Even if I had a deep understanding of US and world politics and economics I could not hope to figure out what’s happening at the moment. We are at an important turning point in multiple processes, many of them dependent on unknowable contingencies.
But here’s an outline of some aspects that mass media analysts don’t seem to get.
The big event was Trump beating the entire Republican establishment as a complete outsider in a hostile takeover. Most attention has been directed at the subsequent defeat of the Democrats and the wailing and gnashing of teeth from their celebrities and media. But the situation on the Republican side is far more interesting.
Instead of splitting they have jointly celebrated defeating the Democrats and appear to have successfully formed a united administration. Both sides are indeed glad to be rid of the Democrat administration and can work together for reduced taxes, less regulation and some other points of agreement. It is also quite traditional for Republicans to accept budget deficits as long as they are not funding a Democrat administration. But the fact remains, President Trump has no party in Congress. They despise him and are cooperating only because they fear him.
Trump’s focus is on building his own party. If he had lost the primaries he looked like running as a third party (which he tried to do decades ago). If he had won the primaries but lost the election he would still have been at war with the Republican establishment, who could reasonably be accused of having treacherously helped the Democrats to win by attacking their own candidate. Having won, without any help from most of the Republican establishment he is now in a much stronger position to actually take over their party. If he doesn’t, they will find a way to get rid of him.
All members of the House of Representatives and one third of Senators come up for election in two years, together with State legislatures and governors. The mid-term primaries start in a year. Trump’s campaign organization has databases with more than 10 million email addresses and 2 million donors. Trump’s campaign more than doubled the numbers voting in Republican primaries (many of them former Democrats). Usually only small numbers participate in mid-term primaries and they are mainly mobilized by actual party activists – especially cronies of the local incumbents.
If Trump can keep his base mobilized over the next two years he will end up with a large party in Congress (and in the States) whether or not the Democrats regain majorities.
The media and celebrities are still helping by denouncing him as a deplorable outsider. That’s exactly what he wants to keep his base mobilized. He won because so many people are utterly sick of politically correct plastic insiders.
As far as I can make out the media actually do not get this. It is plausible that when they gave him enormous amounts of free publicity in the primaries they were consciously intending to help him beat the other candidates so that the Republicans would nominate a grotesquely deplorable candidate who would lose the election. But they actually seem to think it really matters that he has become more unpopular since the election under their onslaught. His popularity among Republican voters is what matters for the primaries and he is not harmed at all by attacks from media and celebrities.
So here’s one possible sequence of events.
Congress approves a fairly large infrastructure stimulus program and deficit as well as funding construction of a secure southern border and improved healthcare. Republican defectors would be outnumbered by Democrat collaborators.
Together with tax cuts and deregulation this has the expected effect of increasing GDP growth and thus jobs and wages at least in the short term. If Trump actually launched trade wars that could produce the opposite effect, even in the short term. But he can start lots of trade disputes that build momentum against globalism without actually initiating a trade war.
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