Using Donald Trump’s Tough Talk to Create Real Jobs

Mr. Trump in his presidential campaign said we needed at least $500 billion in new infrastructure investment. America’s civil engineers would like seven times that.

.. Attaching “buy American” preferences on material would greatly help the economy and would spare us national embarrassments, like the use of Chinese steel on the recently rebuilt San Franciso-Oakland Bay Bridge.

Ringside With Steve Bannon at Trump Tower as the President-Elect’s Strategist Plots “An Entirely New Political Movement” (Exclusive)

“Darkness is good,” says Bannon, who amid the suits surrounding him at Trump Tower, looks like a graduate student in his T-shirt, open button-down and tatty blue blazer — albeit a 62-year-old graduate student. “Dick Cheney. Darth Vader. Satan. That’s power. It only helps us when they” — I believe by “they” he means liberals and the media, already promoting calls for his ouster — “get it wrong. When they’re blind to who we are and what we’re doing.”

.. The focus on Bannon, if not necessarily the description, is right. He’s the man with the idea. If Trumpism is to represent something intellectually and historically coherent, it’s Bannon’s job to make it so.

.. What he seems to have carried from a boyhood in a blue-collar, union and Democratic family in Norfolk, Va., and through his tour of the American establishment, is an unreconstructed sense of class awareness, or bitterness — or betrayal. The Democratic Party betrayed its workingman roots, just as Hillary Clinton betrayed the longtime Clinton connection — Bill Clinton’s connection — to the workingman. “The Clinton strength,” he says, “was to play to people without a college education. High school people. That’s how you win elections.” And, likewise, the Republican party would come to betray its workingman constituency forged under Reagan. In sum, the workingman was betrayed by the establishment, or what he dismisses as the “donor class.”

.. They — liberals and media — don’t understand what he is saying, or why, or to whom. Breitbart, with its casual provocations — lists of its varied incitements (among them: the conservative writer David Horowitz referred to conservative pundit Brill Kristol as a “renegade Jew,” and the site delighting in headlines

.. He absolutely — mockingly — rejects the idea that this is a racial line. “I’m not a white nationalist, I’m a nationalist. I’m an economic nationalist,” he tells me. “The globalists gutted the American working class and created a middle class in Asia. The issue now is about Americans looking to not get f—ed over. If we deliver” — by “we” he means the Trump White House — “we’ll get 60 percent of the white vote, and 40 percent of the black and Hispanic vote and we’ll govern for 50 years. That’s what the Democrats missed. They were talking to these people with companies with a $9 billion market cap employing nine people. It’s not reality. They lost sight of what the world is about.”

.. Bannon can seem to be not just a focused voice, but almost a messianic one:

“Like [Andrew] Jackson’s populism, we’re going to build an entirely new political movement,” he says. “It’s everything related to jobs. The conservatives are going to go crazy. I’m the guy pushing a trillion-dollar infrastructure plan. With negative interest rates throughout the world, it’s the greatest opportunity to rebuild everything. Shipyards, ironworks, get them all jacked up. We’re just going to throw it up against the wall and see if it sticks. It will be as exciting as the 1930s, greater than the Reagan revolution — conservatives, plus populists, in an economic nationalist movement.”

.. “The media bubble is the ultimate symbol of what’s wrong with this country,” he continues. “It’s just a circle of people talking to themselves who have no f—ing idea what’s going on. If The New York Times didn’t exist, CNN and MSNBC would be a test pattern. The Huffington Post and everything else is predicated on The New York Times. It’s a closed circle of information from which Hillary Clinton got all her information — and her confidence. That was our opening.”

.. it is not just the liberal establishment that Bannon feels he has triumphed over, but the conservative one too — not least of all Fox News and its owners, the Murdochs. “They got it more wrong than anybody,” he says. “Rupert is a globalist and never understood Trump. To him, Trump is a radical. Now they’ll go centrist and build the network around Megyn Kelly.”

.. a Bannon insight: When the campaign seemed most in free fall or disarray, it was perhaps most on target. While Clinton was largely absent from the campaign trail and concentrating on courting her donors

.. He shows up 3.5 hours late in Michigan at 1 in the morning and has 35,000 people waiting in the cold. When they got [Clinton] off the donor circuit she went to Temple University and they drew 300 or 400 kids.”

.. “I am,” he says, with relish, “Thomas Cromwell in the court of the Tudors.” 

Will Political Reality Derail Markets’ Bet on Donald Trump?

The Committee for a Responsible Federal Budget estimates that Trump’s plans would add $5.3 trillion to the federal debt over the next decade.

House Republicans, in particular, don’t like that kind of number, and that has the potential to mess with both tax-cut and infrastructure plans. Look for a moment of truth in mid-2017, when a Republican president and a Republican Congress have to agree on a plan to raise the federal debt ceiling or face a market-rattling default on American debt.

Donald Trump’s Spending Push Rankles Fiscal Conservatives

Republicans hope to avert ballooning deficits that may result from president-elect’s low-tax, big-ticket agenda

This suggests the GOP will be willing to tolerate higher deficits in the short-run under Mr. Trump because the party is largely united on overhauling corporate and individual income taxes.

.. And reduced revenues, they worry, could be used to justify big cuts to safety-net programs like food stamps and Medicaid.

.. Under current policy, the Congressional Budget Office sees the budget deficit of 3.2% of gross domestic product holding around those levels for the next four years. By the end of Mr. Trump’s first term, deficits would rise to 5.3% of GDP under the House Republicans’ tax plan, and to 6.8% under Mr. Trump’s proposal, according to an analysis by Cornerstone Macro, a research firm.

.. The last two times Republicans reclaimed the White House from Democrats—in 1981 and 2001—they also successfully pushed for large tax cuts. Deficits nonetheless rose during their administrations.

.. Deficits have also fallen below projections in recent years due to a surprising decline in the growth rate of health care spending and because interest rates have been lower than projected.

.. Already, Mr. Trump has forsworn any changes to the largest future drivers of spending, Social Security and Medicare.

.. Other advisers say they are open to recycling a proposal made by President Barack Obama and Democratic nominee Hillary Clinton to pay for infrastructure with one-time revenues from taxing multinationals’ profits stashed abroad.

.. Mr. Trump’s chief strategist, Stephen Bannon, has echoed arguments made in recent years by left-leaning economists who supported more spending to boost growth.

“With negative interest rates throughout the world, it’s the greatest opportunity to rebuild everything,” Mr. Bannon said