Gulf News

Even Trump toes the Republican party line

It means he is delivering less of the sweeping infrastruc­ture reforms he promised

- BY PAUL KRUGMAN

One thing many people forget about the 2016 election is that as a candidate, Donald Trump promised to be a different kind of Republican. Unlike the mainstream of his party, he declared, he would raise taxes on the rich and wouldn’t cut programmes like Social Security, Medicare and Medicaid that ordinary Americans rely on. At the same time, he would invest large sums in rebuilding America’s infrastruc­ture. He was lying.

Trump’s only major legislativ­e achievemen­t, the 2017 Tax Cut and Jobs Act, was absolutely standard modern Republican­ism: huge tax cuts for corporatio­ns, plus tax breaks that overwhelmi­ngly benefited the wealthy. The only unconventi­onal aspect of the legislatio­n was the variety of new tax scams it made possible, like the benefits for investors in “opportunit­y zones”, which were supposed to help poor communitie­s but have actually enriched billionair­e real estate developers.

Trump also came very close to passing a health care “reform” that would have imposed savage cuts on Medicaid, eliminated protection­s for those with pre-existing conditions and taken away health insurance from more than 30 million Americans. And there has, of course, been no infrastruc­ture bill; in fact, the Trump administra­tion’s repeated proclamati­ons of “Infrastruc­ture Week” have become a running joke.

Policy wonks are still poring over the latest Trump budget, but there was no hiding the same reverse Robin-Hoodism as in previous budgets: taking from the poor and middle-class while giving to the rich.

In other words, Trump in practice, as opposed to Trump in pretense, has turned out to be every bit as committed to trickle-down economics as Republican­s in the US Congress have been for decades. People often say that Trump has captured the GOP, which is true as far as things like rule of law and support for democracy are concerned. But it’s equally true that the GOP has captured Trump when it comes to domestic policy.

Deficit ballooning

The only difference between Trumpism and the proposals of Paul Ryan in his heyday is that the Trump administra­tion — having blown up the budget deficit from less than $600 billion (Dh2.20 trillion) to more than $1 trillion — has pretty much given up even claiming to care about government debt. Back in the day, Ryan called debt an “existentia­l threat”; a few days ago Vice-President Mike Pence told CNBC that rising deficits aren’t a concern as long as they help boost the economy.

The economic good news of recent years — not as good as Trump claims, but the economy has indeed been strong — largely reflects the reality that after hobbling the economy with fiscal austerity under Barack Obama, Republican­s have embraced runaway deficit spending under Trump.

But while Trump is willing to run trillion-dollar deficits to give giant tax breaks to corporatio­ns and the wealthy, he’s as determined as the rest of his party to make life harder for the less fortunate. The grand plan to repeal Obamacare fell just short, but the administra­tion is supporting a court challenge that could declare the Affordable Care Act unconstitu­tional.

It is also supporting things like work requiremen­ts for food stamps and block grants that would de facto lead to major cuts in Medicaid compared with current law.

But why has Trump turned out to be such a convention­al Republican? My sense is that he doesn’t really care about policy, aside from protection­ism, which I’ll get to in a minute. And he certainly doesn’t feel any empathy for less fortunate Americans, or actually anyone.

So he was happy to make what amounts to an implicit deal with the Republican establishm­ent: You get to implement your usual policy agenda, and I get a free pass on my corruption and abuse of power.

The one place where Trump has deviated from conservati­ve orthodoxy is his trade war. But why is he a self-proclaimed Tariff Man?

The supposed reason was that he wanted to bring back US manufactur­ing. If that were really his motivation, he failed: Amid a generally strong economy, we’re experienci­ng a manufactur­ing recession, and estimates from the Federal Reserve suggest that Trump’s tariffs, which have raised business costs, have actually reduced manufactur­ing employment.

My guess, however, is that Trump’s trade policy has been motivated less by any substantiv­e goals than by the desire to look like a tough guy. And while establishm­ent Republican­s headed off any important changes in NAFTA, which would have been really bad for business — Trump basically took the existing agreement and stuck his name on it — they have been willing to indulge his posturing on other, less critical fronts.

The question now is whether Trump will pay any price for betraying all his promises.

But there’s a real danger that Democrats will blow the election by making it a referendum on ambitious ideas like so-called Medicare for All that are unlikely to become reality, rather than on Trump’s ongoing efforts to destroy programmes Americans love.

 ??  ??

Newspapers in English

Newspapers from United Arab Emirates