Im-Politic: Signs of Hopeless Division or Potential Unity?

Tags

Affordable Care Act, Democrats, election 2020, Gallup, healthcare, Im-Politic, Immigration, independents, Obamacare, Republicans, Trump

Polls like today’s Gallup survey that try to assess what national issues and problems are foremost in American’s minds are terrifically valuable, especially as big elections like the 2020 presidential race approach. Trouble is, Democrats and Republicans and independents of all kinds will struggle to find clear trends marked out in this morning’s survey, much less derive strong comfort from it.

The difficulties start with Gallup’s overall findings about how high various major issues rank on the public’s priority scale. Competing fiercely for the top spot, and mentioned more than twice as often as the next concerns, are “The government/poor leadership” (cited by 23 percent of respondents – in this case, “US adults”) and “Immigration” (cited by 21 percent). And to be more specific, the government/leadership option offered by Gallup included “Congress” and “politicians,” not simply the President. “Immigration” wasn’t further elaborated on.

In principle, some more light might be shed on who could benefit most from this poor government finding by examining the trends over time. But as the chart below shows, although the importance of the overall government issue began rising notably right after the last presidential election (indicating that President Trump is causing most of the anxiety), the ranking became unusually volatile in the middle of last year, and has stayed that way – including through 2019. This year, of course, has seen an unpopular partial federal government shutdown most often blamed on Mr. Trump, rising levels of partisan rancor, and the climax (for now) of the Russia scandals investigation. On the whole, though, it seems reasonable to conclude that this issue is cutting somewhat against the President.

Some evidence to the contrary, however, comes from the current separate figures for Democrats, Republicans, and independents. Democrats express the most concern about the quality of government and leadership, with 32 percent pegging it as the country’s top problem. But although only 21 percent of Republicans chose this option, that result was much closer to that of independents (19 percent) than the Democrats figure. Both independents and especially Republicans are much likelier than the Democrats to blame government failings on the Democrats who now control the House of Representatives, and therefore wield much more power in Washington than during Mr. Trump’s first two years in office.

Using these criteria, the Gallup immigration findings look even more promising for Mr. Trump. It’s true that using that single noun to describe the issue masks the distinction between respondents who consider current U.S. policy too restrictive or not restrictive enough.

But assuming – not too controversially – that Republicans favor more immigration curbs, Democrats fewer, and independents as a group coming down somewhere in the middle, it seems apparent that immigration-motivated Americans are likelier to be Republican and Trump voters. Indeed, only five percent of Democrats view immigration as the country’s biggest problem today, versus 18 percent of independents and 41 percent of Republicans.

As for the rest of the issues mentioned in the Gallup survey, the responses seem to offer hope for both parties. Relatively little concern is expressed about matters such as the economy in general, unemployment and jobs, poverty, and inequality – which looks like good news for Republicans and for the President, since these results clearly signal satisfaction with the so-called pocketbook issues. Ditto for the measly three percent figure recorded for climate change and other environmental issues combined, and the failure of gun violence even to make it into the rankings.

At the same time, Democrats should feel pretty pleased that “Ethics/Moral/Religious/Family decline” alarmed only three percent of respondents, and “Crime/Violence” topped the list for only two percent.

The most puzzling message sent by the Gallup results concerns healthcare – which, it’s widely agreed, helped the Democrats greatly during last year’s midterm elections, and could be a winner for them again in 2020, especially if Mr. Trump continues his war on Obamacare.

The seven percent of the public naming healthcare as the country’s biggest problem resulted in the third highest such score (behind “The government/Poor leadership” and immigration). But especially given its enormous importance for so many families’ finances no matter how the Obamacare fight turns out – and potentially into the future if the White House and both houses of Congress are won by Democrats seeking to expand coverage dramatically – seven percent is hardly astronomical.

But how should this number be interpreted? If it signals overwhelming satisfaction with the status quo, however uncertain its durability is Republicans could benefit – but probably only if they make clear that they won’t go for major change, either. Since Obamacare (officially known as the Affordable Care Act) has shaped the status quo, Democrats in principle could take heart – particularly if their most ambitious ideas on this front fall by the wayside.

