imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Subscribe Calendar Publish RSS
Features
latest news
best of news
syndication
commentary


KILLRADIO

VozMob

CopWatch LA

ABCF LA

A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List

LAAMN List





IMC Network: www.indymedia.org africa: ambazonia canarias estrecho / madiaq kenya nigeria south africa canada: hamilton london, ontario maritimes montreal ontario ottawa quebec thunder bay vancouver victoria windsor winnipeg east asia: burma jakarta japan korea manila qc europe: abruzzo alacant andorra antwerpen armenia athens austria barcelona belarus belgium belgrade bristol brussels bulgaria calabria croatia cyprus emilia-romagna estrecho / madiaq euskal herria galiza germany grenoble hungary ireland istanbul italy la plana liege liguria lille linksunten lombardia london madrid malta marseille nantes napoli netherlands nice northern england norway oost-vlaanderen paris/Île-de-france patras piemonte poland portugal roma romania russia saint-petersburg scotland sverige switzerland thessaloniki torun toscana toulouse ukraine united kingdom valencia latin america: argentina bolivia chiapas chile chile sur cmi brasil colombia ecuador mexico peru puerto rico qollasuyu rosario santiago tijuana uruguay valparaiso venezuela venezuela oceania: adelaide aotearoa brisbane burma darwin jakarta manila melbourne perth qc sydney south asia: india mumbai united states: arizona arkansas asheville atlanta austin baltimore big muddy binghamton boston buffalo charlottesville chicago cleveland colorado columbus dc hawaii houston hudson mohawk kansas city la madison maine miami michigan milwaukee minneapolis/st. paul new hampshire new jersey new mexico new orleans north carolina north texas nyc oklahoma philadelphia pittsburgh portland richmond rochester rogue valley saint louis san diego san francisco san francisco bay area santa barbara santa cruz, ca sarasota seattle tampa bay tennessee urbana-champaign vermont western mass worcester west asia: armenia beirut israel palestine process: fbi/legal updates mailing lists process & imc docs tech volunteer projects: print radio satellite tv video regions: oceania united states topics: biotech
printable version - js reader version - email this article - view hidden posts - tags and related articles

Trumponomics: Failure Pre-Programmed

by Rudolf Hickel Wednesday, Apr. 19, 2017 at 7:37 AM
marc1seed@yahoo.com

Macro-economic and ecological connections are simply ignored with the concentration on short-term profit. The planned reduction of corporate taxes from the current 35% to 15 or 20% recalls the Laffer-curve as the basis of Reagan's fiscal policy error.

TRUMPONOMICS – FAILURE IS PRE-PROGRAMMED


By Rudolf Hickel


[This article published in March 2017 is translated from the German on the Internet. Rudolf Hickel is a critical economist with the Bremen study group Alternative Economic Policy.]


Donald Trump’s election was based on the political instrumentalization of socioeconomic fears of those who fell from the middle class in the US through job losses and changing to precarious work. Paul Krugman speaks of the falling “white working class.” The desolation of once flourishing industrial districts (“Rust Belt”) symbolizes the regional economic collapse. Trump also found support in the rural population uncoupled from the modernization process. Trump manipulated these reality-based anxieties with the claim that local jobs were ousted by the export-surpluses of Germany and China and “stolen” by the shifting to foreign countries. With many untruths and distortions, Trump succeeded in being identified as the “rescuer” by vast numbers of economic losers. Hatred for the “Washington Establishment” who covered up the social truth with their often lying “political correctness” also helped him.


With his basic decisions and his proposed 2018 budget, the question is raised whether the new policy will benefit those in rural areas who voted for him expecting to be free from poverty work and social descent. The following double judgment seems likely if his policy initiated with drumbeats is not retracted:


Firstly, those who expected from him an improvement of their situation will not see anything positive in his policy. Yes, the Trumpian policy will worsen their job chances and social situation. They were merely instrumentalized as a herd of voters. The winners are the owners of assets and the super-rich.


Secondly, the trade policy, financial policy and regulatory policy under the strategic goal “America First” will end in a weakening of the US. In addition, a setback can be expected in the inadequate multilateral projects arduously built over decades (WTO, IMF, World Bank and the UN).


