Tag: Donald Trump

Our President

When our government functions properly, each President is elected because the majority of voters trust his/her leadership and largely agree with his/her policy proposals. When he/she assumes office he/she appoints department and agency heads and senior management who agree with his/her policies and are committed to implementing them. However, the vast majority of government employees (the civil service) hold their jobs because of their nonpartisan competence to execute the regular functions of government. Though elected to implement his/her promised policies, the President heads the government for the benefit of all Americans, not just those who voted for him/her.

Our current President, Donald Trump, has adopted a very different approach. At Charlie Kirk’s memorial service in Arizona on September 21, 2025, President Donald Trump gave a eulogy that stated his approach clearly. Following a speech by Charlie’s widow— Erika Kirk– who said she forgave her husband’s alleged killer and urged love for one’s enemies—Trump said, “That’s where I disagreed with Charlie. I hate my opponent, and I don’t want the best for them. I’m sorry, Erika. Maybe you and the group can convince me otherwise, but I can’t stand my opponent”. 

Since returning to office in January 2025, Trump has launched a sweeping campaign to use the federal government against those he perceives as political enemies, fulfilling his campaign promise of “retribution.” His actions have combined formal Justice Department prosecutions with broader administrative, financial, and regulatory retaliation against critics and opponents.​

Justice Department Prosecutions

Trump’s Department of Justice (DOJ), led by Attorney General Pam Bondi, has indicted several high-profile critics including former FBI Director James Comey, New York Attorney General Letitia James, and former National Security Adviser John Bolton. Many of these cases were initiated shortly after Trump publicly urged prosecutions on Truth Social or in speeches.

Expansion of Presidential Control

Under a broad interpretation of the “unitary executive” theory, Trump has expanded direct presidential control over previously independent agencies. He dismissed thousands of career employees in agencies such as the IRS and DOJ, replacing them with loyalists, and ordered investigations into opponents across multiple sectors, including education, media, and civil society. His administration’s “Weaponization Working Group” reportedly monitors and investigates state and federal officials who previously investigated or criticized him.​ Most concerning he has fired all Inspector Generals who monitor the executive’s compliance with the law.

Use of Financial and Regulatory Power

Trump has also leveraged federal contracting and tax policy to punish critics. Liberal law firms, universities, and media outlets that opposed him have been subjected to audits, funding withdrawals, or bans on federal contracts. The IRS—restructured under his direction—has reportedly targeted nonprofit organizations and universities seen as left-leaning, threatening to revoke tax-exempt status for political reasons.​

Broader Campaign Against Civil Society

The administration’s actions have extended to immigration and education systems. Activists, international students, and visa-holders accused of criticizing Trump’s policies have faced deportation or visa revocations, according to multiple reports. Tourism and foreign students are important exports. Their reduction is adding to our trade deficit. Federal oversight of university curricula and media licensing has been tightened.​

Political and Legal Reactions

Democratic lawmakers like Senator Chris Murphy have called these measures an “authoritarian use of presidential power,” warning that Trump’s systematic punishment of dissenters marks “one of the most dangerous moments America has ever faced”. Foreign governments and legal scholars have echoed fears of democratic backsliding as independent institutions are subordinated to presidential control.​

In sum, Trump’s second administration has explicitly weaponized federal agencies to investigate, prosecute, and financially damage those viewed as enemies, blending legal action with bureaucratic pressure in what observers describe as an unprecedented campaign of political retribution.  Trump’s spread of hate is intensified by his frequently claimed authority “to do whatever I want as president” based, he claims, on Article II of the US constitution.

Trump’s bullying has not stopped at our borders. He has attacked our friends with tariffs and sanctions losing allies right and left. The American beacon on the hill has sunk to the bully in your face. America’s place in the world is sinking fast. Will the Republicans on the Hill wake up and stop him. The Supreme Court has been a mixed bag.

USAID

“When Marco Rubio testified during his confirmation to become Secretary of State, he said that one of the things that frustrated him the most about the U.S. Agency for International Development was that it didn’t ‘brag’ enough to show other countries ‘what the United States is doing to help their societies.’

“The comment followed years of praise from Rubio for the billions of dollars in lifesaving aid that USAID distributed overseas to boost America’s image and counter the influence of rivals such as China.”  “Washington Post: Marco Rubio on USAID”

From my own experience, I agree with Rubio. After retiring from the International Monetary Fund in 2003, I had a contract from USAID from May 2004  – Sept 2005 to help the Central Bank of Iraq establish financial markets important for monetary policy as well as its capacity to formulate and implement monetary policy. Under this contract I reported to and was supervised by the US Treasury. I have also worked closely with USAID banking supervision contractors (BearingPoint and Deloitte) in Afghanistan, Bosnia, Kosovo, and South Sudan, all post conflict countries. They did an outstanding job, and I am sure that I was well worth the money I earned as well.

