Category: Congress

Trump’s Record so far

So far Trump II has made or is making a number of changes that have benefited our economy.  However, his delivery on his key campaign promises is mixed.

Trump promised to “stop the migrant invasion,” and to carry out “the largest deportation operation in American history.” He delivered. Southern border attempted entries that were blocked in 2023 and 2024 of 2,475,670 and 2,135,000, dropped to 237,538 in 2025 and authorized new arrivals dropped from 2.9 to 2.8 million in 2023 and 2024 to less the 2,000 in 2025. Deportations and voluntary exit jumped from over 460,000 and 700,000 in 2023 and 2024 to over 2,500,000 in 2025 of which and estimated 1.9 million were self exits.

However, the behavior of masked ICE agents, including the deaths of over 30 people in ICE custody in 2025 have created a public outcry.  In 2024 and earlier, the majority of ICE arrests focused on those with criminal records. In 2025, the government stated that 70% of ICE arrests involved individuals with criminal charges or convictions. However, independent analyses of 2025 data suggested that only 23% of those targeted in broader sweeps actually had prior criminal convictions, with many of those being for minor traffic or immigration offenses.

Trump also promised to “End inflation and make America affordable again,” and to “Stop outsourcing” and turn the U.S. into a “manufacturing superpower” by bringing factories back to the United States by tightening trade policy. The high CPI inflation rate of 4.1% in 2023 has fallen to 2.9% in 2024 and 2.7% in 2025. Manufacturing value added to US total output was $2.91 trillion in 2024 rising to $2.95 in 2025 all in 2017 dollars.

The US imports more than it exports. The US trade deficit in 2024 of $903.5 billion changed little at $901.5 billion in 2025, but the highly criticized and erratic US tariffs on imports (both threatened and actually imposed) where eventually struct down as illegal by the Supreme Court. They were not approved by Congress and where not justified to correct unfair trade practice by China, the EU and others. Rather they were threatened punishments if the target country did not give in to some other Trump demand. Here is an example of such an attempted abuse of tariffs. https://x.com/spectatorindex/status/2041842665172693207

Trump was right to promise to reduce costly and unproductive regulations and bureaucrat bloat. But his approach with the help of Elon Musk and the DOGE swat teams was misdirected and destructive. https://wcoats.blog/2025/04/27/trumps-chainsaw/

https://wcoats.blog/2025/07/01/econ-101-government-budgets/  Just how bad the Musk DOGE chainsaw was can been seen in the following deposition of one of the totally unqualified kids swinging the chainsaw. He is being questioned by a lawyer for an agency suing DOGE https://www.youtube.com/watch?v=NXXvgZzK0Cc

And then there is the rest. Unlike previous US Presidents, Trump’s style of governing was that of a bully making threats. The result has not been good.

Trump the Egomaniac:  Putting his name on the Kennedy Center was sort of harmless (but distasteful) but then shutting it down all together is much less so and, and as is so often the case with Trump, hard to understand. The United States Institute of Peace is now the Donald J Trump Institute of Peace. Then there are programs he has created in his name: Trump accounts, Trump Gold Card, TrumpRx, Trump National Parks pass, etc. But he hasn’t stopped there, creating the “Trump-class” battleship. Though it violates the tradition of the U.S. Treasurer, currently Brandon Beach, signing our currency notes, Trump will do so in the future. While most of these displays of Trump’s name might be taken as the actions of an immature child, his proposal to issue special one dollar coins with his likeness seems to violate more than just good taste.

Trump the Authoritarian (postliberal)–domestic:  We have gotten used to Trump using his Truth Social or X/twitter accounts to damn and/or label as stupid or evil those who have criticized him, but he has used the power of his office to much more seriously attack his enemies or to force compliance with his policy views.

For example, after firing FBI director James Comey, who oversaw the probe of ties between Russia and Trump’s 2016 Presidential campaign, Trump repeatedly called for investigations of Comey over alleged leaks and handling of memos, and his current Justice Department has pursued renewed inquiries premised on those same grievances. Similarly motivated DOJ indictments or investigations have been made against Trump appointed officials John Bolton, Letitia James, Robert Mueller, Andrew McCabe, John Brennan, and others who played leading roles in Russia‑related or Ukraine‑related investigations.

