Finally, Trump the person promised to roll back the regulatory state bloated by the Obama administration, and Trump the policymaker is doing just that. Almost every businessman I have met attributes at least part of the stepped-up rate of economic growth in the US to the fact that he no longer wakes up wondering what the government will do to him rather than for him. And so far it seems that in key areas, such as financial services, deregulation is being practised with a scalpel rather than an axe, more a trimming around the edges of rules that have proved excessively costly rather than the wholesale repeal of laws such as Dodd-Frank.
Not that Trumpian policy is all that it should be. His blinkered attitude towards the need for policies to cope with the possibility that the planet is warming goes far beyond appropriate scepticism of what Barack Obama and others like to call “the settled science of climate change”. The recent tax cuts, and the consequent addition of about $1 trillion to the national debt over the next ten years — $1.5 trillion if you don’t believe the reductions will increase the growth rate and hence generate at least some new tax receipts — were a bad idea. Even the great John Maynard Keynes would not countenance running large deficits in the presence of full employment, and the unemployment rate in the US is now only 4.1 per cent. And he would probably either splutter in rage or fall down laughing at the President’s newly-unveiled $4.4 trillion budget that adds an additional $7 trillion to the national debt over the next ten years.
Fortunately, that budget is DOA at the Congress, which has no intention of cutting social services as Trump’s budget calls for, or of raising taxes without White House support. Instead, Micawber-like, Congress seems to be hoping that something will turn up to prevent the country from going over the fiscal cliff towards which it is racing. Only an acceleration by the Federal Reserve Board of its plans gradually to raise interest rates, or a rescue by the so-called “bond vigilantes”, investors who sell off bonds to drive their prices down and thereby drive up interest rates, can restore a bit of sanity to economic policy. It is just such a fear — that interest rates might rise to 3 per cent — that prompted the spectacular share sell-off early in the New Year. Trump, the titular leader of the Republican Party — in fact, a New York Democrat who engineered a hostile takeover of the Republican Party — has ended his adopted party’s long-standing position as guardian of the national fisc and of money that is worth as much tomorrow as it was yesterday. Trumpian populism has thus gone the way of older populist movements that have cropped up in the course of America’s history. These favoured inflationary printing of money to enable debtors to repay their loans with cheap money, something with visceral appeal to Trump, a perpetually over-indebted businessman who in that life styled himself “the king of debt”.
Which brings us from Trump, the highly flawed Person, and Trump, the Policymaker with both sensible and nonsensical policies to his credit or blame, to Trump the President. And it is here that the debate becomes most difficult to resolve. There are some, and not only members of Trump’s core, who say we must view Trump the Person and Trump the Policymaker separately to form a reasonable view of Trump the President. The Person, they concede, is appalling — post-literate in the words of Steve Bannon, Trump’s one-time self-styled puppet-master, now in exile after aiding and abetting the writing of Michael Wolff’s
Fire and Fury, or
Sopranos on the Potomac as
Financial Times editor Lionel Barber would have it. A vulgar consumer of McDonald’s Big Macs, chocolate milk shakes, and Fox News, the Person is not a man with whom you would choose to associate. But that, they contend, is a separate matter from his policies, which have put the country on the right track.
His trade policy is set to end decades in which the elite’s reverence for free trade blinded it both to Adam Smith’s warning of the need to retaliate against protectionist trade practices by trading partners, and the devastating effect of unfair Chinese trading practices on entire communities.
His efforts to stem the tide of illegal immigration, and replace the current legal system with one based on merit, is the policy that best serves American interests.
His deregulation policy is uncaging the animal spirits of American entrepreneurs and businessmen, and ending an era in which sub-par economic growth was accepted as “the new norm”.
His fiscal policy might some day unleash inflationary pressures, although none such seem in view at the moment, but at least it has made possible the end of a cash drought that has reduced the military to curtailing training exercises and cannibalising planes and weapons for spare parts.
And his belligerent foreign policy forced North Korea to seek an easing of the pressures on it by a show of comity at the winter Olympic games in South Korea, and at least some Nato nations to step up their military expenditures.
To which the response is that it is impossible to separate the Person from the President, no matter the Policies pursued. Just as the flawed person that was Richard Nixon, who had among his credits the opening to China, eventually brought him down, so, too, with Donald Trump. His personal behaviour has demeaned the office he holds, and reduced America’s standing in the world. Polling by the Pew Research Center shows “a considerable drop” in the share of the public in 37 countries that hold “a favourable view” of America, a worrying trend in a world in which we will need allies in dealing with Iran, North Korea and other bad actors. His misrepresentations about seemingly trivial matters such as the size of the crowd at his inaugural, the margin of his victory over Hillary Clinton, the size of his tax cuts relative to those of his predecessors would be worrying if, as his critics claim, they were mere lies. But I think they are worse than that: what Cole Porter calls self-deceptions that believe the lies. A President who can’t accept reality is a danger to the nation, if not the world, and should be removed even if some of his policies warrant applause.
That debate will not be resolved soon. Meanwhile, the November elections loom on the horizon. If the Democrats gain control of the House of Representatives in November, now deemed more rather than less likely, and vote to impeach the President, as they will almost certainly try to do, even though the Senate is unlikely to vote to remove Trump from office, ugly will turn uglier in an America already “at war with itself”, as Dov Zakheim put it in a recent issue of this journal.
Meanwhile, we can take comfort from Pulitzer Prize-winning columnist Charles Krauthammer’s observation that “at . . . critical junctures, the sinews of our democracy held against the careening recklessness of this presidency”. The courts did not allow Trump’s ill-considered restrictions on Muslim immigrants to take effect; senate support for Attorney General Jeff Sessions prevented Trump from firing him; a threat by his own counsel to resign prevented Trump from firing Robert Mueller III, special counsel investigating possible obstruction of justice and collusion with the Russians during the presidential election; Trump could not persuade the Congress to repeal Obamacare; some of his least attractive nominees for positions in the government could not obtain Senate confirmation and have withdrawn from consideration. Surveying year one of the age of Trump, Krauthammer concludes: “The guardrails of our democracy — Congress, the courts, the states, the media, the Cabinet — were keeping things in bounds.” So far.