Bumpy ride in Trump’s new America
details the fallout from some massive and volatile policy changes
IN November 2016, political neophyte Donald Trump shocked the world with his triumph over Hillary Clinton.
The world has reaped the whirlwind of this ever since.
On the positive side, President Trump has changed the language and mood of American politics. Maybe forever. His administration appears disorganised, but Trump keeps his faithful following. It may not represent most Americans, but there is an unshakeable core who refuse to abandon him.
His recalibration of US foreign policy and trade resonates. His aggressive stand against North Korea is wellreceived. His sending more troops to Iraq and Afghanistan encountered just a muted response. His visit to China in November was indicative of China’s effort to be on good terms. Though Trump did not achieve anything, the Chinese pulled out all stops during his visit. China wanted to impress on Americans their respect for our country.
Vietnam announced it will allow a US aircraft carrier to visit, the first time one has been in those waters since the Vietnam War. Many believe Hanoi is using the visit to provoke Beijing. They are right. The western Pacific is a geostrategic chessboard. The players have been at this game for centuries. With the rise of China and perceived decline of US interest in the region, the game has intensified.
Professor Chisuke Masuo, associate professor at Kyushu University’s Graduate School of Social and Cultural Studies, believes the US’s lack of commitment to the region has forced regional leaders to strengthen ties with each other.
Flashpoints — North Korea, sovereignty issues over island chains in the South and East China Seas, militarisation of South China Sea islands — are geopolitical challenges.
Prof Masuo is convinced President Xi wants to present to the Chinese people, on the 100th anniversary of the Chinese Communist Party in July 2021, a China that is the most dominant power in Asia.
On the negative side, President Trump has challenges at home. The economy is showing cracks in its foundation. The corporate media crows about a 4 per cent unemployment figure and the hundreds of thousands of jobs created but, on closer scrutiny, the numbers appear cooked.
Over the past year, hundreds of thousands of lower-level managerial white collar jobs and retail positions were lost. US manufacturing jobs are in trouble again. Harley Davidson Motorcycle Company closed its Kansas City plant, with 800 jobs gone.
The Wall Street Journal reported that 2.5 million homes in America are “under water” financially, with mortgage loans larger than the value of the homes.
Manufacturers are moving middle-class jobs offshore. US Labor Department data shows 93,000 quality jobs have been eliminated since Trump’s election. From 2011 to 2016, an average of 87,500 jobs were lost annually. Haemorrhaging of middle-class jobs continues. The chasm between Trump’s 2016 campaign rhetoric and reality grows.
The nation’s finances are on the cusp of chaos. The US government is no longer a functioning and responsible financial entity. Congressman Steve Womack, the GOP chairman of the House Budget Committee said the legally required budget resolution for Fiscal Year 2019 should be repealed. The process has become untenable. The Government now operates on short-term budget resolutions. They are either 30-day, 60day, or 90-day budget bills. This is how the most powerful nation in the world runs its financial affairs. Hence, the Government is now writing cheques it can barely cash.
America will be staring at $1 trillion deficits due to a bloated Pentagon budget and the ballooning of entitlement programs. Our national debt sits at $20.5 trillion.
Trump recently signed into law a massive tax cut ($1.5 trillion), passed by Congress without a funding mechanism. This will add $280 billion to the 2019 deficit. Trump wants a $1.5 trillion infrastructure project passed. Again, no funding mechanism has been identified. And he wants $33 billion for the Mexican wall.
Congress has approved the Pentagon’s new budget ($700 billion) and a disaster-relief bill ($85 billion). Like a drunken sailor on a three-day pass, America is drowning in debt and endless spending.