Quite aside from the insanity of suspending payments and projects in midair, wasting millions of dollars (and lives) in the process, the proper question of our government is whether these projects (or which of these projects) serve American interests and do so more effectively than would alternative uses of the same money. “As Secretary of State Marco Rubio has said, ‘Every dollar we spend, every program we fund, and every policy we pursue must be justified with the answer to three simple questions: Does it make America safer? Does it make America stronger? Does it make America more prosperous?’” “State Department: Implementing the president’s executive order on reevaluating and realigning United States foreign aid”

A proper answer to those three objectives should take a long run perspective. America is safer and more prosperous when the rest of the world (our trading partners) is also more prosperous. We are stronger when we have earned the rest of the world’s respect and cooperation. USAID, by providing humanitarian and development assistance to other countries, gains their respect and gratitude, which promotes their cooperation. When President John F Kennedy established the USAID in 1961 he made this case calling it American soft power. Following Congress’s adoption of the Foreign Assistance Act in September1961, Kennedy consolidated several foreign aid agencies into the USAID in order to improve coordination and efficiency.  It is fair to ask whether this is the most efficient way of packaging these activities and coordinating them with other departments. https://www.youtube.com/watch?v=QLzwsc3XGNA

USAID has missions in over 100 countries. Congress authorizes USAID’s programs in the Foreign Assistance Act, which Congress supplements through directions in annual funding appropriation acts and other legislation. As an official component of U.S. foreign policy, USAID operates subject to the guidance of the president, Secretary of State, and the National Security Council.

Of USAID’s total budget of almost $8 billion in 2001 and $34 billion in fiscal 2024 (less than 1% of total federal budget), one third goes to public health and the rest to disaster relief, and economic and government capacity building. Its programs to treat HIV and malaria have saved millions of lives, largely in Africa, over the last two decades. It played a major role in implementing George W Bush’s “President’s Emergency Plan for AIDS Relief (PEPFAR) which saved over 25M lives globally. “State Department: About US PETFAR” It played an important role in ending smallpox and increasing global literacy.

When I asked several USAID staff what they considered the agency’s greatest successes they sighted South Korea which is now a major US trading partner, and Columbia which has risen from a failed state to a secure middle-income country and a major US trading partner. But we can no longer access the details of these programs as USAID’s website was taken down February 1.   

Those lives saved, plus the technical assistance in governance, infrastructure, and building stronger economies has raised incomes in these countries and their sales to and purchases from the US and other countries abroad (trade). As the U.S. benefits economically from these stronger economics, American citizens are also kept safer.  With stronger economies comes stability for citizens to live peaceful, prosperous lives, turning away from the perils of extremism and increasing security on the ground. Thus, American aid has not only gained respect, good will, and cooperation from the aid recipients but increased trade, income, and security in the US as a result. In a statement made by then U.S. Senator Marco Rubio, he highlighted that six of the United States’ ten largest trading partners had graduated from assistance provided by the U.S. Agency for International Development (USAID). In a 2015 Senate Foreign Relations Committee hearing, for instance, Rubio said USAID “not only is doing what is right, but we are also furthering our national interests.” “Washington Post: Marco Rubio USAID”

The mean average managed foreign assistance disbursed in the fiscal years 2001 to 2024 by USAID was $22.9 billion in inflation adjusted to 2023 dollars; 2023 was an exceptional year because of an extra $16 billion of funds for Ukraine. America’s military budget over this period was almost $850 billion dollars per year. Since 9/11, the United States has spent an estimated $8 trillion on wars and counterterrorism efforts globally. This figure includes direct military operations in Afghanistan, Iraq, Syria, and other countries, as well as related costs like veteran care and interest on borrowed funds to finance the wars. Over 7,000 American servicemen died in these wars and deaths many multiples of that were suffered by our allies and our enemies over that period. Total Defense Department expenditures over this period were $14 trillion compare with USAID’s expenditures of 0.6 trillion with many lives saved and almost none lost. The State Department’s annual budget ranged from $50 to $60 billion over the same period. Soft power is clearly a bargain for the American taxpayers seeking a safer, stronger, more prosperous America. Why does President Trump want to shut it down?

Not all projects have been successful in achieving their objectives. But many claims of waste and corruption are not supported by facts:

“In 2025, the Trump administration accused USAID of ‘wasting massive sums of taxpayer money’ over several decades, including during Trump’s first presidency from 2017 to 2021. The administration highlighted a list of twelve projects, totaling approximately $400 million—less than 1% of USAID’s annual budget—dating back to 2005. Among the examples cited were $1.5 million for LGBT workplace inclusion in Serbia, $2.5 million to build electric vehicle chargers in Vietnam, $6 million for tourism promotion in Egypt, and ‘hundreds of millions of dollars’ (the largest item) purportedly allocated to discourage Afghanistan farmers from growing poppies for opium, which allegedly ended up supporting poppy cultivation and benefiting the Taliban. Fact checkers found that these claims were largely false, ‘highly misleading,’ or wrong.” “Wikipedia: United States Agency for International Development” 

For another example, claims that USAID funded major media organizations like Politico or BBC News were false. Payments were for subscriptions or grants to independent media projects, not direct funding of news operations. 