Beyond criminal investigations, Trump has repeatedly used or threatened non‑criminal tools of the presidency—regulation, funding decisions, security clearances, and administrative enforcement—to punish domestic opponents. He has used threats to cut off federal funds to Democratic‑led “sanctuary cities” or jurisdictions whose leaders criticize him, framing them as “anarchist” or lawless and directing DOJ and other agencies to look for legal hooks to withhold grants.  Reuters and civil‑society trackers describe cases where universities, law firms, and other entities changed diversity or governance policies after threats of lost contracts, funding, or investigations from the administration. https://protectdemocracy.org/work/retaliatory-action-tracker/

If you have wondered, as I have, why the Republicans in Congress have not exercised their constitutional rights to block Trump’s abuses of power, often in direct contradiction of Republican party principles, I assume that it is their fear of his vindictive attacks on anyone who criticizes him.

Trump has both threatened and actually moved to cut federal funds to a small but high‑profile group of universities, mainly to force changes on campus protests, DEI, admissions, and governance policies. At Harvard University billions in federal research grants and contracts were frozen or terminated starting in spring 2025. The reasons given by the Trump administration were the alleged failure to protect Jewish students and to tolerate antisemitism linked to pro‑Palestinian activism and criticism of “woke” policies, DEI programs. The Trump administration demanded leadership and governance changes, review of academic departments for perceived ideological “bias,” and changes to admissions policies. Harvard has filed legal challenges and publicly refused to accept some of the administration’s conditions, while still facing a major funding freeze.

Similar reasons were given for stopping and/or threatening to stop funding of contracts and projects at Columbia, Cornell, Northwestern, and Princeton, University of Pennsylvania and UCLA.  These are the tip of an ugly iceberg that are very inappropriate in our liberal, limited government, freedom loving country.

But not all demands were objectionable.In October 2025, the White House offered a formal “compact” tying preferential access to federal funding to a raft of ideological and policy conditions that were agreed to by nine universities.Vanderbilt University.Dartmouth College.University of Pennsylvania.University of Southern California.Massachusetts Institute of Technology (MIT).University of Texas at Austin.University of Arizona.Brown University and University of Virginia.

Key policy demands in the compact included:

  • Ban consideration of race or sex in admissions and hiring.
  • Cap international undergraduate enrollment at around 15% and subject foreign students to additional vetting.
  • Freeze tuition for several years.
  • Eliminate or sharply curtail DEI offices and programs.
  • Guarantee “ideological balance” or a “vibrant marketplace of ideas” without a dominant ideology

Trump the untrustworthy Bully –International: Trump pledged to serve American interests first, promising to end America’s forever wars and claimed to deserve the Nobel Peace Prize. Virtually every aspect of his foreign policy has been a failure, weakening our standing abroad and our national security.

The second Trump administration has ended no wars, conducted military strikes in at least seven countries, and with Israel started a new war in Iran. It has been complicit with Israel in the ethnic cleaning of Gaza and increasingly the West Bank, and by financial and armament support of Israel. Trump has weakened or lost the support of traditional allies with his threats to annex Canada and Greenland and his insults of European and other countries for not supporting his illegal war in Iran and more generally.

Bully Trump’s approach is illustrated by his spat with Pope Leo XIV. On Truth Social Trump proclaimed:

“Donald J. Trump

@realDonaldTrump

A whole civilization will die tonight, never to be brought back again. I don’t want that to happen, but it probably will. However, now that we have Complete and Total Regime Change, where different, smarter, and less radicalized minds prevail, maybe something revolutionarily wonderful can happen, WHO KNOWS?”

On April 19, 2026, Trump warned that the U.S. would “knock out every single Power Plant, and every single Bridge” in the country if they did not accept a new “DEAL,” Not that Trump cares but many of his threats, specifically those targeting civilian infrastructure like water and power plants, have been flagged by international human rights groups as potential violations of international humanitarian law.

Pope Leo XIV declared President Donald Trump’s threat to destroy “a whole civilization” unacceptable and suggesting Americans should contact their representatives in Congress to stop the conflict.

“Today, as we all know, there has also been this threat against the entire people of Iran.  And this is truly unacceptable. There are certainly issues of international law here, but even more, it is a moral question concerning the good of the people as a whole, in its entirety.

