From The Ramparts

Trump’s Boneheaded Policies

Junious Ricardo Stanton

“ The Trump administration is practicing gunboat diplomacy, perfectly emulating the philosophy and means of the [defunct] British Empire, against the entire world, even its allies [many of whom are de facto US occupied territories, like Western Europe & the Balkans]. For those upstart enthusiasts who claim NATO is an alliance, and not an occupation, I ask them – how many European troops and European military bases are on United States soil? None. I rest my case.” On The Brink of War Serban V.C. Enache http://hereticus-economicus.info/on-the-brink-of-war/

Donald Trump, contrary to his campaign rhetoric about ending ceaseless wars, regime change foreign policies and wanting a good trade relationship with Russia is doing everything in his power to bully and intimidate the world into acquiescing to the US Empire. Trump is currently engaged in a trade war with China one that fantasizes he is going to win and make America great again.

The problem with Trumps premise is, his trade wars with China, the EU, Mexico and Canada are not going to totally reverse NAFTA, the off shoring of US factories and jobs to developing countries. The financial power brokers and policy makers who deindustrialized the US, shipped US jobs and capital overseas are not going to reverse field and bring factories, jobs or capital back, despite the tax cuts and deregulation that have benefitted the uber rich.

Even if you discount the government’s emergency appropriations due to the floods, fires and draught, Trumps tax cuts have raised the federal deficit even higher than the Congressional Budget Office predicted due to federal spending on “defense” and support for US farmers who have been devastated by Trump’s trade war with China.

Trump’s tax cuts are not paying for themselves in job growth or increased GDP like the Republicans said they would. As I predicted in 2016-17 Trump’s tax cuts have driven the federal deficit higher.

 “In December 2017, as Republicans sped the tax cuts through Congress, the Tax Foundation released a projection that the cuts would add about $450 billion to federal deficits over 10 years, after accounting for the additional economic growth it would spur. The group has since redone the analysis, with what Mr. Pomerleau called improvements to its methodology. It now predicts deficits will increase by $900 billion — double its original forecast.” https://www.nytimes.com/2019/01/11/business/trump-tax-cuts-revenue.html

The federal deficit is not the subject of this article I point it out merely to show how Trump’s domestic policies are not working as he and his fellow snake oil salesmen said they would. Coupled with his tax cut issues and the Federal Reserve raising interest rates, real GDP is actually slowing due to rising costs which is what happens when you stop giving out below zero interests rates then abruptly raise interest rates, the system goes into shock.

Trump’s trade war, his tariffs and renegotiated deals with Mexico and Canada are not going to return the US to industrial prominence and the overall benefits of the renegotiated deals will be modest. “President Trump's update of the North American Free Trade Agreement (NAFTA) would provide a very modest boost to the economy, according to a report released Thursday by the U.S. International Trade Commission (ITC). The United States-Mexico-Canada Agreement (USMCA) would increase economic growth by 0.35 percent, or $68.2 billion, and create 175,700 jobs, the government agency projected. Wages would rise 0.27 percent, and the largest increases would be in manufacturing and mining, with the average wage climbing 0.43 percent among lower-educated workers. U.S. trade with Canada and Mexico would increase and reduce the trade deficit with Mexico by $1.8 billion under the agreement. Exports to Mexico would get a $14.2 billion boost, compared with $12.4 billion in new imports. The bilateral trade deficit with Canada would stay the same, with $19.1 billion in new exports countering $19.1 billion in imports.”  https://thehill.com/policy/finance/trade/439600-government-report-says-new-nafta-would-have-minimal-impact-on-economy. As usual Trump’s rhetoric far exceeds the reality. The tariffs are negatively impacting US businesses and consumers as the costs get passed on to regular folks.  https://www.cnbc.com/2019/05/12/goldman-trump-tariff-costs-fall-entirely-on-us-businesses-households.html

            On the international front, Trump is threatening nations with sanctions everywhere you look. https://iapss.org/2015/05/30/economic-sanctions-a-violation-of-human-rights/ Economic sanctions and embargos are war without bombs and missiles. Just like in a physical war the main victims and casualties are innocent civilians. Trump like his predecessors is a war criminal! None of the countries Trump is sanctioning pose a military threat to the US, only Russia and China have a military or armaments capable of challenging the US/NATO axis of insanity.

            In the end Trump’s policies will not have the desired impact. Check out how US farmers are doing, US wages are still stagnant, organized labor is still under attack, watch as consumer prices continue to rise due to Trump’s trade wars and Fed interest rate manipulation; and wait until the people realize they have been hoodwinked and duped by this con man.

                                                            -30-