The documentary series “The Reagans” shows that President Ronald Reagan’s roots are corruption, racism, and corporatism. Trumpism is not an anomaly but walks in the footsteps of a right-wing construct to achieve tax cuts for the rich and undoing the New Deal. Director Matt Tynrauer joins theAnalysis.news with Paul Jay.
Understand that, and you’ll understand what he’s doing in the White House.
On Sept. 1, with a Category 5 hurricane off the Atlantic coast, an angry wind was issuing from the direction of President Trump’s Twitter account. The apparent emergency: Debra Messing, the co-star of “Will & Grace,” had tweeted that “the public has a right to know” who is attending a Beverly Hills fund-raiser for Mr. Trump’s re-election.
“I have not forgotten that when it was announced that I was going to do The Apprentice, and when it then became a big hit, Helping NBC’s failed lineup greatly, @DebraMessing came up to me at an Upfront & profusely thanked me, even calling me ‘Sir,’ ” wrote the 45th president of the United States.
It was a classic Trumpian ragetweet: aggrieved over a minor slight, possibly prompted by a Fox News segment, unverifiable — he has a long history of questionable tales involving someone calling him “Sir” — and nostalgic for his primetime-TV heyday. (By Thursday he was lashing Ms. Messing again, as Hurricane Dorian was lashing the Carolinas.)
This is a futile effort. Try to understand Donald Trump as a person with psychology and strategy and motivation, and you will inevitably spiral into confusion and covfefe. The key is to remember that Donald Trump is not a person. He’s a TV character.
I mean, O.K., there is an actual person named Donald John Trump, with a human body and a childhood and formative experiences that theoretically a biographer or therapist might usefully delve into someday. (We can only speculate about the latter; Mr. Trump has boasted on Twitter of never having seen a psychiatrist, preferring the therapeutic effects of “hit[ting] ‘sleazebags’ back.”)
But that Donald Trump is of limited significance to America and the world. The “Donald Trump” who got elected president, who has strutted and fretted across the small screen since the 1980s, is a decades-long media performance. To understand him, you need to approach him less like a psychologist and more like a TV critic.
He was born in 1946, at the same time that American broadcast TV was being born. He grew up with it. His father, Fred, had one of the first color TV sets in Jamaica Estates. In “The Art of the Deal” Donald Trump recalls his mother, Mary Anne, spending a day in front of the tube, enraptured by the coronation of Queen Elizabeth in 1953. (“For Christ’s sake, Mary,” he remembers his father saying, “Enough is enough, turn it off. They’re all a bunch of con artists.”)TV was his soul mate. It was like him. It was packed with the razzle-dazzle and action and violence that captivated him. He dreamed of going to Hollywood, then he shelved those dreams in favor of his father’s business and vowed, according to the book “TrumpNation” by Timothy O’Brien, to “put show business into real estate.”
As TV evolved from the homogeneous three-network mass medium of the mid-20th century to the polarized zillion-channel era of cable-news fisticuffs and reality shocker-tainment, he evolved with it. In the 1980s, he built a media profile as an insouciant, high-living apex predator. In 1990, he described his yacht and gilded buildings to Playboy as “Props for the show … The show is ‘Trump’ and it is sold-out performances everywhere.”
He syndicated that show to Oprah, Letterman, NBC, WrestleMania and Fox News. Everything he achieved, he achieved by using TV as a magnifying glass, to make himself appear bigger than he was.
He was able to do this because he thought like a TV camera. He knew what TV wanted, what stimulated its nerve endings. In his campaign rallies, he would tell The Washington Post, he knew just what to say “to keep the red light on”: that is, the light on a TV camera that showed that it was running, that you mattered. Bomb the [redacted] out of them! I’d like to punch him in the face! The red light radiated its approval. Cable news aired the rallies start to finish. For all practical purposes, he and the camera shared the same brain.
Even when he adopted social media, he used it like TV. First, he used it like a celebrity, to broadcast himself, his first tweet in 2009 promoting a “Late Show With David Letterman” appearance. Then he used it like an instigator, tweeting his birther conspiracies before he would talk about them on Fox News, road-testing his call for a border wall during the cable-news fueled Ebola and border panics of the 2014 midterms.
When he was a candidate, and especially when he was president, his tweets programmed TV and were amplified by it. On CNBC, a “BREAKING NEWS: TRUMP TWEET” graphic would spin out onscreen as soon as the words left his thumbs. He would watch Fox News, or Lou Dobbs, or CNN or “Morning Joe” or “Saturday Night Live” (“I don’t watch”), and get mad, and tweet. Then the tweets would become TV, and he would watch it, and tweet again.
If you want to understand what President Trump will do in any situation, then, it’s more helpful to ask: What would TV do? What does TV want?It wants conflict. It wants excitement. If there is something that can blow up, it should blow up. It wants a fight. It wants more. It is always eating and never full.
