Good morning, another day another 24 hours of trumpster fires, lit by the tinder of well worn Republican mythology.
The Economy Works In Reverse. Let’s guess that the whopping increase in defense spending will be covered by an increase in “economic growth.” I doubt very seriously that my utility company would be much impressed by my assertion that increases in my power bill will be paid for by my getting up an hour and a half earlier every morning. The argument would go “because I get up earlier I will be more productive, and if I am more productive then my earnings will increase. If my earnings increase then I will have more money to spend, and therefore my bills will ‘pay themselves.'” Gee, perhaps if I aroused myself two hours earlier I could trade my vehicle in for a Cadillac CTS-V? Somehow, I don’t think my banker will be sufficiently enamored of my presentation to hand over the money.
There’s another facet of the administration’s fantasy economy which we need to discuss, at least two ways in which while waving its firearms it shoots itself in the foot. Round one into the metatarsal — anti-immigration rhetoric and action. Before theorizing about economic growth, the GOP might want to look at economic activity in our major urban centers, which depend in no small part on their immigrant communities.
Round two into the navicular bone comes compliments of heavy budget cuts. For the millionth time in this blog, there’s a formula for the gross domestic product. Once more C+I+G + (Ex-IM) = GDP. That G stands for government spending, and not just defense spending. Want to expand the consumer economy? Then remember that every dollar spent on the SNAP program almost doubles in economic activity.
Round three into the phalanges: Seek to limit increases in the minimum wage. Evidently it has not occurred to GOP economists that people do not spend money they do not have. They can accumulate debt (which Wall Street is only too happy to securitize) up to a point, but the point is quickly reached. Delinquency happens, leading to defaults, leading to the unraveling of all those beautifully packaged tranches of securities. We know what happened last time.
Round four into the cuboid, continue the progress of income inequality, the trends of which promote the accumulation of wealth into fewer hands, creating a surplus to be used not for corporate promotion and expansion but for the collection and trading of risk diversion securities or for corporate buy-backs which do NOT generate economic growth in the overall economy but bolster the financial sector. Have I been railing about Financialism before? Constantly?
Four shots into the foot and we’re not walking, much less running, anywhere towards overall economic prosperity. It’s the return of the old, stale, Trickle Down Supply Side Hoax nurtured and pampered by right wing think tanks and GOP orthodoxy.
And now, we should return to a discussion of why we need an independent commission to investigate the political and economic ties of the Trump-Bannon regime to the Russian government. We might also want to avoid the trap of calling for a special prosecutor, which would only have the authority to investigate outright crimes, when what we need immediately is an investigation into the possibly profound security risks in the executive branch. But that’s a discussion for another post.