And here’s the partisan split (which I don’t think undermines the above analysis): Healthcare is seen as America’s leading problem by three percent of Republicans, seven percent of independents, and 14 percent of Democrats.

This Gallup poll’s findings that so many different and even clashing concerns are troubling Americans these days – and in so many possibly different ways – could understandably be seen as evidence that Americans are hopelessly far from agreeing on national priorities. I prefer a more optimistic take: There’s a new winning consensus and lasting political realignment in the making if only the nation’s political leaders could break out of their ideological straitjackets and build it.

Im-Politic: After Mueller/Barr, Can Trump Be Trump?

Tags

America First, Attorney General, Betsy de, budgets, conservatism, conservatives, establishment Republicans, foreign policy, globalism, healthcare, Im-Politic, Immigration, impeachment, Kevin McCarthy, Obamacare, Populism, Republicans, Robert Mueller, Ross Douthat, seasonal workers, Special Counsel, Special Olympics, tax cuts, The New York Times, Trade, Trump, Trump-Russia, visas, William P. Barr

A week ago, I posted on the likely political impact of the end of Special Counsel Robert Mueller’s investigation of what have become known as the Trump-Russia scandals and of the release of Attorney General William P. Barr’s summary of its principal conclusions – which appear to put these charges and the threat of presidential impeachment they created behind Mr. Trump.

Now it’s time to think about a related and at least equally important subject: the policy effects. They could be profound enough to redefine the Trump presidency and the chief executive’s chances for reelection – even though the early indications seem to be saying exactly the opposite in ways that are sure to disappoint much of Mr. Trump’s political base. Here’s what I mean.

Ever since his administration’s opening months, I’ve believed that Mr. Trump’s policy choices have been strongly influenced by impeachment fears. Specifically, (and I have zero first-hand knowledge here) because President Trump feared that the Democrats and many mainstream Republicans were after his scalp, he concluded that he needed to appease his remaining allies in the latter’s ranks with policy initiatives they’ve long supported even though they broke with his own much less conventional and more populist campaign promises. 

In other words, it was the Russia and related scandal charges that were preventing “Trump from being Trump.”  

Moreover, this reasoning makes sense even if the President was certain that he faced no legal jeopardy. For impeachment ultimately is a political process, and although establishing criminal guilt is clearly helpful, it’s not essential.

The main evidence for my proposition has been the early Trump decision to prioritize Obamacare repeal over trade policy overhaul and infrastructure building; his almost libertarian-like initial budget proposal (at least when it comes to non-defense discretionary federal pending); his business-heavy tax cut; and numerous foreign policy moves that more closely resembled the globalist approaches he decried while running for the White House than the America First strategy his promised.

But although President Trump now seems certain to finish out his first term in office, he still seems to be currying favor with the Republican establishment. Just look at his latest budget proposal, and decision to go after Obamacare again – the healthcare move reportedly made despite the pleas of establishment Republicans like House GOP Leader Kevin McCarthy to move on from an issue now stamped as a major loser politically and threat to the party’s 2020 election prospects across the board.

It’s true that many of Mr. Trump’s trade and immigration policies still clash with the donor-driven agenda of the Republican establishment, and especially the party’s Congressional leaders. But even on these signature issues, the President arguably could be breaking even more sharply with the longstanding Republican and conservative traditions.

For example, Mr. Trump continues to keep suspended his threat of higher tariffs on many imports from China in apparent hopes of reaching a successful trade deal even though Beijing still seems determined to avoid significant concessions on “structural issues” (like intellectual property theft and technology extortion) and on enforcement.

On immigration, the President has just raised the 2019 cap on visas for unskilled largely seasonal foreign guest workers to levels never reached even during the Obama years. His administration also has permitted visas for farm workers to hit record levels and done little to stem the growth of work permits for foreign graduates of U.S. college and universities that critics charge suppress wages for high skill native-born workers.

One intriguing explanation for this continuing policy schizophrenia comes from New York Times columnist Ross Douthat. In a piece this past weekend, Douthat made the case that, although President Trump’s actual record has been largely heretical in mainstream conservative terms, when it comes to staffing (and especially key staff positions)

“there are effectively two Trump presidencies. One offers something like what the president promised on the campaign trail — a break with Paul Ryan’s green-eyeshade approach to entitlement reform, a more moderate tack on health care, an indifference to Obama-era conservative orthodoxies on fiscal and monetary policy.