Some presidential figure-outers, trying to understand the celebrity president through a template that they were already familiar with, have compared him with Ronald Reagan: a “master showman” cannily playing a “role.”
The comparison is understandable, but it’s wrong. Presidents Reagan and Trump were both entertainers who applied their acts to politics. But there’s a crucial difference between what “playing a character” means in the movies and what it means on reality TV.
Ronald Reagan was an actor. Actors need to believe deeply in the authenticity and interiority of people besides themselves — so deeply that they can subordinate their personalities to “people” who are merely lines on a script. Acting, Reagan told his biographer Lou Cannon, had taught him “to understand the feelings and motivations of others.”
Being a reality star, on the other hand, as Donald Trump was on “The Apprentice,” is also a kind of performance, but one that’s antithetical to movie acting. Playing a character on reality TV means being yourself, but bigger and louder.
Reality TV, writ broadly, goes back to Allen Funt’s “Candid Camera,” the PBS documentary “An American Family,” and MTV’s “The Real World.” But the first mass-market reality TV star was Richard Hatch, the winner of the first season of “Survivor” — produced by Mark Burnett, the eventual impresario of “The Apprentice”— in the summer of 2000.
Mr. Hatch won that first season in much the way that Mr. Trump would run his 2016 campaign. He realized that the only rules were that there were no rules. He lied and backstabbed and took advantage of loopholes, and he argued — with a telegenic brashness — that this made him smart. This was a crooked game in a crooked world, he argued to a final jury of players he’d betrayed and deceived. But, hey: At least he was open about it!
While shooting that first season, the show’s crew was rooting for Rudy Boesch, a 72-year-old former Navy SEAL and model of hard work and fair play. “The only outcome nobody wanted was Richard Hatch winning,” the host, Jeff Probst, would say later. It “would be a disaster.” After all, decades of TV cop shows had taught executives the iron rule that the viewers needed the good guy to win.
But they didn’t. “Survivor” was addictively entertaining, and audiences loved-to-hate the wryly devious Richard the way they did Tony Soprano and, before him, J.R. Ewing. More than 50 million people watched the first-season finale, and “Survivor” has been on the air nearly two decades.
From Richard Hatch, we got a steady stream of Real Housewives, Kardashians, nasty judges, dating-show contestants who “didn’t come here to make friends” and, of course, Donald Trump.
Reality TV has often gotten a raw deal from critics. (Full disclosure: I still watch “Survivor.”) Its audiences, often dismissed as dupes, are just as capable of watching with a critical eye as the fans of prestige cable dramas. But when you apply its mind-set — the law of the TV jungle — to public life, things get ugly.
In reality TV — at least competition reality shows like “The Apprentice” — you do not attempt to understand other people, except as obstacles or objects. To try to imagine what it is like to be a person other than yourself (what, in ordinary, off-camera life, we call “empathy”) is a liability. It’s a distraction that you have to tune out in order to project your fullest you.
Reality TV instead encourages “getting real.” On MTV’s progressive, diverse “Real World,” the phrase implied that people in the show were more authentic than characters on scripted TV — or even than real people in your own life, who were socially conditioned to “be polite.” But “getting real” would also resonate with a rising conservative notion: that political correctness kept people from saying what was really on their minds.
Being real is not the same thing as being honest. To be real is to be the most entertaining, provocative form of yourself. It is to say what you want, without caring whether your words are kind or responsible — or true — but only whether you want to say them. It is to foreground the parts of your personality (aggression, cockiness, prejudice) that will focus the red light on you, and unleash them like weapons.
Maybe the best definition of being real came from the former “Apprentice” contestant and White House aide Omarosa Manigault Newman in her memoir, “Unhinged.” Mr. Trump, she said, encouraged people in his entourage to “exaggerate the unique part of themselves.” When you’re being real, there is no difference between impulse and strategy, because the “strategy” is to do what feels good.
This is why it misses a key point to ask, as Vanity Fair recently did after Mr. Trump’s assault on Representative Elijah E. Cummings and the city of Baltimore in July, “Is the president a racist, or does he just play one on TV?” In reality TV, if you are a racist — and reality TV has had many racists, like Katie Hopkins, the far-right British “Apprentice” star the president frequently retweets — then you are a racist and you play one on TV.
So if you actually want a glimpse into the mind of Donald J. Trump, don’t look for a White House tell-all or some secret childhood heartbreak. Go to the streaming service Tubi, where his 14 seasonsof “The Apprentice” recently became accessible to the public.
You can fast-forward past the team challenges and the stagey visits to Trump-branded properties. They’re useful in their own way, as a picture of how Mr. Burnett buttressed the future president’s Potemkin-zillionaire image. But the unadulterated, 200-proof Donald Trump is found in the boardroom segments, at the end of each episode, in which he “fires” one contestant.
