Three amigos in the White House
President Donald J. Trump is, according to many, highly unpredictable in the White House; even more observers think that two wild men, both Mexican haters, now heavily influence the President. They are anti-immigration/ anti-mexican fanatic Stephen Miller and Peter Navarro.
Navarro is a Harvard PHD and is a former University of California Irvine economics/business professor. His thinking can and will cost Americans billions of dollars and lower our standard of living. Trump loves this man.
He writes on myriad subjects of trade, economics and bitter self-published books ascribing his failure as a political candidate to others in San Diego, California, where he has unsuccessfully run for city council, county supervisor, Mayor and for the U.S. Congress.
Navarro and I have history. He invited this writer to participate in his self-produced public access cable program, a weekly “Sunday-type” punditry show. Didn’t matter, I never voted for him. Buried in a tenured professorship (where 36 percent of students are of Chinese or other Asian origin) and a political career that didn’t pass muster at the ballot box, his published tirades against China and Mexico trade came to candidate Trump’s attention. When Donald Trump won the Presidency he promptly appointed Navarro to the White House post of Director of The Office of Trade and Manufacturing Policy. Navarro is, like Trump, a trade hardliner. They believe that China is a bandit trader and is undermining American business and manufacturing; they think the same of Mexico and NAFTA.
Navarro and President Trump have been so close that White House reports have the President looking around at meetings asking, “Where is my Peter?” when Navarro isn’t present.
White House gossip says Chief of Staff John Kelly moved Navarro’s stand-alone-office into the National Economic Council (NEC) where he reported to former NEC Director “free trader” Gary Cohn. That conflicted with Navarro’s theories of revenge on China and Mexico. Navarro’s ability to walk in on President Trump was ended by new Chief of Staff Kelly. So, says White House gossip.
Navarro told “Politico” — “I’m a chain of command guy and will follow Chief Kelly’s orders…the chief has assured me I will continue to have the same seat and voice at the president’s decision-making table.”
Navarro’s voice was, in the view of some, lacking in logic, facts and long-range view.
The resignation of Presidential Counsel Steve Bannon isolated Navarro and his hardline views on China and Mexico to a handful of allies. In fact, Presidential Senior Advisor Stephen Miller was, perhaps, the only Pre-inauguration ally left.
Mike Wessel, commissioner on the U.s.-china Economic and Security Review Commission, a n 18-year-old watchdog panel who has known Navarro for years says: “I think this (Kelly’s transfer) is very troubling because Peter was maybe the last person in the White House who was guardian of the president’s economic and trade commitments during the election.”
Navarro’s isolation was welcomed by many. When would Navarro resign, asked White House observers. His isolation by General Kelly and cut-off of his contact with the President shrunk his presence and ability to advise the President. Many observers thought Navarro’s tough-on-trade would be lost in the maze of White House hallways.
Navarro believes that we should punish China and Mexico because of the trade deficits we have with them as if trade deficits are bad and destructive. Some economists think so; there are, however, many who say trade deficits are not as bad as some think. Navarro does not mention that we have trade deficits with almost every country we trade with. From tiny countries like Albania, Andorra, Armenia, Africa’s Camaroon, Denmark, the Republic of San Marino to much larger Russia, trade deficits are the norm.
While our trade deficit with China is the largest, the second largest is with Germany and then Mexico. The U.S. does not have trade agreements with China or Germany like we do with Mexico.
Trade consists of selling goods and services to people in another country and buying goods and services from those people. When our trading partner sells us more than they buy, we have a trade deficit. It can be wiped out by selling them more. Based on announced tariffs on steel and aluminum, neither Navarro or Trump seem to understand that.
One must ask Harvard PHD in Economics, Peter Navarro, how does one work to shrink or eliminate trade deficits, by imposing tariffs or by arranging mutually-beneficial rules of trade? Punishing the American consumer isn’t the answer. Former NEC Director Gary Cohn and most White House staff knew that, Navarro doesn’t; that is why Kelly effectively demoted him when Kelly became Chief of Staff.
Unfortunately for the United States, for trade agreements and trade itself, Navarro really wasn’t demoted in the eyes of President Trump; he signed Navarro-recommended tariffs on steel (25 percent) and aluminum (10 percent). NEC director Gary Cohn’s resignation leaves Peter Navarro in charge of trade policy. That is not good for Americans; it will cost Americans billions of dollars.