“I would like to invite everyone to think in their hearts of so many innocent children, so many totally innocent elderly people who would also be victims of this escalation. I would like to invite everyone to pray, but also to seek ways to communicate. Perhaps with congressmen, with authorities, saying that we don’t want war, we want peace.”

Trump responded by calling the Pope “Weak on crime” and “Weak on Nuclear Weapons” and falsely claiming the Pontiff agreed that Iran should have nuclear capabilities. In his Easter Sunday message the Pope said: “Let those who have the power to unleash wars choose peace.”

Trump’s failure to understand market trades and deals as win-win has fed his zero sum bully approach. America has been seriously damaged as a result.  Trump has either ignored or withdrawn from the international agreements or organizations such as the WTO, and WHO that have provided the basis of global cooperation and flurishing since WWII. And we have suffered as a result. https://wcoats.blog/2026/03/21/america-alone/  

Trump’s disregard for law has also been an element of his financial corruption, the details of which will hopefully be properly investigated.  Since returning to the White House for his second term, Trump’s net worth has grown by approximately $2.5 billion to $3 billion according to most financial trackers. Trump’s Presidency has been very bad for America.

Trump’s Board of Pease and Founding Executive Board

Trump’s current Gaza “peace plan” presented last September combines a 20‑point ceasefire and demilitarization while promising large‑scale reconstruction and investment. The ceasefire starting October 10 and hostage return that “ended” Israel’s two-year attack on Gaza following Hama’s Oct 7, 2023, attack on Israel, is to be followed by rebuilding the totally flattened Strip.

Hama’s Oct 7 attack killed 1,400 Israelis and Israel’s counterattack has killed over 72,000 Palestinians (over half of them women and children) with more yet to be counted under the rubble. Moreover, the attacks and blockage of food and medical supplies since the “ceasefire” starting October 10, have resulted in almost 500 more Palestinian deaths.

The next phase is the rebuilding of the buildings destroyed by Israel during its war on Hamas. For this purpose President Trump has created a Board of Peace. Wikipedia reports that: “Donald Trump is explicitly named in the Charter of the Board of Peace as its inaugural Chairman. The chairman has no term limit, and they alone have the authority to nominate their designated successor. Only the Chairman has the ability to invite countries to join the board. The Chairman has the exclusive authority to create, modify, or dissolve subsidiary entities of the Board of Peace. All revisions to the Charter and administrative directives issued by the Board of Peace are subject to approval by the Chairman.[1] Trump’s chairmanship of the Board of Peace is independent to him holding the presidency of the United States and he has indicated that he would like to remain chairman for life.” “Board of Peace”

“To operationalize the Board of Peace’s vision—under the chairmanship of President Donald J. Trump—a Founding Executive Board has been formed…. The appointed members are:

  • Secretary Marco Rubio
  • Steve Witkoff
  • Jared Kushner
  • Sir Tony Blair
  • Marc Rowan
  • Ajay Banga
  • Robert Gabriel”.

White House statement on President Trump’s comprehensive plan to end the Gaza conflict”

A long list of countries, including Canada, France, Germany, Italy and other European nations, were absent from the signing of the Board of Peace in Davos, and some have specifically rejected the invitation.  And why should they join an organization that puts Trump in charge of the world for life.

“His plan is to strip the United Nations – and thereby the international community – of any oversight of Gaza’s fate…. The US president hopes his “Board of Peace” will deliver the knockout blow, supplanting the UN and the system of international law it is there to uphold.” “Trump’s Board of Peace is the nail in the UN”

These concerns for the status of the UN are important, but I want to flag a different flaw in Trump’s “peace” plans having to do with its rebuilding.

“Jared Kushner on Thursday unveiled a sweeping U.S.-backed vision at Davos to rebuild the war-torn Gaza Strip into a “New Gaza” economic hub by 2035,” “Jared Kushner unveils new Gaza”  These plans reflect the statements made by Trump one year ago in which he proposed that the United States should “own” the Gaza Strip, “level the site” (clear the ruins) and build resorts there, calling it “the Riviera of the Middle East.” Rights groups and major news outlets noted that behind these pledges to make Gaza a “Riviera of the Middle East” was a plan to permanently “empty” Gaza of its more than 2 million Palestinian residents and not allow them to return. Trump said Palestinians would be moved to neighboring states such as Jordan and Egypt, providing them with “much better housing” and a “beautiful location” elsewhere.