But neither USAID nor any other government agency is perfect. Some functions should be eliminated and others automated or streamlined and oversight strengthened. But in order to properly review its programs and operations most operations should continue until a broad consensus is achieved on what reforms are desirable how they can must efficiently be executed. For functions that survive: “’The end goal is replacing much of the human workforce with machines,’ said a U.S. official closely watching DOGE activity. ‘Everything that can be machine-automated will be. And the technocrats will replace the bureaucrats.’”  “Washington Post: DOGE Musk goals” These are worthy goals.

This “convinced Democratic lawmakers and financial columnists, who have long promoted the analogy between citizens and consumers, that DOGE could be a good idea. ‘Streamlining government processes and reducing ineffective government spending should not be a partisan issue,’ announced Congressman Jared Moskovitz (D-FL) when he joined the DOGE caucus in December. ‘If Doge can actually unleash digital reform in the US government, and in a non-corrupt manner, that would be an unambiguously good thing,’ Gillian Tett wrote last month in the Financial Times.”   “Speed-up-the-breakdown”

But suddenly suspending programs and payment while undertaking a review is the wrong approach. To take but one example, Trump’s foreign aid freeze is having unintended effects in Latin America, including halting programs aimed at stopping the flow of fentanyl. Trump has vowed to impose tariffs unless Mexico stops the trafficking of fentanyl, a major killer of young adults in the US, but the aid freeze has halted funding that Mexican authorities rely on to destroy clandestine labs, Reuters reported. Countries across Latin America are scrambling to respond to the cuts, which have dealt a blow to humanitarian programs designed to slow migration to the US — which Trump has also promised to crack down on — as well as conservation efforts in Brazil and coca eradication in Peru.

USAID’s budget and the projects it finances generally arise from the recommendations of USAID Missions in the countries it operates in accordance with the development objectives captured by the respective Country Development Cooperation Strategy (CDCS) created in concert with the host government and civil society. Almost two-thirds of its employees are locally employed staff, many from the upper echelons of the political and social classes of that country, which means stronger ties and partnerships for USAID and the host country government political figures. Some of these local staff go on to join the host country government as Members of Parliament, establishing connections between the USG and the host country government that are unmatched in terms of influence. USAID operates with an understanding of the local institutions and culture that is deep and strongly influences the projects it recommends. These recommendations are reviewed and vetted by multiple entities, including USAID regional bureaus, the State Department Office of Foreign Assistance, the Office of Management and Budget, and by the House and Senate Foreign Affairs and Operations Committees.  These oversight tools include USAID answering inquiries sent directly to regional USAID Bureaus by individual members of Congress  and through the Congressional Notification process, where every USAID project and dollar is reviewed through Hill briefings and questioning of USAID officials by Congress for its approval, which has full oversight of their execution, and gives Congress the ability to place “holds” on funding preventing obligations of funds to take place before answering their inquiries.

As with other government agencies USAID’s operations are reviewed by an independent Inspector General. USAID Inspector General Paul Martin was officially fired on February 11, one day after his office issued a critical report warning that nearly $500 million in food was about to go bad due to President Donald Trump’s freeze on the agency. Rather than the announcement coming from Secretary of State Marco Rubio, the current acting director of the USAID, it was announced by the White House Office of Presidential Personnel. Martin’s office published a six-page report the day before that argued that the recent pause on foreign assistance programs and the slashing of USAID staff has prompted ‘risks and challenges’ to the safeguarding and distribution of the $8.2 billion in humanitarian assistance. Among other things confidence in America health aid in many cases was shattered by its sudden suspension thus undermining its benefit to the US.

“One U.S. official credited Rubio with pushing for the 10,000-person agency to keep on the job roughly 600 staffers as essential workers instead of the 290 suggested by some Trump officials.” .”  “Washington Post: Marco Rubio on USAID”  Whether that is the right number or not (i.e. the staff needed to perform the functions that best serve American interests) the sledgehammer being swung by DOGE is not the right, and certainly not the cheapest, approach to determining it.

Conclusion

The government does more than is best for the country and many programs should be ended or reformed. Freezing them in order to undertake a review is the wrong approach. Lasting positive reforms must be a careful consultative process. The debate over a big bang vs a more gradual approach following the collapse of the Soviet Union is illuminating. Anyone who thinks they can work with a “blank slate” is a fool. Such an approach has never been successful.

The USAID has generally been very successful and should not be “shut down.” To date the DOGE approach has done harm to American standing, safety and prosperity and reduced taxpayer safeguards of who their money is spent rather than strengthened them. The USAID website has been removed thus eliminating the transparency of its operation to public scrutiny. The USAID’s Inspector General has been fired thus eliminating independent oversight, though the Supreme Court may overturn this executive action. The overall approach of DOGE to reform with worries about conflicts of interest is doing more harm than good.

