THE SHOWMAN AND THE REALITY

The Wizard of Oz is one of my all time favorite movies, a bit dated, but with some enduring values.  The Wizard himself was a nice enough guy who projected power that awed his subjects.  Dorothy was an innocent young girl who was focused on just getting back home. Somehow she looked behind the curtain and found he wasn't nearly as powerful as his subjects took for granted.

Donald Trump is a showman and superficially effective in some circumstances, but he is not a nice person.  For some intelligent people including many of his supporters they don't care.  Many of them think he is on their side and that he is accomplishing important things.  In truth not being nice is indicative that there might be something behind the curtain.  Admittedly if an advocate for what I believe in was a showman who got things of value done I wouldn't care an awful lot if he or she was a nice person. 

His supporters proclaim that Trump has done some very important things that benefit lots of people.  They point to a booming stock market and low unemployment rates.  They should be looked at as the short term results of misleading policies and also ironically a continuation of many discarded policies.

He attributes the economic boom (while exaggerating its historic uniqueness) to tax cuts and deregulation.  Behind the superficial claims comes the real force behind them.  The biggest donors were demanding large tax cuts and deregulation.  Some Republicans claimed the tax cuts will pay for themselves and deregulation would just free up business energy.   For a clearer picture of who wanted the tax cuts and deregulation:  http://www.therealjohndavidson.com/2016/07/dark-money-by-jane-mayer.html

The tax cuts do not pay for themselves and it is already evident that the government will have to borrow more money which in the end will raise interest rates and make it more difficult for the average person to borrow money.  Another course which is favored by many conservatives is to cut government expenses in a wide variety of areas including education, safety net programs, foreign aid, etc.  But not military which admittedly does provide jobs, but are they the ultimate jobs we want?

More seriously deregulation is portrayed as undoing unfair restrictions on honest business men.  The problem historically has been that some of the more successful businessmen have little hesitation to take advantage of innocent consumers.  This was very evident in the 2008 recession when money lenders were on one hand more generous, but also deceptive.  Many borrowers found themselves over their heads.  Banks and investment houses were also big donators and demanding looser regulations.  Eventually the con men will disrupt our economy.  Chances are the wealthiest will suffer the least.  Check:  http://www.therealjohndavidson.com/2015/10/regulation-how-we-protect-ourselves.html

International relations is a relatively safe place to spout off.  Only it is not.  We now live in an increasingly inter-connected world.  What is the point of alienating nations that have historically been supportive?  When most of the world recognizes climate change as a major concern (more on that below) the United States federal government makes a very emphatic statement as it withdraws from the Paris Agreement.  Trade agreements that have benefits are ridiculed, but are tied to jobs right around the globe and have engendered peaceful relations.

The Iran Agreement was not designed to take care of every complaint against Iran, but was focused on the most serious concern to limit nuclear arms proliferation.  Several nations with different politics united to force compliance.  Yes everyone realized that Iran might not live up to its part, but the most comprehensive protections in all history were designed to protect international interests.  Like many countries Iran has conflicting factions and those who distrusted the American government have gained influence as a result.  America has created distrust.  http://www.therealjohndavidson.com/2015/07/the-iran-nuclear-agreement.html

Immigration is perhaps the most flammable issue.  Immigrants are pictured by those in power as job stealers and cultural diminishers.  It hides the fact that the real job squeeze comes from automation and the desire of those in power to maximize their profits by seeking the lowest wages with the least regulations.  It overlooks the historical value of diversity and also the global refugee crisis created by global trends with which most of us are complicit.  Some more thoughts on the refugee problem http://www.therealjohndavidson.com/2018/04/rescue.html

Climate change is increasingly being recognized as one of the most serious concerns for all living beings although others argue that the threat of a nuclear war is maybe more serious.  Again vested interests have found bribing politicians the best way to stifle any efforts to cramp their profits.  Some of the efforts to lessen the worst effects of climate change are tied to reducing pollution.  One area Trump felt was successful was the work of Scott Pruitt who eliminated dozens of restrictions on polluters and after his overwhelming corruption forced him out his successor has carried on.  Another example of putting the fox in charge of the hen house but in this case everyone's health is endangered.

To a Canadian such as myself, the fight over health care seems ridiculous.  Canadians live longer and pay less for their healthcare than Americans do.  Not unusual as most developed nations are very similar in comparisons.  Why aren't Americans asking their politicians about how they can boost the outcomes of a health care program and who benefits from the current status?

