The Donald—–The Good And Bad Of It
by David Stockman • February 27,
2016
davidstockmanscontracorner.com
America will need the
Almighty’s unstinting favor if Donald Trump becomes our 45th
President. Still, blessed be The Donald for running a demolition derby in
the Republican primaries.
There is no hope for the future of capitalist prosperity and a
free society at home and world peace abroad unless the Republican Party is
destroyed. And, by golly, Trump may well accomplish the deed.
We need to be clear. There is no longer a Republican
Party rooted in the main street highways and byways of America. What’s
left of it is not really even the xenophobic, nativist,
crypto-racist flotsam and jetsam of the populist right that
Trump is successfully calling to political arms.
The fact is, the GOP has mutated into the Warfare State
party. Nestled comfortably in the Imperial City, it operates a
plethora of special interest rackets which underwrite its
incumbents’ bi-annual electoral campaigns out in the provinces.
In the interim, GOP politicians idle their time in the
capital and on foreign junkets conjuring and embellishing scary
stories about terrorist threats and hostile regimes. So doing, they
perceive enemies of the American Imperium to be stalking the planet
everywhere and even creeping onto these exceptional shores.
In a word, as the party of the Warfare State, the GOP’s main business
has become promoting the agenda,
campaigns, machinations and glory of the Imperial City. Whenever its
pro forma rhetoric about small government and fiscal prudence becomes
inconvenient to the needs of the military/industrial/surveillance complex or
the fund-raising requirements of its special interest rackets, the GOP’s
putative conservative economics platform quickly becomes “inoperative” in
the Nixonian vernacular.
There is no better prototype for the new GOP than Senators
Lindsay Graham and John McCain. Their agenda consists exclusively of
promoting and superintending Washington’s foreign projects, occupations,
alliances and maneuvers. Cycling through Tel Aviv on a regular basis, showing
up on the battlements of Kiev and lecturing the Chinese about maritime law in
international waters, for example, they comically imitate the first
century Roman Senators they fancy themselves to actually be.
Yet after decades in Washington they and most of their Senate
colleagues have accomplished nothing that resembles the old Republican
verities. In fact, during 2000-2006 when Republicans controlled the Congress
and the White House, not a single welfare state program or agency was
eliminated or even reformed, while vast new expansions of education,
Medicare, agriculture, alternative energy subsides and much more were
piled on the pre-existing heap of state.
Accordingly, the Federal spending share of GDP grew faster
than at any time in history; and the $4 trillion worth of new national debt
incurred during the eight Bush years smashed all prior peacetime records.
Even when the likes of Graham and McCain occasionally took time
from their foreign adventures, it was not to lead a charge on shrinking the
Welfare State or balancing the budget. McCain famously embraced the Wall Street
bailouts in the fall of 2008, thereby ending once and for all GOP credibility
on the sanctity of free markets and opposition to crony capitalism.
Graham was worse. He embraced the dubious science of global
warming, the carbon tax and the vast expansion of the regulatory state that
policy implies.
In all, the GOP establishment has become an integral part of
the Washington ruling class. It has no passion——only lip service—–for the
anti-Washington predicate on which the party was founded.
Once upon a time, by contrast, the GOP actually stood for
free markets, fiscal rectitude, hard money and minimalist government. Calvin
Coolidge did a pretty good job of it. And even the unfairly besmirched Warren
G. Harding got us out of the foreign intervention business—-a path that the
great Dwight D. Eisenhower pretty consistently hewed to under the far more
challenging conditions of the cold war.
But these were sons of America’s old school
interior—–Massachusetts, Ohio and Kansas. As temporary sojourners in
Washington, they remained incredulous and chary of grand
state missions either at home or abroad.
Harding called it returning to “normalcy”. Coolidge said
Washington’s business was to get out of the way. And Ike actually
shrank the Warfare state by one-third, ended Truman’s wars and started no
new ones, resisted much of the Dulles’ brother’s interventionist
agenda, balanced the budget and froze the New Deal as hard in
place at he had the votes to achieve.
Today’s Republican crowd bears no resemblance. They live in the
capital, fully embrace its projects and pretensions and visit the
provinces as sparingly as possible. And that’s why The Donald has them so
rattled, even petrified.