“The other offers a continuation of the Tea Party’s insistence on spending cuts and Obamacare repeal, and appropriately its present leader is a former Tea Party congressman — Mick Mulvaney, the Zelig of the administration, whose zeal is apparently the main reason that the Obamacare lawsuit now has administration support.”

And the main reason for this confusing mix? The President has relied “on personnel who are associated with 2010-era G.O.P. orthodoxy, rather than elevating the kind of conservatives who have actively theorized for a more populist right.”

It’s so hard to argue with Douthat’s facts that I won’t. But they still leave the main puzzle unexplained – why so many of the President’s personnel picks have been so un-Trumpian. And much of the answer points to a problem that was clear to me ever since Mr. Trump’s presidential candidacy achieved critical mass and momentum, and that doesn’t seem solvable for the foreseeable future.

Specifically, as I’ve previously noted, conservative populists (I’m never been thrilled with this description of “Trumpism,” but for the time being it’s convenient) have never created the institutions and therefore cohorts of first-rate policy specialists remotely capable of staffing a conservative populist administration. Even if you want to identify immigration as an exception – where organizations like the Center for Immigration Studies put out top-flight studies – it’s clear that nothing of the kind has ever existed on the trade and foreign policy fronts.

And even worse, because of the long lead-times needed to achieve these goals, Mr. Trump appears doomed to dealing with shortages of competent true-believers as far as the eye can see. In fact, he’ll face a special challenge in the next few months, as the second halves of first presidential terms tend to see the departures of many early, often burned out appointees. And of course, the Trump presidency has already experienced much more than its share of turnover.

So I’m expecting an indefinite continuation of the eye-popping sequence of events of the previous week – in which Trump Education Secretary Betsy deVos announced an end to federal funding of the popular Special Olympics program, a public outcry ensued, and the President abruptly reversed her decision.

It’s hard to imagine that this kind of zigging and zagging can win President Trump reelection. But it’s also conceivable that the post-impeachment situation will “Let Trump be Trump” just enough – especially if the Democrats err in picking an overall strategy for opposing him.  After all, nothing has been more common in recent American political history than completely off-base predictions of Mr. Trump’s demise.

Im-Politic: Will Trump Let Trump be Trump on Issues?

Tags

Congress, conservatism, conservatives, Democrats, deregulation, establishment, Im-Politic, infrastructure, John McCain, Marco Rubio, midterm elections, Nancy Pelosi, Obamacare, Populism, regulation, Republicans, tax cuts, Trade, Trump

Ever since Donald Trump made clear his staying power in presidential politics, his more populist supporters have tried to beat back efforts of more establishment-oriented backers to “normalize” him by insisting that they “Let Trump be Trump.” The results of Tuesday’s midterm elections tell me that the populists’ arguments on substance (as opposed to the President’s penchant for inflammatory and/or vulgar rhetoric) are stronger than ever, but that the obstacles that they’ve faced remain formidable.

The “Let Trump” argument contends that the President’s best hope to attract the most voters has always been his willingness to reject positions that for decades have been conservative and Republican hallmarks, but that have become increasingly unpopular outside the realms of most national GOP office-holders, other Washington, D.C.-based professional Republicans and conservatives, and the donors so largely responsible for their power, influence, and affluence. These maverick Trump positions have included not only trade and immigration; but the role of government and the related issues of entitlements, healthcare, and infrastructure spending; and Wall Street reform.

But since his election, as I’ve argued, Mr. Trump’s willingness to embrace the full maverick agenda has been blunted by his vulnerability on the scandals front. Specifically, he’s seemed so worried about impeachment threats from Democrats that he’s been forced to shore up his support with the conventional Republicans that dominate the party’s ranks in Congress. Why else, I’ve written, would his first two years in office have so prominently featured strong support for right-of-center standbys like major tax and federal discretionary spending cuts; curbs on regulation; repeal of Obamacare; and bigger military budgets, rather than, say a massive push to repair and retool America’s aging or simply outdated transportation, communications, energy, and other networks?