In a statement by Tony Blair: “For Gaza and its people, we want a Gaza which does not reconstruct Gaza as it was but as it could and should be.”

What is missing in these plans is recognition that Gaza is the home of and owned by two million Palestinians, who surely should have a say in its future.

“What is Israel’s objective in Gaza”

ICE and immigrants

Virginia’s new governor, Abigail Spanberger, has made a big mistake. One January 17, Governor Spanberger signed Executive Order 1, which rescinds a previous directive from former Governor Glenn Youngkin that had required state police and corrections agencies to cooperate with ICE. I assume that like me most American’s want better control over illegal immigration and some, like me, what more legal immigration.

Surely when illegal immigrants are caught and convicted of a crime, they should be deported. Such persons are generally held in American jails. Thus, the proper and most efficient way to deport them is for local officials to turn them over to ICE. Governor Spanberger has made Virginia a sanctuary state. While the overwhelming majority of illegal immigrants have not committed any crimes other than overstaying their visas, President Trump even in his first term was determined to deport them, presumable at the urging of the immigrant hater Steven Miller.

As an aside, recently deceased CATO Vice President David Boaz’s husband was also named Stephen Miller and depending on which one we were referring to we said, “the good Stephen Miller” or “the bad Stephen Miller.” Even though first term Trump didn’t resort to masked ICE agents grabbing foreign looking people off the street, his push to deport illegals was very disruptive. “Illegal aliens”

We need to take a another shot at passing immigration reform legislation identical or similar to the 2013 legislation that passed the Senate but not the House. In the meantime, the masked ICE agents should be limited to deporting illegal immigrants who have been properly convicted of crimes. Their current behavior is disgusting and turning good hearted American’s off (that excludes the Bad Stephen Miller, of course) on the whole effort. This includes arresting reporters and American citizens in complete violation of our principles and laws. The Justice Department should take time off from prosecuting Trump’s critics and prosecute these ICE crimes (including murder). Trump seems to be reducing illegal immigration by making America as unattractive as possible, hardly making America great again.

The list of ICE misbehavior is long and growing: “Minnesota immigration detained US citizen”

But the attack on our values runs deeper than just violating our laws as explained in an article by Radley Balko:

“The lies this administration is telling about Ms. Good aren’t those you deploy as part of a cover-up. They’re those you use when you want to show you can get away with anything. They’re a projection of power….

“It’s one thing to tank or slow-walk an investigation. It’s quite another to publicly declare that no investigation will happen on any level and then announce that you’ll be investigating the victim’s partner and supporters instead. Both paths are unethical and corrupt. Undermining an investigation at least pays lip service to the idea of accountability and public trust. The administration’s actions in Ms. Good’s case are a declaration that there will be no accountability and that it would prefer to instill fear rather than trust.”

Sanctuary cities and states should cooperate with Immigration officials by handing over illegal immigrants who have been convicted of crimes and Congress should get serious about passing sensible legislation. “Immigrants from hell”  “We need comprehensive immigration reform now” In the mean time ICE should take off their masks and get off the street.

The Rule of Law

The U.S. bombed seven countries under President Trump’s orders. Congress has not authorized or approved any of them. “US bombed seven countries in 2025 as trump dramatically expanded airstrikes”  This is perhaps the most serious end of Trump’s disregard for law. At the almost trivial end I have received more than half a dozen emails from “Trump” daily for many months. I carefully unsubscribe from each of them (over a hundred times) but they keep coming.

Trump has removed the established guard rails against executive abuse (e.g. all Inspector Generals have been removed). He has put an incompetent sycophant in charge of the Defense Department (appropriately renamed the War Department) who has fired senior military generals and admirals and replaced them with his loyalists. “Trump pushes out top US general-nominates retired three star-2025-02-22”  And the Attorney General’s office regularly takes his orders etc. After illegally sending National Guard troops into LA, Portland OR, and Chicago he is finally removing them in response to the Supreme Courts confirmation of lower court rules of their illegality. “Trump national guard in Chicago Los Angeles Portland”

Trump’s disregard for the law in his effort to deport all illegal residents has become particularly ugly and damaging to the US economy https://wcoats.blog/2025/12/28/ice/

As each violation of law and norms becomes “normal,” Trump pushes further. Is anyone left to stop him? Is Congress slowly waking up to do its job?