In theory, the boardroom is where the best performers in the week’s challenges are rewarded and the screw-ups punished. In reality, the boardroom is a new game, the real game, a free-for-all in which contestants compete to throw one another under the bus and beg Mr. Trump for mercy.
There is no morality in the boardroom. There is no fair and unfair in the boardroom. There is only the individual, trying to impress Mr. Trump, to flatter Mr. Trump, to commune with his mind and anticipate his whims and fits of pique. Candidates are fired for
- being too nice to their adversaries (weak), for
- giving credit to their teammates, for
- interrupting him.
The host’s decisions were often so mercurial, producers have said, that they would have to go back and edit the episodes to impose some appearance of logic on them.
What saves you in the boardroom? Fighting. Boardroom Trump loves to see people fight each other. He perks up at it like a cat hearing a can opener. He loves to watch people scrap for his favor (as they eventually would in his White House). He loves asking contestants to rat out their teammates and watching them squirm with conflict. The unity of the team gives way to disunity, which in the Trumpian worldview is the most productive state of being.
And America loved boardroom Trump — for a while. He delivered his catchphrase in TV cameos and slapped it on a reissue of his 1980s Monopoly knockoff Trump: The Game. (“I’m back and you’re fired!”) But after the first season, the ratings dropped; by season four they were nearly half what they were in season one.
He reacted to his declining numbers by ratcheting up what worked before: becoming a louder, more extreme, more abrasive version of himself. He gets more insulting in the boardroom — “You hang out with losers and you become a loser”— and executes double and quadruple firings.
It’s a pattern that we see as he advances toward his re-election campaign, with an eye not on the Nielsen ratings but on the polls: The only solution for any given problem was a Trumpier Trump.
Did it work for “The Apprentice”? Yes and no. His show hung on to a loyal base through 14 seasons, including the increasingly farcical celebrity version. But it never dominated its competition again, losing out, despite his denials, to the likes of the sitcom “Mike & Molly.”
Donald Trump’s “Apprentice” boardroom closed for business on Feb. 16, 2015, precisely four months before he announced his successful campaign for president. And also, it never closed. It expanded. It broke the fourth wall. We live inside it now.
Now, Mr. Trump re-creates the boardroom’s helter-skelter atmosphere every time he opens his mouth or his Twitter app. In place of the essentially dead White House press briefing, he walks out to the lawn in the morning and reporters gaggle around him like “Apprentice” contestants awaiting the day’s task. He rails and complains and establishes the plot points for that day’s episode:
- “I am the chosen one!”
Then cable news spends morning to midnight happily masticating the fresh batch of outrages before memory-wiping itself to prepare for tomorrow’s episode. Maybe this sounds like a TV critic’s overextended metaphor, but it’s also the president’s: As The Times has reported, before taking office, he told aides to think of every day as “an episode in a television show in which he vanquishes rivals.”
Mr. Trump has been playing himself instinctually as a character since the 1980s; it’s allowed him to maintain a profile even through bankruptcies and humiliations. But it’s also why, on the rare occasions he’s had to publicly attempt a role contrary to his nature — calling for healing from a script after a mass shooting, for instance — he sounds as stagey and inauthentic as an unrehearsed amateur doing a sitcom cameo.
His character shorthand is “Donald Trump, Fighter Guy Who Wins.” Plop him in front of a camera with an infant orphaned in a mass murder, and he does not have it in his performer’s tool kit to do anything other than smile unnervingly and give a fat thumbs-up.
This is what was lost on commentators who kept hoping wanly that this State of the Union or that tragedy would be the moment he finally became “presidential.” It was lost on journalists who felt obligated to act as though every modulated speech from a teleprompter might, this time, be sincere.
The institution of the office is not changing Donald Trump, because he is already in the sway of another institution. He is governed not by the truisms of past politics but by the imperative of reality TV: never de-escalate and never turn the volume down.
This conveniently echoes the mantra he learned from his early mentor, Roy Cohn: Always attack and never apologize. He serves up one “most shocking episode ever” after another, mining uglier pieces of his core each time: progressing from profanity about Haiti and Africa in private to publicly telling four minority American congresswomen, only one of whom was born outside the United States, to “go back” to the countries they came from.
- The taunting.
- The insults.
- The dog whistles.
- The dog bullhorns.
- The “Lock her up” and “Send her back.”
All of it follows reality-TV rules. Every season has to top the last. Every fight is necessary, be it against Ilhan Omar or Debra Messing. Every twist must be more shocking, every conflict more vicious, lest the red light grow bored and wink off. The only difference: Now there’s no Mark Burnett to impose retroactive logic on the chaos, only press secretaries, pundits and Mike Pence.
To ask whether any of this is “instinct” or “strategy” is a parlor game. If you think like a TV camera — if thinking in those reflexive microbursts of adrenaline and testosterone has served you your whole life — then the instinct is the strategy.