Trump

President Reagan pointed to our beacon on the hill as the foundation of our relationship and leadership with the rest of the world. Soon to be President Trump’s approach is to threaten and bully the rest of the world.

“US President-elect Donald Trump’s trade policy challenges the post-war global trading system. By rejecting the World Trade Organization’s principles of non-discrimination and reciprocity, Trump proposes a power-based approach that would fundamentally alter international economic relations, risking the predictability and fairness that have underpinned global trade for seven decades.”  “How Trump threatens the world trading system”

But he hasn’t stopped there.  Though promising to end our “forever wars” and restraint in our international relations, Trump is coming on as the most aggressive President in memory:

“Many people have been understandably astonished by Donald Trump’s recently proclaimed desires to “take back” the Panama Canal “in full, quickly and without question” and to take over the self-governing Danish territory of Greenland.

“While Trump has written that “For purposes of National Security and Freedom around the world, the United States feels that the ownership and control of Greenland is an absolute necessity,” he would at least appear to be willing to pay Denmark for Greenland, as the U.S. paid Denmark for the Danish West Indies, renamed the U.S. Virgin Islands, in 1917.” “A thought on the Panama Canal and Greenland”

A bully, who forces rules on others that he disregards himself, will not serve America’s nor the worlds interests. We all want America to be safe, prosperous, and free. Thus, we must hope for and where possible promote a successful term for this and any other President. An important role can be, and hopefully will be played by the Republicans in Congress, starting with careful vetting of Trumps cabinet nominations. “Trump-bully-world-America-foreign-policy”

More on Trump “acquittal”

Following the Senate’s failure to convict Donald Trump of inciting the January 6 attack on the U.S. Capital as part of his “Stop the Steal” campaign to overturn Biden’s election, Senator Mitch McConnell proclaimed that “There’s no question, none, that President Trump is practically and morally responsible for provoking the events of that day….” Nonetheless, he voted against conviction on the grounds that according to some legal scholars the impeachment provisions of the U.S. Constitution applied only to a President still in office.  Since Trump was no longer the President, impeachment did not apply.  However, if that were so he should have voted to convict Trump and left it to the Supreme Court to sort out this issue if Trump challenged the conviction on these constitutional grounds.

In retrospect (for those of us who were eager to get all of this behind us and move on), it would have been wiser and more convincing to the doubters to have delayed the Senate trial by several months of evidence gathering and to provide for each side to bring and cross exam witnesses. The 9/11 type commission suggested by Rep. Pelosi might correct that mistake. But as Sen. McConnell pointed out in his post Senate vote speech that Trump will now be tried, and no doubt convicted, of many crimes in the courts. I am confident that justice will ultimately prevail.

“Out of office and without the protections that the presidency afforded him, Trump is now facing multiple criminal investigations, civil state inquiries and defamation lawsuits by two women accusing him of sexual assault.”  “Trump legal problems post impeachment”   

Georgia has launched investigations into calls Trump made to election officials in an attempt to overturn that state’s election results. We all heard Trump’s threats to Georgia Secretary of State Brad Raffensperger if he could not find 11,780 votes for Trump in order to flip the election outcome.  I found the call truly shocking, even from Trump.

“In New York… the Manhattan District Attorney’s office is looking into whether the Trump Organization violated state laws, such as insurance fraud, tax fraud or other schemes to defraud….  Prosecutors are awaiting a decision from the US Supreme Court on whether it will continue to delay the enforcement of a subpoena for eight years of Trump’s personal and business tax returns and related records from his accounting firm.” Op. cit.

A potentially large number of people could charge Trump with various damages in connection with the January 6 attack of the Capitol.  For example, Mississippi Democratic congressman Bennie Thompson has accused Trump and others “of conspiring to disenfranchise millions of black voters by preventing Congress from certifying election results on January 6th.  A lawsuit, brought by the NAACP on behalf of Mr. Thompson, argues that they violated the Ku Klux Klan Act of 1871.” “NAACP Rep Bennie Thompson sue Trump Giuliani over capitol riot”

As more and more of his supporters encounter the fact that Trump was unable to produce any credible evidence of significant voter fraud, they will hopefully increasingly give up believing it.  The multi billion-dollar defamation suits by Smartmatic and Dominion Voting Systems against Fox News, former Trump lawyers Rudy Giuliani, and Sidney Powell, and others who claimed that their voting systems switched votes from Trump to Biden should also help change some minds. Most of those making such claims publicly retracted them and apologized for them “Fox Business host Lou Dobbs and Fox News hosts Maria Bartiromo and Jeanine Pirro aired [multiple segments debunking false election claims made on their shows for weeks] that Smartmatic was involved in schemes to switch votes from President Donald Trump to President-elect Joe Biden….” “Fox news suddenly worried about a defamation suit-forced to debunk its own false election claims”  and Fox News fired them. Most people who believe fake claims eventually give them up when confronted with credible counter evidence (I hope).