It’s true that Trump remained firmly in (bipartisan) populist mode on trade (notably, withdrawing from the Trans-Pacific Partnership agreement and slapping tariffs on metals imports and many Chinese-made products), and just as firmly in (conservative) populist mode with various administrative measures and proposals to limit and/or transform the makeup of legal immigration – though many of his most ardent backers accuse him of punting on his campaign promise to build a Border Wall.

Yet this Trump populism strongly reflected the views of the Republican base – a development now not lost on conventional conservatives when it comes to immigration, even though they’ve been slow to recognize the big shift among Republican voters against standard free trade policies. By contrast, the President has apparently feared that Congressional Republicans would draw the line on the rest of their traditional agenda – or at least that he could curry favor with them by pushing it.

The midterm results, however, might have brought these political calculations to a turning point. On the one hand, there’s no doubt that most House and Senate Republicans, along with the donors and most of the party’s D.C.-based establishment, are still all-in on their tax, spending, regulatory, and Obamacare positions.

On the other hand, according to the exit polls and other surveys, the tax cuts didn’t even greatly impress Republican voters (let alone independents). And most Americans aren’t willing to risk losing Obamacare benefits they already enjoy (especially coverage for pre-existing medical conditions) by supporting Republican replacement ideas that may be less generous.

The message being sent by all of the above trends and situations is that President Trump may have even more latitude than he’s recognized to cut deals with Democrats. At the same time, the Democrats’ capture of the House of Representatives on Tuesday and signs that they’ll ramp up the scandal investigations could keep preventing him from “being Trump” on such issues and possibly antagonize most Republican lawmakers.

Of course, my political neck isn’t on the line here. But I’d advise Mr. Trump to follow his more unconventional instincts. The Congressional Republicans still uncomfortable with him ideologically must be aware that his personal popularity with GOP supporters has grown significantly since mid-2017, and that this surge owes almost nothing to their own priorities. So if they don’t help staunchly resist any intensified Democratic probes, their political futures could look pretty dicey, too.

One big sign that ever more establishment Republicans are getting “woke” on the obsolescence of much establishment conservatism: the efforts by long-time mainstream conservative/Republican favorites like Senator Marco Rubio of Florida to develop a Trump-ian agenda that can survive Mr. Trump’s presidency. Further, resistance in Washington to their efforts is likely to continue weakening, since so many of the President’s ideological opponents on the Republican side are leaving the House and Senate. (And of course, their spiritual leader, veteran Arizona Senator and 2008 Republican presidential nominee John McCain recently passed away.)

To be sure, Mr. Trump yesterday (rhetorically, anyway) erected his own obstacle to deal-cutting – his declaration that he won’t be receptive if investigations persist and broaden. House Democratic leader (and still favorite to become Speaker again) Nancy Pelosi has pretty clearly, however, signaled that she herself is not impeachment-obsessed, even if those exit polls say most of the Democratic base is.

As a result, I can’t entirely blame the President for still feeling spooked by the Democrats – at least this week. But what an irony if the most important opponent “letting Trump be Trump-ism” – whose broad popularity could well combine with the advantages of incumbency to outflank the Democrats, win the President a second term, and pave the way for a truly earth-shaking, lasting realignment of American politics – turned out to be President Trump himself.

Im-Politic: Want to Really Fuel Big Government? Ditch Trump’s Trade Policies

Tags

Affordable Care Act, big government, budget cuts, Congress, conservatives, discretionary spending, entitlement spending, healthcare, Im-Politic, industrial policy, Mick Mulvaney, Obamacare, Republicans, Trade, Trump, USAToday

USA Today‘s editorial yesterday on U.S. trade policy did an excellent job of stating a major objection to tariffs and other measures that interfere with international commerce – and one that understandably resonates strongly in a nation that prizes free market values, and especially among its conservatives: These trade curbs fuel Big Government, thereby preventing the economy from achieving its full potential, and harming the nation’s society and culture as well as the economy by sapping the attractiveness of individual initiative.

The essay also understandably focused on a development that looks like a poster child for trade-fostered Big Government – the process set up by the Trump administration to decide which companies will receive exemptions from recent metals tariffs, based on claims that adequate domestic substitute steel and aluminum products aren’t available.