The instruments of the most important policy fields are erroneously set up and made confused, contradictory and opportunistic by economic lobbyists in the Trump cabinet:


• The screening by protectionism with tariffs and a border-equalizing tax up to 20% on imports in the US will weaken international competitiveness through meager innovative pressure.


• The planned deregulation of the financial sector disciplined with the Dodd-Frank Act as an answer to the mega-financial crisis of 2007 makes probably a new collapse of the financial system with effects all over the world. Abolition of stress tests, prohibition of speculative investment banking and resolution procedures for transgressing banks (“living wills”) are at the center.


• The planned reduction of corporate taxes by the central state from the current 35% to 15% or 20% recalls the Laffer-curve as the basis of Reagan’s fiscal policy error. Additional investments of businesses should not be expected. Pressure on the state budget will increase through tax shortfalls. The division between rich and poor will intensify.


• Trump’s proposal for his first budget provides an increase of military spending (from $521.9 to $574 billion, ten percent) and Homeland Security (seven percent). Veterans whose budget will rise six percent to $78.9 billion are among the winners.


• Financing the $1 trillion public infrastructure spending for transportation, streets, bridges, schools and public buildings announced in the election campaign is unclear as in the past.


• Social policy only occurs in the form of planned cuts of measures gained through struggle. Housing with subsidized rents is cut twelve percent. Experts expect the loss of social housing and allowances for millions of citizens. Spending on health will be reduced 16% through the planned reduction of Obamacare. Altogether 52 million citizens will be uninsured with its complete abolition. Only 28 million were uninsured under Obamacare.


• On one side, ecologically-threatening oil production projects will be resumed according to the government motto “Climate catastrophe is impossible.” On the other side, federal environmental spending will be cut enormously. The US will withdraw completely and financially from the international climate change initiatives (also from the climate fund of the “Paris Agreement on Climate Protection”).


Apart from a terrible incompetence in the consultation environment of Donald Trump, these proposals are based on fallacies and a reality distorted counterfactually. Macro-economic and ecological connections are simply ignored with the concentration on short-term profit-seeking. The government ideology of the US follows the shady business model of the former real estate tycoon Trump. The daily stock prices of US corporations are the focus. The necessary social and ecological sustainability does not have a chance.


Trump already claims success for his policy. Fake News per Tweet also dominates here. The stock exchanges blind for future developments and the politically-cuddled big banks count for the short-term profiteers. The strengthened economic growth and declining unemployment are the fruits of the earlier Obama policy. The inflation that the Federal Reserve announced with the first interest rate increase under Trump is now critical. If the expected continuing upgrading of the dollar occurs, the protectionist trade policy will break down through the inexpensive imports in the US.


The economic-, financial- and social policy demonstrates unmistakably that those who voted for Trump hoping for better working- and living conditions belong to the losers unlike the big shots of the financial industry and the US multinationals. If this knowledge torments the instrumentalized, then Trumponomics could break down politically as well as economically.
Report this post as:
Share on: Twitter, Facebook, Google+

add your comments


LATEST COMMENTS ABOUT THIS ARTICLE
Listed below are the 10 latest comments of 1 posted about this article.
These comments are anonymously submitted by the website visitors.
TITLE AUTHOR DATE
`The Simpsons' on Trump's First 100 Days: Death and Prozac marc Thursday, Apr. 27, 2017 at 7:28 AM

Local News

Chris Ballew beat up by Pasadena police J05 5:01PM

Retired LAPD Sgt. Cheryl Dorsey explains how the LAPD's Board of Rights hearings work J05 3:40PM

An Ex-Cop Talks About Police Shootings J05 3:39PM

Do Nukes Kill? J02 4:40PM

Letter: Support Proportional Representation for the California State Legislature J01 1:23PM

Community Rallies in Santa Barbara in Solidarity with Inmate Firefighters D22 9:59PM

LAWSUIT ALLEGING FEDERAL VOTING RIGHTS VIOLATIONS IN KERN COUNTY D22 8:56PM

The Video ICE Wishes Was Never Made Public D22 8:39PM

Mitchell Englander going after homeless people D18 5:24PM

“Animaniacs in Concert!” with Voice Artist Rob Paulsen, Sat., Jan. 20 in Santa Clarita D18 4:30PM