Portland, Oregon

Three years ago (June 2022) I accepted an invitation to speak at the Western Economic Association meeting in Portland Oregon because it provided the opportunity to visit with my family. My daughter and her two kids live near Seattle and my son and four of his five kids live in Vancouver Washington across the Columbia River from Portland. My daughter and her kids came down to Portland for the occasion and we have a wonderful dinner together in the city.

Serious crime peaked in Portland that year with 95 homicides.  We were also aware of the unsightly presence of the homeless sleeping on sidewalks. Since then serious crime has rapidly declined, with homicides falling to half that number in 2024. President Donald Trump has repeatedly described Portland as “war ravaged” and a “hotbed of violent protest activity”.  He has directed the Secretary of War, Pete Hegseth, to deploy troops to protect Portland and ICE facilities from groups like Antifa which he refers to as “domestic terrorists”. Antifa, by the way, is not an organization but rather a term to describe those fighting fascism.

“Trump on Saturday said he had authorized the use of “full force” if needed to suppress protests targeting immigration detention centers.  Oregon has responded by suing the Trump administration, arguing that the deployment of the National Guard to Portland is “unlawful”. The lawsuit, filed on Sunday by Oregon Attorney General Dan Rayfield, called the move “provocative and arbitrary”, and said it “threatens to undermine public safety by inciting a public outcry”. https://www.bbc.com/news/articles/cddmn6ge6e2o

Federal Judge Karin J. Immergut, a Trump appointee during his first term, blocked Trump’s activation of 200 state Guard troops, then issued a second ruling stopping the administration’s workaround—sending troops from Texas and California instead.

In a letter from my Senator, Tim Kaine, he stated that “President Trump issued an executive order directing Secretary Hegseth to establish new “specialized units” within the National Guard, explicitly trained and equipped to address “public order issues” and available for rapid nationwide deployment. While the National Guard already maintains reaction forces under the command of state governors, this order blurs the line between military support and domestic law enforcement and raises unresolved questions about chain of command, federal authority, and compliance with the Posse Comitatus Act. By creating a framework that could allow federal authorities to bypass governors and insert Guard units into local jurisdictions, the order heightens concerns that the Trump Administration is seeking to normalize the use of the military in routine public safety functions and expand such deployments beyond Washington, D.C. into other U.S. cities.”

We are surely used to Trump’s many lies, so why have I given so much space to lies about Portland? While addressing the strangely assembled Admirals and Generals at the Marine Corps Base in Quanitico on September 30, Trump suggested that his deployment of the military to American Cities could provide a training ground for our “enemies within.” These uses of our “defense” forces against our own people is unprecedented and totally against American law and practice.

President Trump said Monday that he may invoke the Insurrection Act to deploy federal troops to Portland, calling ongoing protests there a form of “criminal insurrection.” The Insurrection Act permits the federal deployment of troops in extreme cases. Surely the courts will block him.

Week after week Trump has chipped away at our constitutional protections. After each “small” step into autocracy is absorbed, he takes another. He has fired the Inspector Generals, who are meant to provide a guard rail of oversight against government abuses of power, and violated the customary autonomy of the Justice Department by instructing the Attorney General to go after his “enemies,” (not just Comey). What might be next? And where (and how) will it end?

Immigration

what is the problem and what should be done?

The United State—a nation of immigrants—is the most prosperous nation in the world because of the freedom of its residents to innovate, work hard, and seek out what the public wants to buy (i.e. to profit). Many of the founders of our most successful companies (e.g., Google, Tesla, Panda Express, Uber, WhatsApp, eBay, Stripe, PayPal) are first generation immigrants. Immigrants are drawn to America because it offers such opportunities, thus we tend to attract the best and brightest. “Immigrants from hell”

Along with the clear benefits of immigration, it poses challenges and some costs as well. The internal migration of people within a country as new jobs or tastes result in people moving into new homes and neighborhoods produces most all the same issues as immigration of foreigners from abroad. We live in communities and have rules (even laws) for our rights and those of our neighbors. What we do effects then and vice versa.

Before moving back to Crystal/Pentagon City in Arlington Virginia, we lived in a 64 home (two acres each) community in Bethesda Maryland with a convenient reflecting very ridged rules for what we could and could not do on our property in order to preserve its natural wooded environment. This is what we were buying. But over some decades more and more families with children moved in with different tastes and desires (e.g., basketball hoops visible from the road). Many community discussions were held, and some rules were adjusted but it required a lot of community discussion.