But what if they don’t? “Some of the senators may have little sympathy for the former president, yet made the partisan choice to appease an increasingly extremist Republican base. A recent poll conducted by the conservative American Enterprise Institute found that nearly 4 out of 10 Republicans believe that political violence is justifiable and could be necessary in a troubled domestic future. Another poll found that three-quarters of Republican voters want Trump to play a prominent role in the party’s future.”  “Trump acquittal questions multiparty system” Most of the rest, presumably, will not remain in a party that includes Trump.

Is the Republican Party thus doomed to minority status for many years to come?  My hope is that multiple court convictions of at least a few of Trump’s many (presumed) crimes will significantly shrink his support and eliminate his role in the party. His refusal to help Rep. Kevin McCarty on January 6 (much less Vice President Pence) was one of the more damning pieces of evidence of Trump’s complicity with the Capital attackers. Yet, “Wary of inflaming tensions within his own party, House Republican Leader Kevin McCarthy (Calif.) is staying silent about his frantic Jan. 6 call to then-President Trump as rioters raided the Capitol.” “Riot probe to likely focus on McCarthy-Trump call” In my opinion, Republican leadership should push Trump out of the party as quickly as possible. An internet poll on February 17 found 75% of the responding Republicans thought that Republicans who voted to convict Donald Trump should be censured. This is not promising. The country needs two strong political parties.

The Party should start by squeezing out its radical loony extremists like Rep Marjorie Taylor Greene.  https://wcoats.blog/2021/02/04/cancer-in-the-republican-party/  The reactions by Republican Party leaders in states whose Republican senators voted against Trump raise concerns that hard core Trump supporters would rather destroy the Republican Party than abandon their Stable Genius. “The Republican Representative Adam Kinzinger (R-IL) was sent a scathing letter from eleven members of his own family just two days after he called for former President Donald Trump to be removed from office.” “GOP rep Kinzinger is blasted by his own family after calling for trumps removal” The Central Committee of the North Carolina Republican Party unanimously censured Sen. Richard Burr for voting to convict Trump. They said that the party “agrees with the strong majority of Republicans in both the U.S. House of Representatives and Senate that the Democrat-led attempt to impeach a former President lies outside the United States Constitution.” Maybe, maybe not, but there was a proper way to find out while still confirming Trump’s guilt.

I do not wish to see the Republican Party destroyed. In my opinion, its survival and viability will depend on how quickly Trump fades from the picture and how successfully the Party marginalizes its lunatic fringe.  Reducing gerrymandering of congressional districts on the basis of the latest ten-year census would also help reduce the election of the most radical candidate from each party in primary elections.

A Letter to the Republican Party

As a no doubt futile outlet for my frustration with the Republican Party, I have been enclosing the following letter in the return envelops they keep sending me with the request for financial support.

Dear Members of the Republican National Committee,

The Trump administration has had some positive achievements domestically (tax reform, regulatory reforms and court appointments). However, its continued increase in government spending (annual deficits of one trillion or more when the economy is at a cyclical peak) is wrong and unthinkable for Republicans. President Trump’s weakening of America’s support for and role in international organizations, abandonment of the Iran Deal and anti-nuclear proliferation treatises, and war on trade, are bad for America and the world we live in.  President Trump’s divisive language is unbecoming of the leader of a great nation, a nation of immigrants. The Republican Party has failed to stand up for these principles and to criticize the President for these offenses.

Even more concerning is your acquiescence to President Trump’s lying, immorality, and corruption. His clearly documented attempted bribery of the President of Ukraine for personal gain is damaging American security interests. His obstruction of Congress’s execution of its constitutional duties is very concerning. These and other acts cross the sadly low bar of acceptable behavior.

For the sake of our deeply divided country, the Senate owes us all an impeachment trial that any honest person will consider fair. President Trump must have every opportunity to explain and defend his behavior and those challenging it must have every opportunity to make their case. President Trump obstructed the House’s efforts to obtain firsthand evidence of the President’s attempt to use his executive authority for personal gain. It is essential that the Senate permit the testimony of those blocked in the House by the President (Bolton, Mulvaney, Mike Duffey).

With your silence you have abandoned me and my continued commitment to limited and sound government.  I cannot continue to support the party until you stand up and again defend our principles.

Sincerely,

Warren Coats

Trump’s Real Job

President Trump should give up his childish feud with the NFL and attend to his real job. His frequent attacks on the press, the intelligence community, so called rapists from south of the border, among many other things, in addition to being incredibly stupid, seem a tactic to deliberately divert public attention from failures of his administration. And the NFL players should think again about how most effectively to make their political points.