And to ask who the “real” Donald Trump is, is to ignore the obvious. You already know who Donald Trump is. All the evidence you need is right there on your screen. He’s half-man, half-TV, with a camera for an eye that is constantly focused on itself. The red light is pulsing, 24/7, and it does not appear to have an off switch.
BERLIN—To win voters lost to an anti-globalization backlash, Europe’s mainstream parties are going back to the 1970s.
In Germany, the U.K, Denmark, France and Spain, these parties are aiming to reverse decades of pro-market policy and promising greater state control of business and the economy, more welfare benefits, bigger pensions and higher taxes for corporations and the wealthy. Some have discussed nationalizations and expropriations.
It could add up to the biggest shift in economic policy on the continent in decades.
In Germany, Europe’s biggest economy, the government has increased social spending in a bid to stop the exodus of voters to antiestablishment, populist and special-interest parties. Reacting to pressure on both ends of the political spectrum, it passed the largest-ever budget last year.
“The zeitgeist of globalization and liberalization is over,” said Ralf Stegner, vice chairman of the 130-year-old Social Democratic Party, the junior partner in Chancellor Angela Merkel’s government coalition. “The state needs to become much more involved in key areas such as work, pensions and health care.”
The policies mark the end of an era in Europe that started four decades ago, with the ascent of former British Prime Minister Margaret Thatcher and her U.S. ally, President Ronald Reagan.
After Thatcher abolished capital controls in 1979 and began selling off state companies in the 1980s, other European governments followed suit, embracing supply-side policies, deregulation, market liberalization and tax cuts. Revenues from privatization among European Union member states rose from $13 billion in 1990 to $87 billion in 2005, according to Privatization Barometer, a database run by consultancy KPMG Advisory S.p.A.
Today, concerns about growing inequality, stagnating wages, immigration, the debt crisis and China’s rising power have fueled the recent political shift. European businesses and governments also worry about potential changes in U.S. policy, amid looming threats of trade sanctions.Smaller State Governments across Europe retreated from many economic sectors and sold state companies starting inthe 1980s.Privatization proceeds in EU countriesSource: Privatization Barometer reports00.billion1980’85’90’952000’05’10’150102030405060708090$100
This erosion of the old technocratic consensus about how to run an economy, even in countries where populists aren’t getting any closer to power, could be one the most lasting consequences of the recent antiestablishment surge.
Even in countries where populist parties are already in government, such as Poland, those parties have shifted their focus from nationalist and anti-immigration rhetoric to championing generous welfare policies and state aid.Bigger BenefitsGermany’s government has increased socialspending in a bid to win over voters. Germany’s government spendingSource: Germany’s Federal Ministry of FinanceNotes: Data through 2017 are actual; 2018 and 2019are targets. €1=$1.14.billionSocial and welfare benefitsOther spending2012’13’14’15’16’17’18’19050100150200250300350€400
Germany’s SPD has embraced additional welfare spending, paid for by tax revenues, to combat a retreat of voters so rapid it threatens to turn the once-dominant force in German politics into a niche player. The party is now pushing for policies such as unconditional pension for people who have worked for a certain period but didn’t make sufficient contributions into the pension pot.
In the U.K., Jeremy Corbyn, leader of the opposition Labor Party, has proposed renationalizing railways, public utilities, the postal service and the Royal Bank of Scotland ,the country’s second-biggest lender. It’s effectively a reversal of the privatization spree initiated by Ms. Thatcher. The party is also toying with policies such as universal basic income for all and a four-day working week for public-sector employees.
Labor has been polling ahead of the ruling Conservatives in opinion surveys for most of the past two years.
The re-nationalization plan would cost around $210 billion, according to an estimate by New York-based consulting firm S&P Global. Labor has said it would issue treasury bonds to finance nationalizations. Thames Water, the U.K.’s largest water company, added a clause to its bond to make sure holders are repaid immediately should it be nationalized.
In France, President Emmanuel Macron reacted to weeks of violent street protests by abolishing plans to increase fuel prices and announcing measures to boost the incomes of low earners. The estimated cost of the spending is more than €10 billion ($11 billion). In a symbolic concession to the antiestablishment yellow-vest movement, Mr. Macron declared he would shut down the university École Nationale d’Administration, his own alma mater, because it instigated elitism.
Mr. Macron reversed a decision to eliminate 200,000 civil-service jobs and announced a tax increase for companies that overly rely on short-term contracts, which his government blames for creating an underclass of workers. In addition, monthly pensions of less than €2,000 have been pegged to the rate of inflation.
He also embraced the idea of holding referendums on certain policy issues, a key demand of populist leaders. The first major referendum will decide whether the sale of the state’s majority stake in the company that runs Paris’s airports should go ahead as planned.
Denmark’s Social Democrats, who had been out of government since 2015, won a general election on June 5 following a policy makeover that included going further left on economic policy, while sharply turning right on immigration. They pledged to increase public spending and taxes for companies and the wealthy, and to enable early retirement by rolling back some recent pension changes. Their far-right rivals the People’s Party suffered a major loss in the election.