Our immigration laws are inadequate. We need more immigrant workers and entrepreneurs and better border control, i.e., we need more legal immigration and better control of the illegal sort.  Laws to give immigrants legal status are inadequate and not consistently enforced. “illegal aliens” In 2013 a bipartisan bill to address these problems (The Border Security, Economic Opportunity, and Immigration Modernization Act of 2013) passed the Senate by 68-32 in favor but sadly failed to pass the House. Quoting from Wikipedia:

“If enacted, the bill would have made it possible for many undocumented immigrants to gain legal status and eventually citizenship. It would have increased border security by adding up to 40,000 border patrol agents. It also would have advanced talent-based immigration through a points-based immigration system. New visas were proposed in this legislation, including a visa for entrepreneurs and a W visa for lower skilled workers.[6] It also proposed new restrictions on H1B visa program to prevent its abuse and additional visas/green-cards for students with science, technology, engineering, and mathematics (STEM) degrees from U.S. institutions. The bill also included a $1.5 billion youth jobs program and repealed the Diversity Visa Lottery in favor of prospective legal immigrants who are already in the United States.”

Refugees pose a special challenge (e.g. Afghans who worked for the US or international bodies and are thus suspect to the new Taliban government) as do the “guest” seasonal workers in California’s farmland. If Congress is up for serious work they should get to it.

Police state

Congress has struggled for decades to adopt a workable immigration and border security policy. Several reasonable proposals have been advanced over the past several decades but never crossed the finish line. We need more immigrants but of the legal sort. But getting the balance right is not easy.

The path for legal immigration should be widened while border enforcement and workplace employment of illegal residents should be made more difficult. More judges are needed to process refugee applicants much more quickly. How tighter rules are implemented matter. The Trump administration’s current approach is wrong and contrary to American norms. It’s as if he is leading the country step by step to a coup. https://www.washingtonpost.com/opinions/2025/06/11/immigration-arrests-ice-raid-masks/

Trump’s Chainsaw

I assume that I approve of many of Trump’s cuts or closers. But how can I know? His executive orders do not include or are not preceded by a discussion of the issues involved and the pros and cons of alternatives, as is customary in free societies.  As our government is supposed to reflect the will of the people, it is essential that “the people” debate the desirability of polices and their adoption. In the end they need to be accepted by us as desirable or at least OK. My goal is a federal government limited to powers granted in our constitution, delivering only those services that are wanted and doing so as well and efficiently as possible.

But Trump takes a different approach.  Lindsey Halligan told Trump that the Smithsonian needs to remove “improper ideology”. He’s ordered her to do it. https://www.washingtonpost.com/style/power/2025/04/21/lindsey-halligan-smithsonian-executive-order/.

Of course we want our museums to reflect our history accurately. But the many controversies about historical facts and their implications have been publicly and transparently debated by historians for decades. It is quite proper to review such representations. Trump’s executive order stated that Halligan “will consult with Vice President JD Vance to ‘remove improper ideology’ from Smithsonian properties.”

The first question is: What is improper ideology, exactly?

The second: Who is Lindsey Halligan, Esq.? (Washington Post above)

The established process of review, appropriate to a free society, has been replaced by a top-down order typical of autocracies.

The point here is that the manner and process of review and reform appropriate to a free society is discarded in the top-down orders of an autocrat.

Some of Trump’s orders reveal enough to know that I oppose them. Trumps tariff proposals reveal a lack of understanding of trade, quite aside from the rules established by the World Trade Organization (WTO). Trump condemns countries with trade surpluses with the US. These are irrelevant—as it is the US trade deficit with the rest of the world that matters—if anything. My trade deficit with Safeway is irrelevant.

Not only is Trump’s reciprocal tariff calculation laughable for its many errors, but other policies directly counter the presumed purpose of his tariffs (though who really knows what that is). His unlawful deportation attempts and cancelling student visa has produced a sharp fall in foreign visits to the US (foreign students studying here has many other benefits for the US as well). These are US exports, generating the money needed to pay for our imports. Why would he do this? This was later reversed, and the student visa reestablished. Or doesn’t he even understand what he is doing? His targeting for deportation those critical of him or Israel is a frightening attack on our First Amendment rights.

