concept, and all of them ignore it at their peril.

.. Ken Weinstein of the Hudson Institute has argued that the U.S. government “should release details on the billions in stolen assets” held by the I.R.G.C. and the supreme leader. That — and making sure ordinary Iranians learn about them, one scandalous disclosure at a time — is the right idea.

.. put Setad, along with its scores of front companies and subsidiaries, under U.S. sanctions for corruption. The Obama administration did such a thing in 2013, only to reverse course as part of the nuclear deal.

Tillerson’s fall could turn State into a hawk’s nest

The centerboard of this administration’s foreign policy team will remain Defense Secretary Jim Mattis, still steady in balancing competing views. But there will be a lot more sail aloft, adding speed and also danger. The changes will likely be seen as a signal of greater U.S. willingness to use force, which will increase anxieties at home and abroad about possible conflict with North Korea and Iran.

.. Mike Pompeo, the feisty and politically ambitious CIA director who is likely headed to State, is the un-Tillerson. He’s flamboyant where Tillerson is guarded, sharp and sometimes snarky where Tillerson is reticent. He’s a far better communicator than Tillerson, and he’ll probably do better conveying to Congress, the public and U.S. allies his version of diplomacy than does Tillerson, whose dislike for his job is palpable.
 
.. The atmospherics will be a more activist, hawkish, extroverted U.S. foreign policy. Pompeo is good at the things Tillerson isn’t.

.. Mattis and Tillerson have been joined at the hip on most policy issues, especially North Korea. They presented a formidable united front in the Situation Room; the power axis may now shift a bit, because of the chemistry between Trump and Pompeo.

.. Pompeo has been aggressively developing covert options for North Korea, but he probably agrees with Tillerson that there is no “silver bullet” for solving this problem.

.. Tillerson’s plan to convene in Canada a meeting of the “sending states,” the 15 U.S. allies that sent troops to fight North Korea in 1950 under a U.N. Security Council resolution. Mattis was the first to endorse this idea publicly, and he still backs it strongly.

.. The wild card in the new team is Sen. Tom Cotton (R-Ark.), reputed to be the president’s choice to replace Pompeo as CIA director. Cotton has played an outsize policy role in recent months, especially in shaping Iran strategy. He cultivates the image of a hard man, lanky, laconic and Arkansas-tough. Like Pompeo, he combines book smarts with a high tolerance for risk. Pyongyang and Tehran should be worried. This team has not been selected to manage compromise.

.. U.S. allies will probably be worried, too. Tillerson was liked and trusted by key allies and seen as a check on Trump’s impulsiveness.

.. Most successful CIA directors quickly learn how much they don’t know; humility is part of the job description, along with boldness.

.. In the early months of the Trump administration, the Mattis-Tillerson alliance led many analysts to say that the “adults” were in charge of foreign policy, and that their influence checked the tweet-happy president. Trump hated that formulation. Now he’ll have a new team, one that is tuned more closely to his pitch.