The reaction from European economists is decidedly mixed.
Some have greeted the shift as a welcome correction to years of pro-business and free-trade policies they think have dug deep rifts in Western societies.
“The lesson from Germany is: Strong growth and a generous social welfare system alone are insufficient to satisfy voters. Globalization and technological change are putting pressure on many people,” said Marcel Fratzscher, head of the German Institute for Economic Research, a Berlin-based think tank. “Europe’s social welfare state needs a fundamental overhaul as it has to focus on empowering people and on stopping the market abuse of firms and lobby groups.”
Others are concerned Europe is deviating from proven economic recipes just as growth is wobbling, or that the policies are outdated.
“We are indeed seeing a kind of return to the pre-Thatcherite approach, but it is doubtful that policies from the era of closed markets and capital controls could work in a globalized world. A vision of the past can’t be implemented in the present,” said Branko Milanovic, a New York-based Serbian-American economist who studies income distribution and inequality.
In Germany, despite a decade of robust economic growth and near full employment, almost four million working people receive welfare benefits to supplement their income. Around one-quarter of all employees work in the low-wage sector, according to government statistics and research by Mr. Fratzscher’s group.Low Wages Increased competition put downward pressure on wages, while shrinking unemployment benefits increased incentives for Germans to take lower paying jobs. Share of German workers who are low paid*Source: German Institute for Economic Research*Those who make less than two-thirds of the country’s median earnings%1996’982000’02’04’06’08’10’12’14’1614161820222426
Subsidies to Germany’s mandatory pay-as-you-go pension scheme almost reached the €100 billion mark for the first time in 2018. Earlier this year, Ms. Merkel’s government adopted a new industrial strategy that centers on protecting German companies from foreign competition, including by enabling the government to buy stakes in businesses to shield them from foreign acquisition.
Peter Altmaier, economics minister and author of the industry strategy, said it was designed in part to address the anxieties of Germans who have been drawn to far-left and far-right parties in recent years.
Germany’s SPD, the junior partner in Germany’s government coalition, is now debating whether large real-estate investors should be expropriated as a way to stabilize rents. In Berlin, where they preside over the local government, the SPD announced a freeze on rent prices. The head of its youth wing recently called for car maker BMW to be nationalized, earning grass-roots plaudits and some support from SPD ministers and mayors.
The SPD scored its worst result ever at last month’s European Union election. Polling around 12% to 14%, it is a shadow of its 1998 self, when it gathered 41% of the vote.
The environment-focused, center-left Greens more than doubled their votes between the country’s last general election in September 2017 and the EU election. It is now polling at around 26%. At least two polls since early June showed the Greens had become Germany’s most popular party for the first time since its creation in the 1980s—ahead of Ms. Merkel’s Christian Democratic Union.
Twenty years ago, the German Greens co-wrote with the SPD the country’s last big tax cuts and a deeply unpopular overhaul of labor-market legislation. Today, the party is toying with an unconditional universal income and seizing real estate from commercial landlords as a way to stop rent increases.
The far-right Alternative for Germany, known as AfD, lost ground in last month’s EU election, and is now polling around 13%.
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The AfD has campaigned on immigration in recent elections. Party leaders recently consulted with Steven K. Bannon, President Trump’s former chief strategist and now an adviser to nationalist and populist parties in Europe. In a meeting in Berlin on May 13, he advised the leaders to tone down their anti-Islam fervor, purge radical members, and refocus their message from identity politics to economics.
“The real message is the economy,” Mr. Bannon said in an interview. “Populists need to talk to the workers.”
Jörg Meuthen, the AfD co-chair who met Mr. Bannon, said he agreed, but questioned the timing of the message. He said Germany’s economy—with record low unemployment and slowing but still positive growth—remained too healthy for an immediate policy shift.
“When the recession kicks in and people start worrying about their jobs, then we can roll out economic campaigns and show our competence. Populists must look at what is affecting people emotionally, and at the moment that is migration and the climate,” Mr. Meuthen said.Globalization BacklashProtest parties focused on denouncing the economic, cultural and security impact of globalization have drawn more attention across Europe.Populist party poll performance in selected countries Source: NomuraNote: Weighted averages of national polls.%GermanyFranceSpainU.K.2015’16’17’18’19051015202530
In Spain, Pedro Sanchez, acting premier and leader of the Socialist Party, won the national and the EU elections this year after sharply raising the minimum wage and announcing a boost in social benefits and corporate taxes.
Mr. Sanchez’s bet on wooing working-class voters lost to protest parties paid off, said Daniel Diaz Fuentes, professor of economics at the Spanish university of Cantabria. Mr. Fuentes said that the rise of populism could trigger a re-nationalization wave.