His tariff threats, on again, off again, actually seem unrelated to trade objectives. They seem to be bargaining chips for other objectives, whatever those might be. Their unpredictability itself is inflecting damage to our trade and investments. It is a very different (autocratic) approach to trade agreements than provided by the WTO.

Trump’s bargaining style re tariffs may well produce good results six months or a year down the line. But the cost has been the alienation and isolation from our traditional allies (not in our interest), and economic damage in the interim. More alarming it has strengthened China’s world leadership, driving many into closer alliance with it. The proper question is whether his approach or the traditional working though the WTO would have produced better results.

Education, whether in schools or the public square, is vital in free societies. Closing the Wilson Center was a big mistake in my view. I attended many very informative presentations there, often with Abdul Fitrat, former governor of the central bank of Afghanistan (DAB). But most of our think tanks, also presenting excellent and important seminars, are private. Trump wants to dictate what schools teach and what parents must allow or can opt out of for their children. His demands are being challenged in court. What the state can require, and parents can choose, is a challenging issue. Our traditional and more effective approach to its resolution is via public debate—not executive order.

Our cultural scene (opera, ballet, theater, etc.) is an important aspect of a flourishing society. It is quite proper to debate the extent to which our government should help finance it, but not its importance for a healthy, flourishing society. From the settlement of hunter-gatherers into tribes, such culturally binding activities have flourished. I recently watched a very painful film “A Day in the Life” of a woman (former violin player) working seven days a week to remove the rubble left in Dresden after WWII. Anyone contemplating war should examine what was left after previous wars before starting a new one. After the war, Dresden was occupied by the USSR. Interestingly the Russians set up theaters and concert halls to display the richness of Russian culture.

In the US our cultural events are largely financed by the private sector. The Kennedy Center is a federal building and the only U.S. national cultural center. The federal government covers facility operations, maintenance, security, and capital improvements, as the Center is a federal building and national memorial. About 20% of its annual operating budget is paid by the government. The government is not allowed to fund any of its performance activities and costs. Though he has never set foot in the Kennedy Center, Trump replaced its board with his friends and made himself chairman. ???

I strongly opposed Trump’s shut down of USAID, for example. https://wcoats.blog/?s=usaid. I worked for USAID in Iraq and with it in Afghanistan and other post-conflict counties. Their role was vital. The closing of USAID harms American interest.

Let me add one more example of a USAID activity. Its support of the G-17 in Serbia provides one of many examples. In the late 1990s an IMF collogue from Serbia (former Yugoslavia) pulled me aside to explain the group of center-right, free-market economists from Serbia that he was part of—they called themselves the G-17. He explained that the National Endowment for Democracy and USAID helped organize and fund seminars at which G-17 members could discuss the policies they wanted to support and how to achieve them.

“During the NATO bombing of Yugoslavia in 1999, [Yugoslavia’s President Slobodan] Milošević was charged by the International Criminal Tribunal for the former Yugoslavia (ICTY) for war crimes connected to the Bosnian War, Croatian War of Independence and Kosovo War. After resigning from the Yugoslav presidency in 2000 amidst demonstrations against the disputed presidential election, Milošević was arrested by Yugoslav federal authorities in March 2001 on suspicion of corruption, abuse of power, and embezzlement.] The initial investigation faltered, and he was extradited to the ICTY to stand trial for war crimes.” https://en.wikipedia.org/wiki/Slobodan_Milo%C5%A1evi%C4%87.

In the turmoil following Milošević’s replacement, Jimmy Barton (Chief National Bank Examiner of the United States, Retired) and I entered Belgrade on 9/10/2001 (I think—I am no longer sure of the date) to singing and dancing in the streets. As we met with the new government officials, they often gave us their G-17 card with the apology that they had not had time to get new official cards. Thank you EFD and USAID.

Trump also claimed to shut down the Millenium Challenge Corporation, the best foreign aid program we have ever had. He has withdrawn from several international organizations and agreements, and angered our friends and allies, further isolating the US. These are not in American interests.

During his 2024 presidential campaign, Trump promised no more wars. In his first 100 days in office, he threatened to invade Panama and Greenland and to annex Canada. He has started bombing Yemen without Congressional authorization. He continues to support and help finance Israel’s wars in Gaza, West Bank, Lebanon, and Syria. He has withdrawn the US from many international organizations and agreements. We are increasingly isolated with fewer and fewer friends. The US voice in the world no longer carries its earlier weight—all of which has made China stronger and more influential.