To be sure, there is much that is ugly, superficial and stupid
about Donald Trump’s campaign platform, if you can call it that, or loose
cannon oratory to be more exact. More on that below, but at the heart of his
appeal are two propositions which strike terror in the hearts of the Imperial
City’s GOP operatives.
To wit, he is loudly self-funding his own campaign and
bombastically insisting that America is getting a bad deal everywhere in the
world.
The first
of these propositions explicitly tells the legions of K-Street lobbies to take
a hike, thereby posing a mortal threat to the fund raising rackets which are
the GOPs lifeblood. And while the “bad deal” abroad is superficially
about NAFTA and our $500 billion trade deficit with China, it is really an
attack on the American Imperium
The American people are sick and tired of the Lindsay
Graham/John McCain/George Bush/neocon wars of intervention and occupation; and
they resent the massive fiscal burdens of our outmoded but
still far-flung alliances, forward bases and apparatus of security
assistance and economic aid. They especially have no patience for the
continued huge cost of our commitments to cold war relics like
NATO, the stationing of troops in South Korea and the defense treaty with
the incorrigible Japanese, who still blatantly rig their trade rules
against American exports.
In short, The Donald is tapping a nationalist/isolationist
impulse that runs deep among a weary and economically precarious main
street public. He is clever enough to articulate it in the bombast of what
sounds like a crude trade protectionism. Yet if Pat Buchanan were to
re-write his speech, it would be more erudite and explicit about the folly
of the American Imperium, but the message would be the same.
That’s why the War Party is so desperate, and why its last
great hope is the bantam weight Senator from Florida. In
truth, Marco Rubio is an obnoxious kid who wants to
be President so he can play with guns, planes, ships and bombs.
He is a pure creature of the Imperial City, even if at his young age he has
idled there only since 2010.
Yet down to the last nuance of his insipid neocon worldview and
monotonous recitation of the American Exceptionalism catechism, he might as
well have been born in Washington of GS-16 parents, not Cuban
refugees, raised as a Congressional page, and apprenticed to the Speaker
of the US House rather than serving as the same in the backwaters of
Tallahassee.
What Marco Rubio is all about is Warfare State
republicanism. When he talks about restoring American Greatness it is through
the agency of Imperial Washington. He has no kinship with Harding, Coolidge or
Eisenhower. None of them were intent on searching the earth for monsters to
destroy, as does Rubio in every single speech.
And make no mistake. Every time this naïve smart aleck chastises
Obama for weak leadership and alleged failure to get the job forcefully done in
Syria, Libya, Iraq, Yemen and countless elsewheres, the ghost of John Quincy
Adams should be hollering in his grave. Stalking the globe for monsters to
destroy is exactly what this wanna be little Napoléon is all about.
Likewise, none of the Republican greats would have vowed to
tear-up the hard-won nuclear and trade deal with Iran on day one in
office, as Rubio never stops declaiming. His hard core opposition to
that breakthrough for peace and sanity, in fact, is a damning indictment.
The War Party in Washington and Tel Aviv has spent the last
30-years constructing a tissue of lies about the Iranian regime because both
need an enemy in order to mobilize their domestic constituencies. The truth is
that despite its theocratic rebuke of Imperial Washington after the bloody and
thieving reign of the Shah was peacefully ended, the Iranians have never
aspired to nuclear weapons, do not conduct a remote fraction of the terrorism
inflicted by Washington’s drones, bombs and cruise missiles, and have never
threatened the safety and security of the American people.
In denouncing the Iranian accord, Rubio is loudly embracing
Washington’s 30-year tissue of lies about Iran and the destructive
neocon foreign policy of which it is but one baleful extension.
So the
good in The Donald at this juncture is that only he can stop Senator Marco
Rubio. Only Trump’s brash bombast can finally displace the
toxic neocon ideology that has mutated the GOP into the
handmaiden of the Warfare State.
Indeed, Rubio is the very worst bag carrier for
the Washington neocon establishment yet. Even George Bush could not be
persuaded to bomb Tehran owing the thinness of the evidence and the awful
implications of launching an outright genocide against an innocent Persian nation
of 80 million.
Yet the strutting know-it-all boy Senator
from Florida, who never even learned his way around the Senate
but oozes with Napoleonic pretensions and delusions of grandeur,
could readily do far worse.
That
brings us to the bad of The Donald and what I called the
Hairy Deal a few weeks back. Even as The Donald talks up a
populist-sounding storm and rebukes Imperial Washington with the insolence it
richly deserves, his predicate is fundamentally wrong. He insists
that the nation’s ills stem from incompetent politicians making bad deals.