“I think that the state will become a much more active entrepreneurial actor via venture capital and involvement in investment via the banking system,” Mr. Fuentes said.Two TrajectoriesThe income of low earners has decreased since 1980, while that of top earners has grown.Income shares of the top 10% in European regions*%NorthernWesternSouthernEastern1980’902000’102022242628303234Income shares of the bottom 50% in European regions*Source: Thomas Blanchet, Lucas Chancel and Amory Gethin, World Inequality Database*Population-weighted country averages%NorthernWesternSouthernEastern1980’902000’102022242628303234
Wolfgang Schmidt, deputy German finance minister and one of the strategists behind the SPD’s new approach, said the success of socialists in Spain, Britain and Denmark, in elections and opinion polls, shows that voters have turned against economic orthodoxy.
“As a society, we need to stop looking down on people. Anxiety about the future of work is driving voters to populists. People read about automation and self-driving cars and they ask themselves what will happen to their jobs in the near future,” he said.
Many European politicians and economists say the swing away from markets and back to the state misses the point of many voters’ anxiety, which is rooted in politics or culture. An annual poll about the fears of Germans conducted by the R+V Versicherung AG insurance group found that nine of respondents’ top 10 fears focused on politics, security and health. Economic concerns dominated between 2004 and 2015.
Paul Ziemiak, the second most senior official in Ms. Merkel’s conservative party, opposes what he says is an SPD-driven spending spree. “These policies have never made any country successful. Countries that have [tried them] have ultimately failed—politically, but also economically,” he said.
Protectionism would destroy a German economy built on exports and cross-border supply chains, said Clemens Fuest, an economist and adviser to the German government. Ambitious redistribution programs such as pension increases, early retirement or a universal income would collapse as soon as tax revenues fall in the slowdown. Companies were privatized 30 years ago because the state is generally bad at managing businesses, he said.
“Established parties are taking over the populists’ agenda to show voters that they have heard their message,” Mr. Fuest said. “But they are making big promises that cannot be kept.”
Keeping track of the Jacksonians, Reformicons, Paleos, and Post-liberals.
I like to start my classes on conservative intellectual history by distinguishing between three groups. There is the Republican party, with its millions of adherents and spectrum of opinion from very conservative, somewhat conservative, moderate, and yes, liberal. There is the conservative movement, the constellation of single-issue nonprofits that sprung up in the 1970s —
- gun rights,
- right to work
— and continue to influence elected officials. Finally, there is the conservative intellectual movement: writers, scholars, and wonks whose journalistic and political work deals mainly with ideas and, if we’re lucky, their translation into public policy.
Those decades of free-market machinations are now paying off, as a quintet of Ronald Reagan administration alumni — Kudlow, Laffer, Forbes, Moore and David Malpass—united by undying affection for each other and for laissez-faire economics, have the run of Washington once more. Members of the tight-knit group have shaped Trump’s signature tax cut, helped install each other in posts with vast influence over the global economy, and are working to channel Trump’s mercantilist instincts into pro-trade policies. Blasted by their critics as charlatans and lauded by their acolytes as tireless champions of prosperity, there’s no denying that the quintet has had an enduring impact on decades of economic policy.
Most recently, in late March, and partly at Kudlow’s urging, Trump announced his intention to nominate Moore to one of two open seats on the Federal Reserve Board of Governors, the body that sets the tempo of the global financial system.
The announcement prompted protests from economists across the ideological spectrum—George W. Bush’s top economist, Harvard’s Gregory Mankiw, said Moore lacked the “intellectual gravitas” for the job—who warned that appointing Moore, a think-tanker with no Ph.D., would politicize the Fed. Soon, it emerged that Moore had made a mistake on a 2014 tax return that led the IRS to place a disputed $75,000 lien against him, and CNN dug up scathing comments Moore had made about Trump during the presidential primary.
Whether Moore can survive the scrutiny and pass muster with the Senate will be a test of the supply-siders’ renewed cachet. They believe they can pull it off.
“I understand there are imperfections,” Kudlow told POLITICO. “I think it can be worked out.”
Moore described some of his recent conversations with Trump, which often turn to Fed Chairman Jerome Powell.
“I think his criticism of Powell is excessive and could be counterproductive,” Moore said, because it could actually provoke Powell to prove his independence by defying Trump’s wishes. Generally speaking, Trump wants Powell to keep interest rates low to decrease the chances of any economic slump before the president faces voters again next November.
Moore also recounted how he and Laffer, who began advising Trump in 2016, helped place Kudlow in his current posting.
Roughly a year into Trump’s term, as Trump’s first NEC director, Gary Cohn, prepared to depart the post, the duo sprang into action. Moore said that during this period, whenever he and Laffer engaged in their semiregular consultations with Trump, they would have some version of the following exchange:
“You know, Mr. President, you’re missing one thing,” Laffer or Moore would say.
“What is that?” Trump would ask.