To repeat, the longer-run outcome of all this may well be good for us all. There is no knowing that at this point. But the real question is whether good results achieved in this way are better than if achieved via public debate and normal diplomacy?

The courts are increasingly challenging Trump’s disregard for law and due process. What I want to emphasis is that Trump’s autocratic actions via executive orders is very different from our usual public debate over policy seeking as much public understanding and common ground as possible. Such public debate is important for what a policy (or goal of an agency) should be. The internal efficiency with which that policy is implemented is a separate issue and something that a DOGE might well help achieve.

In a letter to U of Chicago alumni, its President Paul Alivisatos stated “As the broader higher education compact is reordered, we should not fear change for its own sake. There is reform to be had—and great opportunity to improve and to achieve more. Yet, how a period of reform unfolds can also cause enormous damage; federal and political overreach and intervention without regard to due process produces profound damage…. We have important interests at stake at this moment, as well as a set of obligations that we must and will honor.”

Trump’s executive order dictates are not an appropriate approach to reforming the scope of government.

Econ 101: How much should we tax the rich?

Should the wealthy pay more taxes than the rest of us? Of course, no one disagrees with that. But how much more? Based on 2022 tax year, the latest available, the top 10% of income earners (those with adjusted gross income above $178,661) paid 72% of the total of $2.1 trillion taxes collected. Is that too much or too little or about right. The bottom 50% of income earners (less than AGI of $50,339) paid 3.0%. What is a “fair” distribution of the tax burden and/or an economically efficient distribution? Corporate income taxes raised $0.42 trillion that year and should really be abolished in our globally trading world.

I have written earlier (many times actually) that I support abolishing all income taxes (personal and corporate) and relying fully on consumption taxation. While it can be challenging to determine where things are produced, there is no question about where we consume them. But while waiting for that miracle to happen, how much more should higher income people pay in taxes than lower income people?

Fair Tax Act of 2023
Replacing Social Security with a Universal Basic Income

My sense of fairness (and economists norm for tax neutrality) says that the tax rate should be the same for everyone. In other words, if your income is twice mine, you should pay twice the tax. If all income taxes and welfare payments were replace with a Universal Basic Income for all and flat consumption tax (VAT) the result would be mildly progressive tax rates on income.

A note on Social Security: it is not a saving plan in which what you saved is there to pay out to you when you retire. https://wcoats.blog/?s=social+security

Econ 101: Budget Cuts

What criteria should guild when to cut some program’s budget? We must first get beyond the fact the any cut will result in having less of something. If it is inefficiency or corruption that we give up—good riddance. But usually, it will be something that has some value. That does not necessarily mean that the cut should not be made.

Consider this example from my in-tray today:

“The Trump administration has made drastic cuts to the National Oceanic and Atmospheric Administration (NOAA) that threaten to impact weather forecasting and other key services provided by the agency. 

In the wake of the wave of dismissals this week, lawmakers and former officials raised concerns about potential damage to services ranging from extreme weather responses to efforts to prevent objects from colliding in space.” “The Hill: Energy – Environment – NOAA cuts”

What should be considered when making such a decision is what other services were prevented by directing these resources to NOAA activities rather than alternative uses. Even if the government just increases it overall budget, the added taxes or borrowing will have alternative uses.

You will immediately understand the issue when you consider your own household budget. Your income is limited (unless you give up some leisure to work more hours). You might gain some pleasure spending more on X, but you can only do so by giving up some Y. If you benefit more from the extra X than you lose giving up Y, then you should do it. It passes the cost/benefit test of maximizing the benefit of your given income.  

In short, the fact that cutting the budget of some agency will cut some of its services is an incomplete argument for not cutting because if fails to take account of the rest of the cost/benefit assessment of the resulting reallocation of resources.

Such budget decisions are generally debated in Congress as it approves the government’s budget. It’s an imperfect process, like most of life, but it allows all views and pros and cons to be heard and considered. A body like Musk’s DOGE might be appropriate for evaluating the efficiency with which services are performed (perhaps proposing better information processing systems) and detecting corruption, but not for evaluating the desirability of such services themselves.