February 20, 2020
Trump boasts about the strong economy. What makes it strong? Certainly not his “policies,” like stupid trade wars, and curbing immigration, very harmful. But if the government pumps a trillion dollars a year into it, you’ll have a good economy. That’s the big story: huge budget deficits, mostly borrowed money. Mortgaging tomorrow to live high today.
America does still have a lot of genuine economic strengths. Our free-market capitalist system is a great machine for producing wealth and human welfare. But that, Steven Pearlstein recently wrote in the Washington Post, will be undermined by the political division paralyzing government, and Trump’s war on rule of law.
Back in antediluvian 2013, I reviewed a book by Thomas Friedman and Michael Mandelbaum, That Used to Be Us. A can-do nation that could come together, tackle challenges, bite bullets, and do big things. If that seemed moribund in 2013, it’s a lot worse now.
The book talked about deteriorating infrastructure; shrinking investment in research and development; virtually ignoring climate change; a broken immigration system that shuts out legions of motivated brainy people we desperately need; an education system inadequate for the competitive high-tech globalized marketplace. Instead of all that, we spend resources on a military to re-fight WWII, farm subsidies, burgeoning pensions, overly expensive healthcare, and other “entitlements.”
And we’re not paying even for those, as already noted, going deeply in debt to finance them. Testing the limits on how much we can borrow. We’re OK as long as interest rates stay rock bottom and the market still has great confidence in America.
If it decides our game is up, we’ll be like Wile E. Coyote in the old cartoons — running off a cliff till he realizes nothing holds him up. Then he drops like a stone.
But our supervening problem, Friedman and Mandelbaum said, is our political dysfunction, blocking action on all the rest. A partisan tribal war on every issue which, in a closely divided nation, neither side can really win. It’s gotten worse since.
Back to Pearlstein: he says what “really distinguishes a successful economy from a failing one” is “the quality of institutions — the laws, rules, norms and policies that create the framework in which any economy operates.” And broken politics are degrading the quality of U.S. institutions. Pearlstein cites the same familiar challenges as Friedman and Mandelbaum, saying a “working political system would . . . embrace the obvious compromises, building on what works and fixing what doesn’t.”
But instead, Americans “deny the problem, demonize those with whom we disagree and ostracize anyone who dares to compromise.”
And today’s great tragedy is Trump’s destruction of even those institutions that were still continuing to function. For all our political conflict, we still operated under strong rule of law, with a basic level of civic decency, and acted as the responsible global leader.
Rule of law is a truly great human achievement and a bulwark for a society working well. A key underpinning for a dynamic economy. People must be able to make investments knowing the law will be there for them. Recall Putin’s regime jailing a big oil entrepreneur to steal his company. Pearlstein writes, “perhaps the greatest threat to the U.S. economy is the deterioration in the rule of law that has become a hallmark of the Trump presidency.”
We see it lately in the cases of Roger Stone and Michael Flynn, convicted of serious crimes; then political interference trying to get them off the hook. While Trump critics are targeted. The Justice Department’s credibility is now in shreds.
Trump flouts such basic norms at every turn. No tax transparency. Exploiting the presidency for personal gain. Abusing tariffs to punish longtime allies who annoy him. Abusing pardons to reward supporters. Undermining institutions like the FBI with lying accusations. Firing diplomats and civil servants who thwart his illicit aims. Dismissing uncooperative judges as political hacks. Calling journalists who report the truth “enemies of the people,” any investigation of wrongdoing a “witch hunt,” and calling a liar anyone who unmasks his own lies. Breaking the law to hold up vital military aid to an ally to extort a bribe in the form of smearing a political opponent, trying to cover it up, lying about it, and trying to block Congress from investigating it.
And getting away with it all. That’s what acquittal by a feckless Senate majority, in the impeachment debacle, signifies. The death of accountability and rule-of-law. Our economy will not eternally be immune from the effects.
As Friedman and Mandelbaum wrote, America had crises before, which we overcame. Like the Civil War, and the Depression. Trump’s presidency is truly just such a crisis — a crisis of the very soul of this nation. Voting him out could be at least a start on repairing the damage. But if we can’t even see clearly enough to do that . . . .