“Larry Kudlow,” Laffer or Moore would tell him.
“We just drilled the message over and over,” Moore recalled. “‘Larry, Larry, Larry, Larry.’”
During that same period, following the 1974 midterms, Laffer first drewhis famous Laffer Curve — a representation of the idea that at a certain level of taxation, lowering taxes would theoretically spur enough growth that government revenue would actually rise—at a meeting near the White House with Wanniski, Dick Cheney, then an aide to President Gerald Ford, and Grace-Marie Arnett, another free marketeer active in Republican politics.
Reagan would go on to fully embrace supply-side theory, a shift from the party’s traditional emphasis on fiscal discipline, appointing Laffer to his Economic Policy Advisory Board.
Then as now, supply-side economics was criticized for favoring the rich and derided by critics as unrealistic “Voodoo Economics.” The critics got an early boost from a 1981 Atlantic cover story in which Reagan’s budget director, David Stockman, aired his doubts that this novel theory was working in practice.
The piece ruined Stockman’s standing with Reagan—Laffer calls him “the traitor of all traitors”—but Stockman’s young aide, Kudlow, now 71, remained a loyal supply-sider and struck up a relationship with Laffer.
Reagan would go on to appoint Forbes as the head of the Board of International Broadcasting, which oversaw Radio Liberty and Radio Free Europe, and Moore worked as the research director for Reagan’s privatization commission. Malpass, meanwhile, worked in Reagan’s Treasury department. Representatives for Forbes and Malpass said they were not available for interviews.
In the 1988 presidential primary, another supply-sider, the late New York congressman Jack Kemp, lost out to George H.W. Bush, curtailing the crew’s influence within the party.
But they stuck together. Moore, now 59, first became close with Laffer and Kudlow in 1991, after he recruited them to participate in an event celebrating the 10-year anniversary of Reagan’s first tax cuts for the libertarian Cato Institute.
In 1993, Kudlow and Forbes teamed up to craft a tax cut plan for New Jersey gubernatorial candidate Christine Todd Whitman, who went on to unseat incumbent Democrat James Florio.
Meanwhile, Kudlow hired Malpass to work for him at Bear Stearns, where he had been flying high as the investment bank’s chief economist.
The next year, Kudlow crashed to earth—he left the bank and entered rehab for alcohol and cocaine addiction. Laffer stuck by Kudlow, hiring the investment banker to work for his consulting firm in California when he emerged.
In 1996, Forbes, backed by Moore, entered the Republican primary and lost out to Bob Dole, but the group takes credit for getting Kemp picked for the bottom half of that year’s ticket, which lost to incumbent Bill Clinton.
And they have not stopped partying since. Members of the group have continued to actively socialize with each other over the decades, with some spending New Year’s eves together. At one birthday party for Laffer in New York, they presented the aging economist with a signed poster of the Jedi master Yoda. “I’m short, a little bit fat. I’ve got big, green ears,” Laffer explained. “I look sort of like Yoda.”
In 2015, Forbes, Laffer, Kudlow and Moore created the Committee to Unleash Prosperity, a group intended in part to counter the emergence of the “Reformicons,” a rival gang of Republican eggheads who felt the party had gone too far in the direction of laissez-faire policies favoring the rich.
Among the other 29 committee members listed in a press release were both Malpasses, Kevin Hassett, now chairman of Trump’s Council of Economic Advisers, and Andy Puzder, who was Trump’s initial pick for labor secretary until allegations of domestic abuse unearthed by POLITICO derailed his nomination.
The group sought, with considerable success, to vet Republican presidential candidates for their supply-side credentials and to influence their platforms, holding large private dinners at Manhattan venues such as the Four Seasons and the 21 Club, so that committee members and other notable invitees—like Rudy Giuliani and Roger Ailes—could feel out the candidates.
Before meeting with the larger group, candidates would huddle with the committee’s founders to receive economic tutorials. Or in the case of Ohio Governor John Kasich, to give one. “We were all sitting there, and he would talk for an hour,” Moore recalled. “We’re like, ‘No, we’re supposed to be talking to you,’ and he’s talking to us.” Moore called the episode “Classic John Kasich.”
Though the events were supposed to be off the record, journalists often attended, and an otherwise lackluster February 2015 dinner for Wisconsin Governor Scott Walker made headlines when Giuliani barged in, proclaimed he did not believe that President Barack Obama “loves America,” and insisted a POLITICO reporter could print the quote.
When the history of the Trump administration is written, one moment in mid-2017 may be seen as decisive—a moment when a staff member saved the president from himself.
On June 17, according to the report by special counsel Robert Mueller released last week, the president called White House Counsel Don McGahn at home and ordered him to tell the Justice Department to fire Mr. Mueller, just as the special counsel’s investigation into Russian meddling in the 2016 presidential election was getting under way. Mr. McGahn declined to carry out the order.
