Trump Abandons Economic Reforms To Embrace War Spending

Tyler Durden's picture

Authored by Ryan McMaken via The Mises Institute,

In February, David Stockman pointed out that the Trump administration appears none too interested in addressing many of the economic issues that Trump claimed would be at the center of his administration. Instead, Stockman noted, Trump spent all his time obsessing over his travel ban — which he still can't get beyond the courts — and other non-economic issues. Stockman noted: 

It's the economy, stupid. ... Trump was elected because flyover America is hurting economically. The voters of Racine, Wisconsin and Johnstown, Pennsylvania are imperiled not because of some refugees, they're imperiled because their jobs have all been disappearing for decades. The problem is far more the Federal Reserve, Janet Yellen, the bubbles they're creating on Wall Street...

And that was even before Trump mishandled the Obamacare repeal. 

But now that it's April, it's all the more clear that Stockman was right. Trump and the GOP have already abandoned the Obamacare issue — and the Trump administration has now signaled there won't be any attempts at tax cuts anytime soon. 

In February, Trump was promising a corporate tax cut bill "in two or three weeks." Now, nothing's even on the horizon. Obamacare has also been relegated to the back burner. 

Nor should we expect anything on monetary policy. Trump has already hired a Treasury Secretary who praises Janet Yellen, and if Trump is as "anti-establishment" on monetary policy as he is on foreign policy, then we can expect Trump to offer simply more of the same. And, given Trump's big spending plans, Trump will certainly need the Fed with its ability to further monetize the deficit spending Trump is more than happy to keep going full speed ahead. 

Moreover, when the economy enters recession, we can expect Trump to call for both massive monetary and fiscal stimulus, just as his Republican predecessor George W. Bush did in the face of recession in 2001 and again in 2008. 

In response to the administration's obvious disinterest in economic issues, the Trump fanboys will surely cry "give him some time!" But, if Trump actually cared about these issues, he'd be talking about the need for tax cuts and relief from Obamacare. He'd be making speeches. He'd be meeting with Congress about it. He'd be telling voters to call their members of Congress and demand reform. He'd be giving press conferences on how we need to get the government off the backs of the people. 

But no. None of that is happening.

What's worse, what few changes Trump has made on regulatory reform have all been made through executive order. This means they will be immediately reversible when another administration comes in — probably four years from now. 

To make any lasting reform, Congress would need to take action on these matters, but Trump is either too lazy or too inept or too apathetic to do the hard work that comes with this type of lawmaking. In order to move beyond Rule by Decree, which is clearly Trump's favored type of governing, he'd have to work with Congress. But this so-called "master negotiator" apparently lacks the necessary skills.

It is now increasingly clear that the Trump administration is going to be at least four years of endless war, budget-busting spending, massive deficits, and more big government in general. His demonstrated preference is not for addressing the issues that won him the Rust Belt states. He's a war president now, and has better things to do.

Moreover, Trump has already declared 75 percent of the federal budget to be off limits to budget cuts, and has pledged to spent a trillion more in infrastructure spending on top of the already bloated social-spending budgets that he has pledged to not touch. 

He has also called for $50 billion more in military spending, in just the next year alone. 

That $50 billion is just chump change compared to what Trump will likely spend with his big plans for multiple wars, including wars in Syria and North Korea. Wars with boots on the ground — should Trump continue down that road — don't just cost a few hundred billion dollars. They cost trillions. According to one conservative estimate, the US has spent $3.6 trillion on wars between 2001 and 2016. (That not including future obligations to disabled veterans thanks to the wars.) What could have been done with that money? To use the words of Trump himself: "we could have rebuilt our country — twice." 

Indeed, it may be a repeat of the George W. Bush years when Bush — via Medicare expansion — gave us the largest expansion of the welfare state since Johnson's Great Society, and then went on to break the bank with massive deficit spending on wars and welfare. Much of this, by the way, was done during a six year period when the GOP had control of both the White House and Congress. 

Knee-jerk defenders of the GOP will no doubt point out that Obama spent immense amounts of taxpayer funds too, and that he placed huge regulatory burdens on American workers and business owners. No one denies that, nor did anyone seriously claim that Obama was going to be a budget cutter or lessen the burden of government on middle-class workers. Trump and his supporters do make such claims. 

If Trump's only claim to fame is going to be "Hey, I'm slightly less awful than Obama," that will probably be good enough for some people. But many of us aren't going to be falling over ourselves to thank Trump for the few scraps that fall from his table.

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Rican's picture

Surprise! Conman gonna con. 