In the words of the editorial writers:

“[T]he administration has imposed a new tax on imported metals and then put itself in a position to decide who has to pay it and who does not.

“This is Big Government at its worst — arbitrary and capricious, if not outright political, as it picks winners and losers in business. And all this is being done without any new law being passed and while a Republican Congress, which used to stand for free enterprise and limited government, remains supine.”

One obvious rejoinder is the observation that, however cumbersome the exemptions process may or may not be, Washington actually has an impressive historical record of “picking winners and losers in business.” Examples include the information technology hardware and software industries, which were practically launched with public (largely Pentagon sponsored) research and development funds, and critically nurtured by government (again, largely defense-supplied) markets; the world-class farming sector fostered by U.S. Department of Agriculture research findings; the equally world-class pharmaceutical industry aided by the National Institutes of Health; and an aviation and aerospace industry supported by the Defense Department, by the National Aeronautics and Space Administration, and by a NASA predecessor aeronautic agency. (For an excellent summary of this historical record, see this study from the National Academies of Science.) 

But there’s another vital point missed by USAToday and by conservatives who remain devoted to preserving or renewing the expansion of the existing free trade realm: If they succeed, they’re likely to see the kind of Big Government metastasis America has never experienced before. The reason? So many renumerative Americans jobs will be lost, and so much income destroyed, that political pressures for a much more generous welfare state will positively skyrocket.

Another favorite cause of newspaper editorialists like the USAToday writers and many Big Government-phobic conservatives – the return of mass immigration – will bring the same type of outcome, for many of the same reasons.

And if you think that the nation’s leaders will unite to uphold the causes of self-reliance and much smaller government, you weren’t paying attention to the recent fight over abolishing “Obamacare.” For better or worse, the national healthcare system created at the initiative of the former President remains largely in place even though its Republican opponents control the entire federal government and a huge majority of state governments because lots of these Republican politicians recognized that eliminating this latest entitlement would be political suicide.

At the same time, standard-issue conservatives aren’t the only Americans who may need to learn these lessons. Donald Trump belongs on this list, too. Interestingly, he won the presidency after running a campaign that both promised an Americans-First overhaul of trade policy and to protect the nation’s immense middle class entitlement programs – both of which clashed strongly with conservative dogma.

But his biggest first-year push as President involved going after Obamacare – well before he had achieved any of his trade policy goals, and before he even began pursuing them energetically. And he’s so far permitted his budget director, former Tea Party stalwart Mick Mulvaney, to propose numerous deep cuts in discretionary spending and even some entitlement spending that aren’t exactly middle class-friendly, either.

This set of priorities may have been unavoidable politically, reflecting Mr. Trump’s perceived need to establish some conservative bona fides with Congressional Republicans – who mainly still strongly support the party’s old orthodoxy, but whose staunch backing he would need in any impeachment proceedings.

At the same time, a fair number of those donors-friendly, offshoring-happy Congressional Republicans are retiring – largely because they recognize that Trump-ian trade and other unorthodox policies have won over the base. And although Democratic hardliners may indeed push successfully for impeachment proceedings if the party wins the House, it’s likely that, in the absence of a major smoking gun, this campaign could alienate independent voters – who are hardly gung ho to give Mr. Trump the heave-ho. Chances are they’d be even less receptive to an impeachment spectacle dominating Washington if the President distanced himself from meat-axe public spending cuts.

If this scenario unfolds, the loudest voices complaining that Trump-ian trade policies lead to Big Government could be mainstream media editorialists and pundits. But these voices would be less important than ever.

Following Up: Healthcare’s Outsized Job Creation Reported in The New York Times

Tags

Affordable Care Act, Chad Terhune, Employment, Following Up, healthcare, healthcare services, Jobs, Obamacare, private sector, productivity, subsidized private sector, The New York Times, Trump

Well this is pretty cool! A new New York Times op-ed piece has spotlighted a trend that RealityChek has long covered: how strongly the creation of healthcare services employment has dominated recent American job creation, and how this trend has been especially noteworthy since the financial crisis and Great Recession broke out nearly a decade ago.