The Eagle Rock Peace Vigil Marks 15 Years N27 11:23AM

12/2-3 LA Binational Conference To Cancel NAFTA and Unite Workers Of Mexico and the US N27 3:44AM

Winter 2017 National Immigrant Solidarity Network Monthly News Alert! N26 9:22PM

Nuclear Shutdown News November 2017 N26 4:23PM

Report Back on November 18th Counter Demonstration Against Anti-Muslim March N20 10:57AM

Report Back on November 18th Counter Demonstration Against Anti-Muslim March N19 7:12PM

National US Gov as wellas EPA slow to act on Abandoned uranium Mines Cleanup in Southwest N15 10:50AM

OUR HOUSE Grief Support Center Hosts 9th Annual Comedy Fundraiser N14 10:47AM

BUSTED: Watch LAPD cops plant drugs in black suspect’s wallet – unaware body cams were on N10 5:32PM

lapd shootings 1998 - 2015 N06 11:21PM

“Oh Say Can You See” How the LAPD Singing the National Anthem Cost the Dodgers WS Game 7? N03 7:30AM

Car drives into immigration protesters outside Rep. Ed Royce's office in Brea N02 2:06PM

PACIFICA RADIO BOARD SECRETLY OK'S BANKRUPTCY FILING & SEEKS NY SIGNAL SWAP O25 4:49PM

LAUSD, Privatization, Charters And The Fight To Defend Public Education Education Conferen O04 12:10PM

Afghan Women Read RAWA.org founded 1977 S27 9:42PM

[France] The State Attacks Indymedia-Grenoble and Indymedia-Nantes… Solidarity! S25 5:18PM

More Local News...

Other/Breaking News

Paraphysique de la thanatologie J23 2:11AM

 Women of LA Rise Again to Denounce Trump Photoset 4 J22 9:07PM

Women of LA Rise Again to Denounce Trump Photoset 3 J22 8:24PM

Women of LA Rise Again to Denounce Trump PhotoSet 2 J22 7:36PM

Women of LA Rise Again to Denounce Trump PhotoSet 1 J22 7:14PM

Honduras: Amnesty International Defender fears for protesters trialled in army battalion J22 6:31PM

Rules of Survival Hack Online Generator J22 8:57AM

America Reacts to a Low-Point J22 6:43AM

Women's Political Representation & Electoral Reform J21 12:43PM

L'impermanence capitalisée J21 1:02AM

Brazil: Thanks to the supportive American democratic congressmen! J20 3:54PM

Homeless Mentally Ill: Some History J20 12:17PM

Where are the women rights advocates J20 4:45AM

USA:A Decadent, Immoral Society J20 2:40AM

Irénisme d'antinomie J20 1:51AM

Social media giants feel the heat at Palestinian digital conference J19 7:52PM

2017 Reflection: Palestine Teaches Us We Must Unite Around a Common Vision for Liberation J19 7:45PM

With U.S. Backing, Turkey Invades Kurdish Syrian Afrin J19 6:43PM

Tekken Cheats | Tekken Hack Coins and Gems J19 5:45PM

Progressive Reforms Were the Reaction to the Recessions and Social Turmoil in the 1880s J19 2:41PM

Brazil: And now what, Mr. lawfare man of the year? J19 2:23PM

Government Shutdown Solutions Could Leave Out Disaster Aid for Puerto Rico J19 11:01AM

The Shortwave Report 01/19/18 Listen Globally! J18 4:26PM

Tax Reform in the US: Trump's Attack on America J18 4:05AM

Paraphysique du No Future J18 2:14AM

Is Economic Speculation a Form of Structural Violence? J16 6:07AM

De Malik Oussekine à Rémi Fraisse, éréthisme policier J16 5:01AM

Epilogue: Pakistan on the chopping block in 2018? Zahir Ebrahim | Project Humanbeingsfirst J15 3:16PM

More Breaking News...
© 2000-2003 Los Angeles Independent Media Center. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by the Los Angeles Independent Media Center. Running sf-active v0.9.4 Disclaimer | Privacy