Franklin Mint Chip's picture
Franklin Mint Chip (not verified) stacking12321 Apr 12, 2017 7:20 PM

Trump was a fraud. I'm glad Hillary didn't win too, but it turns out Trump is everything that Hillary promised to be.

NidStyles's picture

At least Trump's daughters are hot. Better than hearing Hillary preach to us about how evil men are...

Never One Roach's picture

Also, as bad as Trump is he has not forced Hillary's "Reparation Tax" on white peeples. He seems to realize that 40 years of free shit with AA is enough.

Shemp 4 Victory's picture

 

... there's no end in sigh ...

...because when you're a presidential-level whore, you go full DVDA.

MarkD's picture

Trump likes his cake while pushing buttons......... https://www.rt.com/news/384529-trump-xi-cake-syria/

Yup........ he feels the power of war. Makes his hands feel bigly.

BullyBearish's picture

just saw a program on the third reich with the very strong message that citizens can't just accept the lies their government tells them, they have a responsiblility to resist/remove an unlawful leader...

 

the bombing of syria was an unlawful act from both a domestic and an international perspective...

Luc X. Ifer's picture

Told you so 0hedge, same as Obama, when they got to see the real data they got it that unfortunately the situation is so bad that there is no other way to keep the current system/status quo but the way you have seen it unforlding the last 16 years. Brace for 8 more at least, if it is going to stop earlier it will stop abruptly and badly, most likely the 3rd, this time nuclear war.

Parabolic Sine's picture

so are you going to vote for him again next election just because of his stuck up cunts? Fuck that. Vote the fucking republicans out of office in 1.5 years so trump cant do anything. Then vote for libertarians, the only group of people who seem to care for this country.

Vilfredo Pareto's picture

And allow democrats to raise my taxes and have a De facto end of border control?

 

The result of your suggestion will be to elect democrats.  

 

If an illegal alien saying the magic words in the border area allows them free passage,  that is a functional ending of border control even if the law technically is still in place 

Arrow4Truth's picture

Fuck your ideological bullshit. It doesn't matter who you vote for, the system is too corrupt to fix and is destined to fail... is caving-in now. Jesus couldn't correct the course of this ship now. If you vote at all, by definition you consent to their crimes. Goddammit. Think about it.

Libertarian candidates have the best ideas on most of the issues. That is obvious to critical thinkers. But the issues are but symptoms of a dis-ease. You don't cure the dis-ease by treating the symptoms, and this cancer has metastasized into every facet of the system. A key part of the dysfunction is epitomized in what you stated, "the only group of people who seem to care for this country." Specifically, "group of people" and "country." Define "group of people"... now, what does that have to do with me? Define "country", again, what does that have to do with me? I don't give a fuuck about the country. I do care about you brother, even though I don't know anything about you or who you are, but I care for my fellow man and don't give a fuck about the country. The country has never done anything for me... or you. The country is a legal fiction (soulless). It has stolen your birthright and you live day to day with the "country's" hand in your pocket. The point is you were told you were free. You are not.

You were told that law enforcement is here for your protection. SCOTUS has ruled that they are not. In fact, the very purpose of law enforcement is to find some reason to "cite" you for a fictional "violation" of their private laws (statutes) so that you can "appear" (I can attend, but cannot appear) before the "bench" (bank) to be judged (administrator) for your sin, for which you will pay penance (penalty/penitentiary), after which you are cleansed/reborn/resurrected... but still an enemy of the state.

You were indoctrinated to believe in obedience. Obey their statutes, obey their policies. Statutes and policies are not law my friend, but are the rules of engagement for the US corporation (28 USC 3002 (15)). In my 50+ years this country has never been in a declared war, yet has murdered millions under the guise of national security. Bullshit. National security had nothing to do with anything. They would argue that national security is critically important because there are so many that envy our way of life. Bullshit. They would not be a threat if you hadn't fucked them over by stealing their resources, decimating their way of life, and murdering their brothers and sisters.

Would the country be better off with a libertarian than a republicrat or demoncant? It would be nice to believe that it would but the definition of "believe" is: to have confidence in the truth, the existence, or the reliability of something, although without absolute proof that one is right in doing so; so the correct answer is no, it would make no difference. Forgive the rant. I'm alive and present here dealing with illusion and am done with trying to reason with unreasonable proposals. Please brother, wake... the fuck... up. I'm done now.

SixIsNinE's picture

you comparing lovely I to Chelsea Hubbel?   that's not fair

 

 

Vilfredo Pareto's picture

Lol.  Yeah, except he isn't trying to raise  my taxes and just being mean and scary has cut illegal border crossings 64 percent.

chumbawamba's picture

I'm starting a Trump "Re-Accomodation" Pool.  I have $50 on Feburary 11, 2018.