During the campaign the President promised a more restrained use of our military around the world, which is a view I share. However, he has failed to appoint the State Department officials needed to develop and oversee the diplomacy that could replace excessive reliance on our solders. Almost a quarter of our ambassadorships remain vacant, including to Germany and France. The ambassadors to the UK and Italy were only appointed last month. When I attended the American Embassy’s Independence Day celebration at the Ambassador’s residence in Rome in July, there was still no Ambassador.

According to Wikipedia: “The Washington Post has identified 601 key positions requiring U.S. Senate confirmation. As of September 22, 2017, 122 of Trump’s nominees have been confirmed for those key positions, 157 are awaiting confirmation, and 18 have been announced but not yet formally nominated.” In other words Trump has not even appointed half of his administration.

Our indefensible assistance to Saudi Arabia’s indefensible war in Yemen needs the POTUS’s urgent attention. As Russia and our allies in Syria finish off ISIS, what is our strategy for the future of the region and Iran’s role in it? What about Afghanistan and Iraq, where I worked extensively for the last 15 years? Our objectives re our relationship with China (not to mention Russia) need to be clarified and our strategy for achieving them better articulated.

And then there is the mess that is the DPRK (North Korea). School boy taunts that threats from Kim Jung Un “will be met with fire and fury like the world has never seen,” is not a credible or wise strategy. Even without a full deck at the State Department, Trump’s senior advisors repeatedly warned him not to attack the North Korean leader personally:

“Trump’s derisive description of Kim Jong Un as ‘Little Rocket Man’ on ‘a suicide mission’ and his threat to ‘totally destroy’ North Korea were not in a speech draft that several senior officials reviewed and vetted Monday, the day before Trump gave his first address to the U.N. General Assembly…. Some of Trump’s top aides, including national security advisor H.R. McMaster, had argued for months against making the attacks on North Korea’s leader personal, warning it could backfire.” http://www.latimes.com/politics/la-fg-trump-northkorea-20170922-story.html

And then there is Trump’s domestic agenda (Obama care, Tax Reform, etc.). How is that doing? He should cancel his twitter account, finish appointing his government and listen to what his cabinet and advisors have to say and get on with his job as the President of the United States. And by the way, the campaign is over. It is time to stop further dividing the country and to reunite us to the extent possible.

 

President Trump and manufacturing jobs

President Trump intends to bring back manufacturing jobs. How might he do that and what would it mean for our economy and our workers?

Keeping in mind that our manufacturing output has steadily increased over the years and is now at an all time high, though the number of manufacturing jobs has steadily declined. Bringing back manufacturing jobs means rolling back and undoing the technical advances that made manufacturing workings more productive. But if we increase the number of workers in manufacturing by making each worker less productive (shelving some of the productivity enhancing technical advances), where will these workers come from? Presumably not from Mexico. They will have to give up what they were producing before in order to take the new manufacturing jobs.

Looking more carefully at such a policy reveals that it would make us poorer. Without Trump’s arm twisting (carrots and sticks—tax breaks, i.e., bribes, and/or tax or other penalties), the workers in question would be employed doing things that were more profitable (i.e. more productive and contributed more to our income) than in manufacturing. Trump would have those workers move from where they are more productive to where they would be less productive. I assume that such a policy reflects ignorance rather than malice, but what ever his motivation, the result of Trump’s protectionist threats would be to lower our standard of living.

If President Trump intends to return power from the government to the people, as he claimed in his inauguration speech, he will have to stop threatening companies to produce things in the U.S. when they would otherwise find it more profitable (cheaper) to produce them abroad and import them. Anything and everything that adds to our economy’s productivity (specializing in what we are best at and exporting it to pay for imports that other countries are better at making) increases our incomes. Trump should stop interfering with our private economic decisions and get on with the other aspects of his promises (tax and regulatory reform) that will increase our well-being.

Trump the Terrible

To say that Trump’s future presidency promises to be a mixed bag, while true, seems increasingly too kind. On the positive side there seems to be a very good chance of a truly monumental tax reform. House Ways and Means Committee Chairman Kevin Brady recently released the outline of a major tax reform plan as part of Speaker Paul Ryan’s “A Better Way” agenda that would, if enacted, introduce a dramatic, growth enhancing reform of U.S. personal and business income taxation. While there are a few differences with the President Elect’s tax reform proposals, it should not be that difficult to resolve them. Prospects for adoption are the best they have been for decades.

On the growing negative side Trump is adding to the nasty character traits he seemed unable to control during his campaign—a level of blatant corruption that would even embarrass the Clintons. After having his daughter, who is also his business partner, at his side during his private meeting with the Japanese Prime Minister Shinzo Abe, a few days later he put Ivanka on the phone with Argentina’s President (Trump is seeking approval to build a real-estate project in Buenos Aires).

