We Are Russia In Ukraine
In case you haven’t noticed we just declared war on our independent neighbor Canada. We haven’t sent an army yet, but that’s only because we think we can win with financial weapons. But there’s no mistaking it — it’s war. And our declaration of war was beyond ludicrous — for few immigrants, just about no fentanyl, and a balance of payments deficit that had nothing to do with protectionism. The real reason is no better — a vanity project so that Trump can say he personally added the extra territory to the USA.
That’s pretty bad, but it is certainly not the worst of the lying going on. For that, you can point to all the talk about getting rich. We’re constantly told that everything going on, no matter how painful or immoral is about getting rich. But no one has any intention of creating a world where the population gets rich.
There is no linkage between all the firings and the well-being of the population — the money being saved is to justify the tax cuts for rich people and Wall Street. The tariffs are a sales tax paid by buyers — a regressive tax. The deportations will raise prices even on basic foodstuffs and essential services such as elder care. Finally and most importantly, as even Adam Smith understood and the entire nineteenth century demonstrated, the big corporations are not going to shower golden paychecks.
If you want to understand what’s in store for the population just look at what uncontrolled free enterprise did in the nineteenth century. The picture was very much like the story Trump tells — the European powers dominated their colonies and brought all the profits home. Industrialists made fortunes, controlled government, and kept the work force desperate. Uncontrolled capitalism is good at making money for itself full stop. Most people are in no position to bargain.
There is no miracle world of uncontrolled free enterprise — the only people who preach that religion are handsomely paid to do so. Governments can do bad things too, but without the countervailing power of government there is no one to speak for the well-being of the population. Just look at the problems facing us today:
- AI (with robotics) is already becoming a hit on employment. Musk’s savaging of government jobs is actually a foretaste of what to expect throughout the private sector. Someone will have to help.
- Climate change is real — whether Trump likes it or not — and there will be major changes to be managed if the population is to be kept whole.
- Education and healthcare are necessary for personal financial success and stability. The private sector is not going to fund it. Punting it to the states is something business interests do to avoid paying for it. Musk goes a step beyond that — preferentially hiring H1B slaves whose education was paid-for by someone else and who can’t quit or change jobs.
- The technological environment is changing faster and faster. No one predicted just how far generative AI would be able to go. Unless we are prepared to spend real money on pure research we will be left behind. That means not only missed opportunities in the economy but these days also military weakness. Regardless of what politicians may say — the private sector does not do basic research.
Trump’s golden world does none of these things. It’s not good for the vast majority of people. Except in the very near term it’s not even good for the billionaires.
In business I’ve been to plenty of meetings where someone proposes a new idea — different and exciting, thinking outside the box. Frequently what makes it new, different, and exciting turns out to be that it’s wildly unethical. Wildly unethical may be different, but that does not mean good. In fact most of the time it’s terrible. And with Trump that’s what we’ve got.
Originally published at http://ontheoutside.blog on March 14, 2025.