Now taking bookings...

I am Chumbawamba.

Got The Wrong No's picture

I think someone should look under Trump's toupee had see if he has scars from being lobotomize.  

Mr. Universe's picture

I think it was the film of the Dallas convertible ride that they sat down and showed him at the "Meet the Zionist/MIC get together" They let him know who runs the world and that they could do it either with or without his help...then again perhaps not, but either way, was this a quick turn around.

Vilfredo Pareto's picture

Yeah most of us realized it was a roll of the dice.  At least he was willing to pretend he wanted to cut the size of government, give us relief from obamacare, stay out of foreign entanglements, etc.    Hillary wouldn't even mouth those words lol.

 

There is still some hope.  

SixIsNinE's picture

very surprising the naivete of the Fight Club

 

The Don has to use the MIC or else the other players will abandon the Dolla!   got it!  

 

it's not complicated.  this is the Big Casino and all the chips are in and if the otha playas decide to throw it all out or cash out then what do we have left?  Zippo Brother & Sister Zeros !

 

got it - this is for all the marbles.  

 

BOJ says  they will take teh BitCoin  -  who's next?

 

Laddie's picture

He is an agent of the Tribe, like his father.

Ann Coulter on Lou Dobbs: “I Feel Like I’m Watching Dr. Strangelove” April 10, 2017
http://www.youtube.com/watch?v=n-HhfRkfXpY

The two noted that none of Trump’s other proposed policies appear to be materializing. Dobbs mentioned that John Kelly, the head of DHS, has effectively said that the Wall is a figure of speech.

“I did not know we had elected Jeb Bush President,” said Ann.

"In all times people have accepted words for acts."
-Protocol 5
The Protocols of the Learned Elders of Zion PDF "So what is this best-selling political tract of the 20th century, the reading of which carried the death penalty in Stalinist Russia, lauded by the likes of Henry Ford and Winston Churchill, and then loudly condemned for the past 60 years since it was briefly declared an anti-Semitic forgery (in a Swiss court in 1935 overturned by the Appeals Court in 1937)?"

US had ‘No Conversation’ With Mexico About Paying for Trump’s Border Wall, Rex Tillerson Admits

The Trump Tweets are priceless!
Putin Speaks on Alleged Assad Chemical Gas Attack in Syria, Asking for Evidence

SixIsNinE's picture

Strategy of Tension.  

 

The USA willingly gave , GAVE the USSR EVERYTHING -  in the 1950s USA State Department allowed the USSR envoy / ambassadors / apparatchiks to copy every single patent ever made in the USA - all tech all know how was given to the USSR.

who hasn't listened to Major Jordan?  

well step right up and learn  something new folks !   fake space program - fake cold war.

 

https://youtu.be/BCiylpzR60U

Speech from the 1960s. Major George Racey Jordan was responsible for fascilitating the transfer of American Arms and Technology to the USSR during WWII under the Lend Lease Program. He kept a detailed diary including Primary Source documentation.
http://federalexpression.wordpress.com/
http://federalexpression.wordpress.co...

WallHoo's picture

From what i have read,the protocols sound more like a fanboy for the landed aristocrasy(of that time) and entrenched interests(bankers,retailers,) than a ploy by the zionists to conquer the world.

In first glance it seems like a plot by the zionists(jews), but they(the zionists) seems to be only a scapegoat for the OH so greate god given right of the old dynasties to rule the filthy liberal mob with its democracy and freedom...and drinking????

Now i dont doubt that money and power dont conpire to have their way,i mean even you and me conspire,but this seem like bullshit.Every time there is a crisis,its always sin or drinking or drugs or sex but never those that have gathered wealth,never those that enjoy privilages and never those that (wait for it) enjoy RENT EXTRACTION at the form of interest,landed exploitation,natural monopolies or artificial monopolies...

After all,you never hear about a lemon crisis,but theres always a financial,or real estate,or oil etc...

Now dont get me wrong,im the last guy to defend the zionists or other pieces of shits.My countries first governor created a public debt free currency, guess what he was assasinated,a retarted german prince became our king and a national bank was established with rothchild as one of its first owners...

We never bow or bend the knee so tough luck for the landed fucks.

 

BandGap's picture

I was recruited by the CIA in the mid 80s as a scientist. People have no idea how strong willed these people are. I worked with Argonne people and people from the ONR (Office of Naval Research). These people aren't rough, just when they are on a path they don't deviate.  Not shitty people but very linear.