At the same time, author Chad Terhune, who reports on the healthcare industry for Kaiser Health News and the California Health Care Foundation, explains a major dilemma being created by outsized healthcare job creation for the Trump administration: Because so many of the new jobs in the sector have been driven by the build-out of Obamacare, the president’ promise to abolish this vast new structure could endanger his broader promise to jump-start feeble U.S. economic growth and stagnating incomes.

Even worse, according to Terhune, any effort to make healthcare more affordable, or even keep it at its current affordability levels, will significantly weaken the healthcare job-creation engine.

As the author sees it, healthcare hiring got a major boost “as coverage expanded in 2014 under the [Affordable Care Act] and new federal dollars flowed in. The law gave hospitals, universities and companies even more reason to invest in new facilities and staff. Training programs sprang up to fill the growing job pool. Cities welcomed the development — and the revenue.”

Sharpening the healthcare jobs conundrum faced by the president: “rising health spending has been good for some economically distressed parts of the country, many of which voted for Mr. Trump last year.” And Terhune cites specific examples from West Virginia to Pennsylvania to Ohio and Missouri.

Just as important, the author convincingly shows that American healthcare’s success in creating employment – which clearly predates Obamacare’s passage – also largely explains its inefficiency. In Terhune’s words, because of the system’s

“redundancy, inefficiency and a growing number of jobs far removed from patient care….[l]abor accounts for more than half of the $3.4 trillion spent on American health care, and medical professionals like health aides and nurse practitioners are in high demand. But the sheer complexity of the system has also spawned jobs for legions of data-entry clerks, revenue-cycle analysts and medical billing coders who must decipher arcane rules to mine money from human ills.”

And although Terhune doesn’t make the point explicitly, this labor-intensivity means that the sector of the economy fueling so much of its output and hiring is pathetically unproductive. In other words, the more outsized growth and employment healthcare creates, the less able the entire economy will be to raise living standards on a sustainable basis.

Moreover, one big reason for this low productivity is a feature of the healthcare system – both under Obamacare and before it – not mentioned by Terhune, either, but that’s vital to recognize: As I’ve observed, although this gigantic industry is officially (and no doubt popularly) considered a part of the private sector, its scale owes largely to subsidies from the public sector, which is renowned for low productivity.

As always, RealityChek readers – and others – need to understand that placing healthcare (and similar industries, like the for-profit educational system and social assistance agencies) outside the “real private sector” is not the same as questioning its fundamental value. After all, no truly civilized society would ever reduce public policy to a quest for productivity to the exclusion of all other goals, whether economic or non-economic. Moreover, as some readers have alertly pointed out, the steady aging of the American population is bound to mean continued healthcare sector growth.

But Terhune’s article is a badly needed reminder that the economy’s heavy reliance on the current healthcare system’s employment power has major downsides. As its title indicates, it’s a “costly addiction,” and its price is bound to rise without a major overhaul of some kind.

Im-Politic: Did Trump (and Trump-ism) Really Lose Big in the Healthcare Fight?

Tags

border adjustment tax, Congress, conservatives, Freedom Caucus, healthcare, Im-Politic, Immigration, infrastructure, Obama, Obamacare, Paul Ryan, Peggy Noonan, Republicans, RyanCare, tax reform, Tea Party, The Wall Street Journal, Trade, Trump

The list of realities, considerations, factors – call them what you will – that President Trump either forgot or overlooked as he pushed for House passage of the Republican healthcare bill is long, impressive, and pretty obvious according to the Washington, D.C. conventional political wisdom. On the off chance you haven’t heard it or read it, it includes the difference between cutting deals among real estate tycoons and negotiating with ideological politicians; his own voters’ tendency to rely heavily on the kind of government healthcare aid that the GOP legislation either eliminated or sharply curbed; the powerful vested stake developed after years or working with it in the current healthcare system – however troubled it might be – by major participants in the system; and the dangers to Mr. Trump’s own credibility and political power of choosing to tackle first a highly contentious subject (like healthcare) instead of a priority that’s reasonably uncontroversial (like infrastructure spending).

All those points seem valid to me, but I would add two more that seem at least equally important. Then I’ll present an interpretation of the healthcare story that hasn’t appeared anywhere else yet but that shouldn’t be overlooked – if only because it ties the otherwise puzzling story together in ways that are admittedly byzantine, but that make eminent sense in a Machiavellian (and therefore quintessentially political) way. In fact, this analysis dovetails exceptionally well with the president’s clear (to me, certainly) determination to remake American politics by rejecting the doctrinaire conservatism embodied by the Republican party for decades, and thereby increasing its appeal to independents and moderates.