For me these examples of Trumps many conflicts of interests pale in comparison to the deal he claims credit for to keep 1000 Carrier jobs in Indiana where Mike Pence is still the governor. The Chicago Tribune reported today that “Carrier would receive a $7 million package of incentives to keep its factory here from moving to Mexico, the company said Thursday, under a deal negotiated with the state after an unusual intervention by President-elect Donald Trump that could reshape the relationship between the White House and private enterprise.” http://www.chicagotribune.com/business/ct-trump-carrier-jobs-subsidies-20161201-story.html

This goes beyond the corruption of personal enrichment and vote buying from the public purse to measures that undermine the very basis of our national wealth. And Trump proudly stated to the press that he would give any other company that wanted to move production abroad a VERY hard time. He is gloating over his “skillful” use of his great power as president.

The standard of living of the average middle class family in the U.S. could not even have been imagined half a century ago. Among the many things that make our wealth possible is the ability of companies and each of us to allocate our resources where we think they will be most productively used. Trump is now inserting the power of the Presidency—of the government—to over ride those economic decisions in order to save some jobs at some (favored) companies at the expense of other jobs and overall economic efficiency. This is blatant corruption of a high order and if allowed to persist will erode our economic productivity and standard of living over time. Read any of my blogs on trade and free enterprise (or what most of us call the liberal economic order).

Not only is Trump’s corruption shocking, but also his failure to behave presidentially is beyond embarrassing. It is dangerous. Someone should take Trump’s phone away until he figures out that his campaign style of ad libbing is simply wrong for the POTUS. When he said he would jail and take away the citizenship of flag burners, was he ignorant of the law (confirmed by a Supreme Court ruling) or contemptuous of it??? In his recent phone conversation with Pakistani Prime Minister Muhammad Nawaz Sharif, was he looking ahead to what he might say to the Indian PM when he committed himself (and implicitly the United States) to the following: “I am ready and willing to play any role that you want me to play to address and find solutions to the outstanding problems.” You can read the entire terrific, wonderful, exceptional conversation here: http://www.pid.gov.pk/?p=30445 What in the hell is he thinking? Unfortunately the list of problems is growing. And he’s not even the President yet.

And So here we are…

And now the Republican’s own it. What ever happens, whether their doing or not, the Republicans own what ever happens on their watch. It is filled with opportunity to turn our country away from an ever growing government rule over our personal lives back to greater personal freedom with a limited government safety net rather than an ever more extensive rulebook of what we can and cannot do. Donald Trump has demonstrated over his life that he ruthlessly pursues what benefits him with little to no regard for those he tramples on and little hesitation to use the powers of government for his personal gain. This history is set out in the attached article that I wrote thinking we were saying good-bye to Trump.

Hopefully some of Trump’s promises (deporting 11 million illegal aliens, blocking entry to Muslim’s, high tariffs on China—all of which would be devastating to our economy as well as illegal) will simply be forgotten. Some other promises (respectable Supreme Court appointments, reducing corporate income tax rate and other badly needed tax reforms, a more restrained foreign policy) would be very beneficial and should be adopted. Many promises were contradictory. David Ignatius reported in today’s Washington Post that: “A Trump foreign policy, based on his statements, will bring an intense “realist” focus on U.S. national interests and a rejection of costly U.S. engagements abroad…. Trump also promised repeatedly that he would step up the U.S. military campaign against the Islamic State and replace U.S. generals who were insufficiently combative. But he has been vague about what he plans to do in Iraq and Syria.” Let’s hope that we get the first Trump rather than the second one.

My hope (I am always inclined by nature to be hopeful) is that Congress—a Republican controlled Congress—will reassert its proper constitutional role and roll back the extensions of executive power we have suffered under George W and Obama. Trump’s “strong man, leave it to me” impulses risk abuses of executive authority every bit as much as Obama has or Hillary might have. My other hope is that Trump’s transition team, with sound thinking people like Ed Feulner, will staff Trump’s administrative departments with good people with good ideas. Trump is smart but ignorant of most conservative thinking about economic policy issues. Hopefully he rejects his earlier claim that he is his own advisor and listens to his government as well as David Ignatius’s admonition that: “Undoing globalization isn’t possible. But undermining America’s leadership in that system would be all too easy.”

Hillary Clinton’s beautiful concession speech could have been given by Ronald Reagan. http://www.usatoday.com/story/news/politics/elections/2016/2016/11/09/watch-live-hillary-clinton-addresses-supporters-after-defeat/93532872/. She said nothing that President Trump should disagree with and I wish him and his future administration the very best.