If people think Trump was tough because of a fucking reality show then I think he better adjust to the real reality, Fucking Mathis has ordered artillery barrages that have killed a lot of people. That's just one example. here are people in the CIA that do not see you as a person, only as a pawn. That's a few fucking levels above firing some asshole on TV.

Grow a set or go home Donny.

justdues's picture

Wow someone doesn,t want me going to Renegade Tribune ....Error 1006 access denied the owner of this website (Renegade Tribune ) has banned your IP address . WTF ??

SixIsNinE's picture

innertube censorship - it's here ... 

 

i hate the "warnings" that browers give you when going to a truther site ...    "are you sure you want to learn some truth there partner?"

 

 

GraveDancer's picture

The Road to World War III: Can the Dark forces of anti-Freedom trump Humanity? Kindle Edition

 

https://www.amazon.com/dp/B01MT31AXZ

GraveDancer's picture

The Road to World War III: Can the Dark forces of anti-Freedom trump Humanity? Kindle Edition

 

https://www.amazon.com/dp/B01MT31AXZ

balz's picture

I really thought he would be different.

Shame on me.

FUCK YOU TRUMP.

silverer's picture

Look, don't worry about it. If you've been stacking, continue on your plan to get out of the US within the next two to four years. Trump will make your gold and silver very valuable.

IndyPat's picture

He'll make it valuable, alright. Then he'll come to take it.

Son of Captain Nemo's picture

To ALL OF YOU WHO VOTED FOR HIM...

Forget the fact that you'll all be dead after he gets this thing "rocking & rolling"!...

As A MATTER OF PRIDE... WHAT ARE YOU PREPARED TO DO IN ORDER TO MAKE "HIM/IT" STOP?!!!

Son of Captain Nemo's picture

"Nothing they are just complainers."

Agree.

Which will make it even worse for them before they die in a deranged orgy of "Zion" death considering the blistering they gave "Hope & Change" without doing anything about that for 8 years!

LetThemEatRand's picture

I always enjoy reading complaints on message boards about people who don't do anything but complain on message boards.

NidStyles's picture

I know right?

 

Even more so when they are complaining about us somehow being responsible for what another person does hundreds to thousands of miles away from us all because we filling in a box on piece of paper before knowing what that said person was actually going to do.

 

I wish I could predict the future that accurately. I voted for him, and am not emabarssed or upset about it. This shit show needs to end, and if takes a Trump to screw the pooch and make it all burn down that much daster, then so be it. It needs to end. The Judeo-Zionist Empire needs to die, and Trump will kill it by making it become a real thing, at which point it will be destroyed.

Son of Captain Nemo's picture

"I wish I could predict the future that accurately. I voted for him, and am not emabarssed or upset about it. This shit show needs to end, and if takes a Trump to screw the pooch and make it all burn down that much daster, then so be it. It needs to end. The Judeo-Zionist Empire needs to die, and Trump will kill it by making it become a real thing, at which point it will be destroyed."

Wow!...

Is that abnormal narcissism talkin or are you just "happy" suicidal?...

hedgeless_horseman's picture

 

You are all welcome to come to Marfa in June and talk about what actions we can take.

Son of Captain Nemo's picture

Thanks h_h

But I think your meeting needs to be bumped up to somewhere in Leesburg Virginia or Frederick Maryland like it was 4/6/2017!

The saddest comment you can make is that if Americans were "fit-to-be-tied" they would have done something post-Maidan 2014 at the latest?

It's just too damn late!

Just Sayin

NidStyles's picture

Being able to accept reality isn't narcissism you idiot.

 

It's called being pragmatic.

Son of Captain Nemo's picture

Well Nid nothing like being pragmatic about narrowing the field by committing yourself to an early "check out"!

I guess if there are awards for that decision the Trump faithful will be at the front of the line to accept that "dubious" award?

new game's picture

boat has left the dock and the tide is a risen.

SixIsNinE's picture

way too close to the district of criminals  - no thanks.

Son of Captain Nemo's picture

Lets just hope that there are some heavy hitters still left in uniform that when they are given their "playbook" for Syria and Ukraine they will tell the likes of "Mad Dog" and the rest of the JCS insane at the Pentagram to go "FUCK THEMSELVES" and WALK off the job!!!

Son of Captain Nemo's picture

Yep LTER. You said it.

And that's why this experiment that didn't even make it to 230 years is on it's last "curtain call"!

NidStyles's picture

It wasn't an experiment, and I wish that fake story would die.