By Jason Taylor
I’m not sure at what point Donald Trump will come to grips with the full magnitude or the immense responsibility that comes with being the leader of the free world, but I hope it happens quickly. I’m afraid that it will take a tragedy of epic proportions for this to happen. I’m also afraid that given Trump’s lack of experience (none) in this area his response to a 9/11 style event might prove more tragic than the actual event.
The new “president” doesn’t have to script his presidency. Everyone knows that reality-TV shows don’t have scripts. They just follow the often incoherent muddle of incompetent players making it up as they go, sniping at each other, sending snarky tweets and engaging in endless self-promotion.
But this isn’t a TV show, and the government can’t be funded on tax cuts alone. Someone’s got to pay, and the Baboon Hairdo has sent a signal that it won’t be corporations. They’ve just learned that if they threaten to throw people out of work, they’ll get tax breaks. People get to keep their low-wage jobs while company execs get to reap the benefits.
The trouble is that Trump does not have a comprehensive view of the economy. He is used to solving individual business deals where the parameters can be encompassed. The kind of systematic analysis of conditions and circumstances is alien to his mentality. Take for instance the Taiwan incident. For him, it was a question of getting what he yearns for most, praise and self-congratulations.
Trump never thought of the consequences of his action. Much like the Carrier deal, he negotiated: “Ok, you can take 1,300 jobs to Mexico, but you have to give me 800 and in exchange, we will give you a yearly tax incentive”. Never mind thinking of conservative market position or governmental intervention in business. His mind is focused on the immediate without regard to the future. His entire campaign of outlandish promises and offensive statements are part of this pattern.
The only way to raise wages through “natural” market forces is to have worker shortages. It’s the age-old law of supply and demand for the labor market.
Of course, you are tinkering around the edges with all these credits and subsidies. Why use subsidies when you could raise the minimum wage — a move that lifts all wage boats? It’s been eons since it was raised, and God knows wages have fallen in purchasing power since.
Prior tax cuts for the wealthy and the entrepreneurial class, supply side if you will, have not worked because there is no incentive for them to expand when they can simply eke out more efficiencies from getting fewer employees to do the work of many. For some time, employees have been in a rat race of fear: so afraid of losing what income they have, they “gladly” put up with long hours, weekend, work and the rest. No wonder wages have stagnated or moved backward: it doesn’t take a math genius to see the per hour effective wage decreases when somebody is putting in 60 to 70 hours a week.
Let’s face it: employers have held the upper hand for several decades now. You don’t like working around the clock? Fine, I’m swimming in resumes of desperate workers.
It’s going to take the will of government (yes, government!) to rein in corporate regulations that promote the transfer of capital (not labor) overseas.
Donald Trump can’t keep up the pace of strong-arming corporations and other businesses, for political purposes, it is economically self-defeating. Rewarding and giving special breaks to various industries at the expense of the rest of the tax payers is one of the foundations of Fascism.
We are beginning to see the advent of such behavior on the part of Trump and his supporters. Physical intimidation at his rallies, a victory rally at choice locations, speeches telling us what he is going to do, and what business is not going to do under his administration, amid cheers from his admirers, just like the Brown Shirts cheering on the National Socialist Fuhrer.
It is the same pattern used with Krupp. Porsche, Benz, and other industries.
We are also seeing intimidation of the news media and even the entertainment industry. Trump has demanded that SNL retire the most recent skit about him, he has called the reporter’s liars, and unfair, he has unleashed a beginning movement of force and intimidation against Muslims, Hispanics, and Asians.
This is how the Third Reich began, a minority party taking over the control of the Republic. He is going to appoint a Democratic Senator from N. Dakota to a cabinet position, so that she will be replaced by a Republican, preventing a Democratic filibuster, in effect, loading up the Senate.
It is a takeover of the Republic in process. Be afraid, be very afraid.