The first such consideration that should be added to the overlooked list: how much more difficult it is both politically and substantively to take away government assistance used by economically stressed Americans (like those who backed Trump in droves) than it is to enable them to thrive without the assistance via other major planks of the Trump platform – chiefly immigration and trade policy overhaul.

One of the secrets of Trump’s success, after all, was his recognition that vast numbers of working and middle class Americans no longer buy the mainstream Republican argument that they could greatly increase their economic self-reliance through the wealth that would trickle down to them through shrinking taxes and government. He understood that this promise would always ring false as long as so many good jobs and so much income were being sent to foreigners through offshoring-friendly trade policies and mass immigration.

So it’s easy to understand why the Republican healthcare legislation registered so little support from even Republican voters – no doubt including many Trump backers. He seemed to be putting the cart before the horse not when it came to the kinds of government programs touted by liberals that Trump-ites viewed as bupkis, but with a program that had become central to their lives. (For a terrific analysis of Main Street views of healthcare at the usually ignored gut level, see this column by The Wall Street Journal‘s Peggy Noonan.)

The second neglected consideration flows directly from the first: President Trump’s election shows that the Republican party has moved significantly in his more populist and particularly less ideological direction, if not at the interlocking think tank/donors/Congressional level, at the far more important voter level. As a result, there was no apparent reason for Mr. Trump to defer to the more ideological Congressional Republicans on the healthcare front.

More specifically, even though the national party’s leadership did indeed treat Obamacare repeal and replacement as a defining principle and promise to its grassroots, and even though candidate Trump expressed strong opposition to his predecessors’ signature achievement, healthcare was never the defining principle of the maverick movement he led. That’s why he so frequently spoke of achieving healthcare goals that have been so widely rejected in Republican and conservative and leadership circles, like ensuring universal coverage.

So why did the president lead off his legislative agenda with orthodox Republican-style healthcare reform? Here’s where the story gets Machiavellian to me – but in ways that should be entirely plausible to anyone familiar with how successful political strategists think. Further, it’s a narrative that fully takes into account the hyper-partisan nature of Washington and legislative politics with which Mr. Trump needs to deal. And it goes like this.

The president recognizes that even though he’s remade much of the Republican base in his own image on the issues level, he also must realize that the Washington Republicans – which include the party’s mainstream conservative Congressional leaders and its more ideological Tea Party wing – remain hostile on the highest profile matters on his own agenda. I imagine he also recognizes that they might be powerful enough to undermine his initiatives on trade, immigration, and/or infrastructure – especially if Democratic leaders remain in their adamant “resistance” mode.

For even if Democrats are ultimately winnable on trade and infrastructure, they have no interest even in these areas in giving the president the kind of quick victory that would greatly strengthen the odds of turning his first term of office into a success that would boost the odds of his reelection. They have even less interest in helping Mr. Trump further strengthen his appeal to many of big Democratic constituencies.

So the Washington Republicans needed to be at least neutralized – and sooner rather than later. And appearing to fight the good fight for their healthcare reform proposal was an ideal way to demonstrate his loyalty to their objectives and strengthen his case for demanding concessions from them in return in areas he valued much more highly. This calculation looks especially shrewd since the Republican bill was so draconian that even had it squeezed through the House, the Senate was bound to prevent its reaching his desk in anything like its current form.

As a result, now that the “RyanCare” legislation is dead, Mr. Trump can say to both the House Republican leaders and even to the hard-line Freedom Caucus something to the effect, “We tried it your way, I carried lots of your water, and I paid a noticeable price. Now we drop the healthcare effort, pivot to my priorities, and I expect your votes, even if you won’t pull front-line duty. And when we do address healthcare as Obamacare’s failures multiply, you’re going to do right by your own constituents and drop the free market extremism. P.S. Anyone remaining obstructionist comes into my social media cross-hairs with your reelection bids coming up.”