Then, about six months later, when word of the president’s attempt to fire the special counsel leaked out, Mr. Trump met with Mr. McGahn in the Oval Office and pressured him to deny the account publicly. Again, Mr. McGahn refused.
Had Mr. McGahn agreed to do what Mr. Trump wanted—to have Mr. Mueller fired and later create a false narrative about the effort—the case that the president had attempted to obstruct justice would have been much stronger. As it is, Mr. Mueller declined to say whether the president had or hadn’t obstructed justice; the Justice Department has decided there wasn’t sufficient evidence to show he did so; and Democratic leaders in Congress, much as they are under pressure from activists in the party to impeach Mr. Trump, are skeptical they have a case for doing so.
The Trump-McGahn exchanges point to an important, larger truth: Presidents need people around them who aren’t simply yes-men and yes-women who will blindly do their bidding. They need aides willing to take the tough step of challenging the leader of the free world. One key question is whether Mr. Trump still has enough of them around him.
Anybody who manages an organization recognizes—or should recognize—the need to have subordinates who can walk the fine line between being loyal and being willing to tell the president he or she is making a mistake. Playing that role as a staff member is particularly tough in the rarified air of the White House—and especially in this White House, where the boss has shown a penchant for lashing out at anyone seen as disloyal.
Yet history is replete with examples of the need to have White House aides willing to stand up to the boss. “That lesson cries out” from the Mueller report, says presidential historian Michael Beschloss.
President Richard Nixon, a mercurial man, was self-aware enough to recognize his need for such staff work. When he was preparing to take office, he wrote a memo to his chief of staff, H.R. Haldeman, specifically authorizing him to ignore orders that seemed impetuous or ordered in anger. “There may be times when you or others may determine that the action I have requested should not be taken,” Nixon wrote, according to a definitive biography by John A. Farrell. “I will accept such decisions but I must know about them.”
Mr. Haldeman and others acted accordingly, a practice that proved crucial as Nixon descended into depression amidst the Watergate crisis that ended his presidency. One Nixon aide recalled years later that the president, apparently drunk, encountered him in a White House hallway late at night during the opening phases of the 1973 Arab-Israeli war and seemed to order him to unleash an American bombing attack on Syria. The order was ignored, and apparently forgotten by the president the next day.
Aides to President Ronald Reagan were frequently excoriated by conservatives for failing to “let Reagan be Reagan” when they pushed back against presidential instincts. Yet Mr. Reagan always defended his staff’s right to do so, and disputed the idea that he was being badly served by strong aides.
In his memoir, former Defense Secretary Robert Gates recounts a bitter argument with President Obama over implementation of the “don’t ask, don’t tell” policy that compelled military commanders to discharge or separate gays and lesbians from other troops if their sexual orientation became known. That policy was being disputed in the courts, and there was a movement in Congress to change the law. Mr. Obama wanted his defense chief to suspend implementation of the policy in the meantime.
Though he supported changing the law, Mr. Gates refused, arguing that existing law couldn’t simply be disregarded. Congress soon passed legislation changing the practice, which included a period to certify that a new policy could be implemented smoothly. It’s likely the change went down better with commanders because Mr. Gates had shown the need to abide strictly by law.
The year was 1980, the location was Houston and the question came from the crowd at a presidential primary debate between Ronald Reagan and George H.W. Bush — two bellwether conservatives who would eventually serve together as president and vice president.
Should “illegal aliens,” the crowd member asked, be allowed to attend U.S. public schools?
Bush said immigration policy needed to be “sensitive” and “understanding” toward the “really honorable, decent, family-loving people” that had crossed the U.S.-Mexico border without documentation.
Reagan echoed that sentiment.
“Rather than talking about putting up a fence, why don’t we work out some recognition of our mutual problems, make it possible for them to come here legally with a work permit,” he said. “And then while they’re working and earning here, they pay taxes here. And when they want to go back they can go back.”
.. Reagan’s words that night, and his stance in countless other public and private statements as president, contrast starkly with the false history lesson President Trump offered Friday in an early-morning tweet, hours before a potential government shutdown over funding for the president’s border wall.
.. In fact, Reagan signed a sweeping immigration reform bill into law in 1986, which made any immigrant who entered the country before 1982 eligible for amnesty.
.. “The memorable thing about Reagan is that he was a Californian,” Meissner said. “He was not anti-immigration.”
.. “God made Mexico and the United States neighbors, but it is our duty and the duty of generations yet to come to make sure that we remain friends,” Reagan said during a 1981 welcoming ceremony for Mexican President Jose Lopez Portillo. “Our very proximity is an opportunity to demonstrate to the world how two nations, talking together as equals, as partners, as friends, can solve their problems and deepen their mutual respect.”
.. U.S. Border Control didn’t begin building physical barriers on the southern border until 1990, the year after Reagan left office, in which a 14-mile long “primary fence” was erected in San Diego. It wasn’t completed until 1993.