What does Donald Trump call business? His livelihood is the rationale for his candidacy—“that the basic function of the government is deals. And you need a president who can do deals. And he has a record of doing deals,” as Michael Kinsley put it—and yet his particular idea of business had not, until last night, been discussed much during this campaign season. His Republican adversaries in the primaries had spent careers celebrating the virtues of capitalism; during the general election, some rigorous early scrutiny of his finances faded when it became obvious that, even if he wasn’t as rich as he claimed, he was still very rich. Last night, Clinton, with Trump’s help, sharpened the portrait of Trump the plutocrat. “The wealthy are going to create tremendous jobs,” Trump insisted, in trying to explain why tax cuts for the richest Americans would be good for those who had been left behind. The billionaire acknowledged that in some years he had not paid taxes, and said that, even if he had, “it would be squandered.” Hillary Clinton won this debate in many ways, but her attack on his ways of doing business cut the deepest: she Romneyed him.
.. He bragged about opening a private club in Palm Beach (“a tough community”) that included African-Americans and Latinos, as if that insulated him against all charges of racism. He seemed basically resistant to the notion that he had some obligation to contribute to the public good.
.. When George W. Bush (“the M.B.A. President”) and Mitt Romney ran on their business records, the proposition was that business provided a theory of how the world worked and how executives ought to behave.
.. One gift of this debate to Clinton’s party is that he now looks like a much more familiar target: a rich guy who is out for himself.
The Extraordinary Intimacy Between the Ultra-Rich and Their Wealth Managers
For the one percent, a good advisor acts as a bookkeeper, a confidante, and, on occasion, a fishmonger.
.. While retaining legal counsel or consulting a financial adviser now commonly leads to short-term relationships, wealth managers maintain clients over the long term, sometimes amounting to lifetime employment.
.. It is not uncommon to find wealth managers working with the children or grandchildren of their original clients.
.. As one manager put it, the client has to “undress” in front of the wealth manager.
.. As a fiduciary, the wealth manager is bound to protect clients’ wealth from risk: This includes not just financial risk but the threat of spendthrift heirs dissipating the family assets or of family members with embarrassing secrets who might be targeted for blackmail.
.. one manager in Dubai described her client relationships in terms that emphasized the emotional labor and caring involved: “They’re asking you to take care of their family. You can’t just think of it as another piece of business … It’s not just a matter of signing documents; it’s the whole concept of doing the right thing for that family. You have to be able to say, ‘Mr. A., don’t worry—your kids are all going to be put through university. It’s all going to be okay.’ You have to be very businesslike. But also family-like.”
.. An English wealth manager based in Dubai explained that such outlandish requests are surprisingly common in the profession, in part as a way of testing whether the practitioner is “worthy” of the client making a long-term investment in the relationship:
.. And they don’t like change: they want to go to the same doctor all their lives, the same dentist, and the same lawyer or fiduciary.”
.. I said, “I’m your wealth manager, not your fishmonger.” And the client said, “Well, today you’re a fishmonger.”
.. Clients may also have a pragmatic reason for posing these tests: They allow the client to discover whether the wealth manager possesses the kind of social networks and influence necessary to provide extraordinary personal service.
.. a study of 19th-century British lawyers showed how their familiarity with clients’ business dealings allowed them to create whole new industries, such as the country’s railroad system; the professionals established a kind of private market, accessible only to the upper crust of British society.
.. Several specifically mentioned helping clients get treatment for their drug-addicted children—a particularly common problem in wealthy families.
Donald Trump Sells Out to Trickle-Down Economics
I thought at the time that adopting trickle-down economics represented a strategic error for a candidate who was promoting himself as a new type of Republican. Instead of saying he’d slash business taxes and bring the top rate of income tax down to twenty-five per cent, Trump could have promised tax cuts and tax credits targeted specifically at middle-class Americans, citing the fact that wealthy Americans were doing fine and didn’t need another handout.
.. A plan aimed at the middle class, however, could have complemented Trump’s populist line on immigration and trade, wrong-footed the Democrats, and allowed him to claim he had a three-pronged approach to raising wages and living standards. In short, it would have made him a much more formidable candidate.
.. The proposal to eliminate the estate tax, which the Bush Administration suspended for ten years, also mimics Ryan’s plan, as does the call to slash the corporate tax rate, which currently stands at thirty-five per cent. In this instance, though, Trump outdid the House Speaker is his largesse toward the business class. Ryan would cut the corporate tax rate to twenty per cent; Trump to fifteen per cent. About the only residue of populism related to taxes in Trump’s presentation on Monday was a reiteration of his pledge to eliminate the notorious carried-interest deduction
.. many poor families don’t pay much federal income tax: social security is their main burden. Secondly, the fact that it would be a tax deduction rather than a tax credit means that wealthy families would get a much bigger break. “Making child care fully tax deductible is just about the worst possible way to help subsidize the cost of child care,”
.. What made Trump attractive to many Republican voters was his eagerness to move away from the standard narrative about blaming big government and high taxes for everything, and his stated willingness to challenge the vested interests that had dominated the Party for so long.
.. During the primaries, his claim that he was beholden to no one was one of his biggest assets. Since he got the nomination, however, it has become very clear that he’s far from an independent operator. Unable or reluctant to finance and organize his own Presidential campaign, he has been forced to come to terms with the G.O.P. establishment, the wealthy interests that finance it, and the anti-government, anti-tax economic philosophy