Who benefits the most from the Trump regime?  There are of course individuals who are smart enough or lucky enough to be in a good position, but as groups I would suggest two.  The 1% who now have a thicker cushion to enjoy a high standard of living.  Another group is the anti-American forces, most specifically Russia who want the breakup  of international alliances and increased polarization in western nations. 

Who suffers the most.  Pretty much the bottom 90% of the population somewhat proportionately as the most unfortunate people are concerned.  Minority groups who are the brunt of blame and some considered sinners by the evangelical base.

As part of the conservative agenda is a desire to rid themselves of big government restrictions.  They have convinced those who have been protected by a liberal large government  that their interests are not protected.  Conservatives are quick to extol the advantages of private enterprise, but overlook the contributions of government  for their own benefit.  See how the government has boosted business:  http://www.therealjohndavidson.com/2015/07/the-entreprenurial-state.html

Voting is a right, but if it not used carefully can hurt those who make a poorly thought out decision.  Criticizing the Trump regime has the danger of overwhelming the victims who do not believe them anyway.  I hope no one has been overwhelmed by my list of misdeeds, but assure you it is an incomplete list.

AGE OF GREED by Jeff Madrick

"Age of Greed" reinforces my feelings of corporate conspiracies.  If you are a member of the 99% you must sometimes wonder why you are relatively poor and some others are so rich.  It is easy to  pick up on conspiracies that explain that others have played unfairly.  Really there is more to it than that, but it is sometimes comforting.  Not to relegate" Age of Greed" to weird conspiracy literature, but rather to use it as an example of how our western Capitalism works.

Jeff Madrick brings in history, starting from the 1960s' but with references further back, such as Roosevelt and the hatred of his New Deal.  Although we can become pretty disgusted with the shenanigans of today's political and economical power players, the problem goes back to human nature.

The first steps are bankers wanting to evade regulations.  Banking has always seemed a safe vocation, but not terribly exciting.  When they are able to evade, distort and change the rules banking becomes more exciting and profitable.  Risk taking increases and fraud becomes more common.

Around the 1970's a movement grew where conservative philosophers proclaimed that rich people deserve to be rich.  It was framed a little differently.  The marketplace was the tool of rationality and central government planning was disparaged.  The truth as others see it is that powerful people resent restrictions on their freedom.  They are attracted to philosophies and stories that justify their view of the world.

William Buckley,Jr. was able to articulate a conservative philosophy that was respected by other intellectuals.  Alan Greenspan, an admirer of Ayn Rand was accepted as adviser to presidents. Ronald Reagan, was able to use Hollywood looks and charm to convince many that "Government is not the solution.  Government is the problem. "  Lots of fraud artists such as  Ivan Boesky are described, but it was the philosophical and political groundwork that enabled them to prosper.

The proof that all men are not equal comes with the statistics that show productivity and wages not aligned as before.  The 1% are able to skim off what might have gone to the 99%.

One counter trend was exemplified by "In Search of Excellence" by Tom Peters who demonstrated that more money could be made by respecting and empowering the workers.  This movement had influence for awhile, but gradually waned as other forces took over.

George Soros, famous left wing sympathizer felt the markets were not rational and was able to take advantage of that amassing billions.  Herd behavior is not always predictable, but for those like George Soros who can pick out a trend overlooked by others there is an opportunity to make money. He is a man who is aware of social inequalities and has taken a good part of his fortune for progressive causes.

Eliot Spitzer, a very effective prosecutor of Wall Street abuse was put out of the picture.  It is true that his own human weaknesses brought him down from power, but it seems strange that few if any Wall Street bigwigs suffered from the financial shenanigans that led to disaster.

Inequality starts when someone is able to use leverage to gain an advantage.  At the same time that is the advice we are often given.  Save money, make a deposit on a house, borrow some money and wait for the price to go up.  Saving and risking can be virtues, but at some point some people are able to manipulate finances for their benefit, but to the detriment of others.  Finances do serve many valuable causes, but if they are not regulated problems can and do result.

Recently one story that caught my eye is from Tennessee.  As I understand it, Volkswagen with a history and comfort level with unions agreed to a vote of the workers to form a union.  Senator Corker announced that it would endanger expansion in Tennessee.  Volkswagen has denied  that an expansion decision would hinge on the vote results.  It does seem that part of the power structure resists any strengthening of weaker elements.

If you would like to learn more of Jeff's thoughts visit his website at:  http://www.jeffmadrick.com/