The Ugly Face of Capitalism

Capitalism is an economic system in which people, individually or in groups, can keep the fruits of their labor and in so doing can invest and deploy what they save from it to increase their output and thus income. In short, capitalists create value– things other people want– in order to improve their own incomes. The absolutely amazing accomplishment of capitalism can be glimpsed from the following, which I wrote two years ago: “World per capita income didn’t change much from the time of Christ to the founding of the United States ($444 to $650 in 1990 dollars), a period of 1,790 years. But in the following 320 years it jumped to $8,080. And about half of that jump came over the last 50 years.” https://wcoats.wordpress.com/2014/12/18/free-markets-uber-alles/

Capitalism involves relationships between people that we might call win-win. You make money when you produce something others want and will pay you for. Donald Trump presents another face of capitalism. Rather than a value creator, Trump prides himself on being a great bargainer. He was often playing a zero sum game. Rather than increasing the pie, he focused on increasing his share of the pie, thus reducing someone else’s share. As Andrew Sullivan put it: “[Trump] has no concept of a non-zero-sum engagement, in which a deal can be beneficial for both sides. A win-win scenario is intolerable to him, because mastery of others is the only moment when he is psychically at peace. (This is one reason why he cannot understand the entire idea of free trade or, indeed, NATO, or the separation of powers.)” http://nymag.com/daily/intelligencer/2016/11/andrew-sullivan-trump-america-and-the-abyss.html

But Trump has not just bargained for better deals for himself, he has also often stolen them. It is not unusual, nor even necessarily a black mark, to fail in business and then to pick up and try again. Trump has many failures under his belt: Trump Shuttle, Trump: The Game, Trump Magazine, GoTrump.com, Trump Mortgages, Trump Steaks, Trump Super Premium Vodka, Trump University (over which he is being sued for fraud) and several Trump Casinos. Four Trump owned casinos in Atlantic City filed for bankruptcy: Trump Taj Mahal, 1991; Trump Castle Associates, 1992; Trump Hotel & Casino Resorts, 2004; and Trump Entertainment Resorts, 2009. But Trump was clever enough to generally lose other people’s investments rather than his own. He even claimed to make charitable contributions that were actually other people’s money and spent other people’s charitable contributions on himself. He probably has not paid federal income taxes for many years, but we cannot know for sure because he has not released his federal income tax returns.

More disturbing to the property rights foundation of capitalism is Trump’s use of the government’s right to seize property for “public” use under its eminent domain powers. When he was unable to convince private owners of property to sell it to him, he did not hesitate to turn to government to force them to: See the excellent article by Cato’s David Boaz: https://www.theguardian.com/commentisfree/2015/aug/19/donald-trumps-eminent-domain-nearly-cost-widow-house as well as the article by John R. Lott, Jr. in the National Review: http://www.nationalreview.com/article/431005/trump-eminent-domain.

According to USA Today: “Donald Trump often portrays himself as a savior of the working class who will ‘protect your job.’ But a USA TODAY NETWORK analysis found he has been involved in more than 3,500 lawsuits over the past three decades — and a large number of those involve ordinary Americans.

“At least 60 lawsuits, along with hundreds of liens, judgments, and other government filings reviewed by the USA TODAY NETWORK, document people who have accused Trump and his businesses of failing to pay them for their work. Among them: a dishwasher in Florida. A glass company in New Jersey.  A carpet company. A plumber. Painters. Forty-eight waiters. Dozens of bartenders and other hourly workers at his resorts and clubs, coast to coast. Real estate brokers who sold his properties. And, ironically, several law firms that once represented him in these suits and others.

“Trump’s companies have also been cited for 24 violations of the Fair Labor Standards Act since 2005 for failing to pay overtime or minimum wage, according to U.S. Department of Labor data. That includes 21 citations against the defunct Trump Plaza in Atlantic City and three against the also out-of-business Trump Mortgage LLC in New York.  Both cases were resolved by the companies agreeing to pay back wages.

“In addition to the lawsuits, the review found more than 200 mechanic’s liens — filed by contractors and employees against Trump, his companies or his properties claiming they were owed money for their work — since the 1980s.  The liens range from a $75,000 claim by a Plainview, N.Y., air conditioning and heating company to a $1 million claim from the president of a New York City real estate banking firm. On just one project, Trump’s Taj Mahal casino in Atlantic City, records released by the New Jersey Casino Control Commission in 1990 show that at least 253 subcontractors weren’t paid in full or on time, including workers who installed walls, chandeliers and plumbing….

Trump’s comment on his unpaid bills was that: “If a company or worker he hires isn’t paid fully it’s because The Trump Organization was unhappy with the work.”[1]

That Donald Trump received the Republic nomination for President and a large number of American votes despite his immoral behavior, rude comments about women, Hispanic, Muslims, threats of torture, and bombing the families of terrorists, etc., has damaged the United State’s image abroad. But he has damaged the image of capitalism as well. Trump’s business activities have been bullyish and exploitive and have not added value to the world as the counterpart to his wealth in the normal and laudable tradition of capitalism. The damage from Trump’s campaign is wide indeed.

[1] Steve Reilly, USA Today, 06/09/2016 http://www.usatoday.com/story/news/politics/elections/2016/06/09/donald-trump-unpaid-bills-republican-president-laswuits/85297274/