But that’s not right. The problem is bad policies and
destructive ideas in the hands of Washington’s career politicians who
are extremely competent at orchestrating the machinery of the state against the
liberty and prosperity of its citizens.
Thus, in the hierarchy of things screaming out for radical
change, the Donald’s favorite whipping boys——-NAFTA, China’s trade practices,
illegal aliens and the danger of Muslim refugees——-don’t even rank. Nor do
safeguarding the Second Amendment or building a horizontal version of Trump
Towers on the Rio Grande.
The fact is, Trump has fashioned his platform by
opportunistically scratching the most fearful and bigoted itches roiling
the electorate. He has absolutely no semblance of a coherent program——or even
an incoherent one for that matter.
Instead, his pitch is comprised of pure bombast and bile.
It’s based on the exceedingly dangerous proposition that what Washington
needs is a smart deal maker who can make the government agencies and
bureaus run better at home and foreign leaders run for cover abroad.
You could call it the Man-on-the-White Horse syndrome, and pity
the horse.
But don’t pity the nation. Sadly, the people are getting what
they deserve. They have allowed both political parties, the
agencies of their democratic right to rule, to betray them with impunity.
And that’s just as true of the Democrat party as the GOP. There
is a dearth of new jobs in America today, for example, because the Democratic
Party protects like a junkyard dog the single biggest agency of job destruction
in the land.
To wit, the so-called foundation labor law in the form of
the social security payroll tax, minimum wage and the NLRB.
These relics of the 1930s New Deal remain the litmus tests for the Democrats’ own
brand of special interest racketeering——that is, kowtowing to the unions.
But in a global market that can mobilize labor from every rice
paddy and remote hamlet on the planet, the protectionism afforded US industrial
unions by the NLRB imperils the few manufacturing jobs that remain.
At the same time, the minimum wage stops new service sector jobs from
being born, while the myth of social insurance—including its second generation
off-spring in Obamacare——always and everywhere pushes employers to
artificially conserve labor and substitute capital and technology.
Stated differently, the stupidest thing that Washington can do
to a $40,000 per year job in an economy where labor is drastically over-priced
and uncompetitive with much of the world is to extract upwards of $17,000 worth
of payroll taxes and Obamacare employer mandates before workers get a red cent
of take home pay.
And, no, the solution is not to abolish social security and
dump grandma in the snow. Instead, if the community organizer who stumbled
into the White House on the strength of his anti-war rhetoric had not been
wedded to the Democrat’s mindless ideology of “social insurance”,
he could have abolished the $1.2 trillion per year payroll tax
entirely—–the sledge hammer that beats down upon worker living standards day in
and day out—— and replaced it with a 10% consumption tax.
Needless to say, in a nation where only 123 million of an adult
population of 252 million work full time, we could do with less consumption and
more labor hours and production—-so we should tax the former, not the
latter. Indeed, a nation which is getting older, fatter and dumber
while watching television or trolling the internet eight hours per
day, must do less shopping and keeping up with the Kardashians and
more work——or it will end up in social and fiscal bankruptcy within a decade or
so.
By that token, the giant wedge on labor imposed by social
insurance could be further alleviated by the imposition of a stringent means test. Precious
few retirees has actually earned through lifetime tax contributions
anything close to their combined $450,000 average package of social
security and medicare, anyway.
In fact, taxing the wealthy duffers who live on Florida’s
golf courses and collect $50,000 per year in medicare and social security
benefits should have been a no brainer for the big thinker now incumbent in the
White House. But when it comes to feeding the organized labor rackets, thinking
has nothing to do with it.
At the end of the day, America is on a slippery slope toward
failure because the Warfare State and the Welfare State are suffocating what
was once a prosperous capitalism and a resilient free society lightly
intruded upon by the machinery of state.
But now both parties have become handmaidens of the state.
Domiciled in the Imperial City, they have long ago betrayed their founding
principles in favor of incumbency, self-importance and operating the special
interest rackets that keep them in office.
Maybe The Donald’s startling but palpable momentum toward the
White House will have one saving grace. His relentless campaign against the
“politicians” and the Washington money rackets may end up knocking the
hypocritical stuffings out of both parties.
There could be worse fates among the present alternatives.