I have no inside information here, and my reasoning could certainly be too clever by half. Moreover, one of the most important lessons I’ve learned in my professional life is that just because an analysis seems logical or commonsensical, doesn’t mean that it’s true. But even though it’s only about a day since the healthcare bill was pulled from a scheduled floor vote for the second and final time, I derive some satisfaction in seeing the president is making nice with both House Speaker Paul Ryan and the Freedom Caucus members, and making clear that it’s tax reform time (which could bring a tariff-like border adjustment tax). Which could mean that Donald Trump’s presidency is highly conventional in at least one respect – temptations to dismiss it as a failure should be strongly resisted.  

Im-Politic: Americans are Far from Bitterly Divided on Everything

Tags

Affordable Care Act, border wall, climate change, criminal illegal immigrants, Democrats, deportations, Gallup, illegal immigration, Im-Politic, infrastructure, Mexico, Obamacare, polls, regulations, Republicans, tariffs, taxes, TPP, Trade, Trans-Pacific Partnership, United Nations

America today is deeply divided on the new Trump presidency and many substantive issues. But the message sent by a new Gallup poll is that there’s considerable consensus when it comes to identifying the nation’s major challenges. And although polls have recently gotten a deserved black eye over their election performance, this fundamental finding tracks intriguingly with that reported (by a different organization) that I wrote about a little over a year ago.

Gallup sought Americans’ views on which of President Trump’s campaign promises they believe that it’s “very important” for him to keep. Here are the top four – which were also the only choices that topped 50 percent:

>”Enact a major spending program to strengthen infrastructure” 69 percent

>”Reduce income taxes for all Americans” 54 percent

>”Establish tariffs on foreign imports” 51 percent

>”Deport the more than 2 million illegal immigrants who have

    committed crimes” 51 percent

At least as interesting, three of these four stated Trump priorities enjoy strong bipartisan support:

>infrastructure: 68 percent of Democrats, 71 percent of Republicans

>tax cuts: 46 percent of Democrats, 62 percent of Republicans

>tariffs: 45 percent of Democrats, 62 percent of Republicans

The exception – interestingly – is

>deport criminal illegal immigrants: 33 percent of Democrats, 70 percent of         Republicans

Now here are the Trump priorities that Gallup found Americans regard as least important (note – which does mean that they oppose them):

>”Cancel billions in payments to UN climate change program” 30 percent

>”Withdraw from the Trans-Pacific Partnership” 26 percent

>”Build a wall along the border with Mexico” 26 percent

>”Require that for each new federal regulation, two must be

    eliminated” 23 percent

Just FYI, the administration has already announced officially that it’s pulling out of the Pacific trade deal.

And guess what? There’s a great deal of bipartisan consensus on the relative unimportance of these matters, too:

>UN climate change payments: 23 percent of Democrats, 38 percent of Republicans

>Trans-Pacific Partnership: 19 percent of Democrats, 32 percent of Republicans

>border wall: 12 percent of Democrats, 38 percent of Republicans

>regulations: 14 percent of Democrats, 31 percent of Republicans

Finally, I couldn’t help but notice that the most divisive Trump priorities, according to Gallup, are the aforementioned deportations of criminal illegal immigrants and…repealing Obamacare. A total of 46 percent of Americans told Gallup this move was “very important,” but although 68 percent of Republicans were on board with scrapping the Affordable Care Act quickly, only 26 percent of Democrats agreed.

I know that the president has his own pollsters – and of course his own opinions. But I wouldn’t be entirely surprised if their list of top White House priorities didn’t wasn’t very similar to those identified by Gallup as the public’s. Nor would I be surprised if achieving these goals – and softpedaling many of the others – made for a great first 100 days.

Im-Politic: The Trump Voters Who Want Work, not Welfare

Tags

coal country, Dante Chinni, Democrats, dignity of work, family leave, Im-Politics, Immigration, Jobs, Mainstream Media, minimum wage, Obama, Obamacare, The Wall Street Journal, Trade, Trump, wages, welfare

There’s no doubt that “Aha!” articles need to occupy a prominent place in journalism. This is especially true when they reveal important gaps between the claims of politicians and other major public figures on the one hand, and incontestable reality on the other.

At the same time, “Aha!” journalism can contain fatal flaws even when it’s superficially accurate. As illustrated by a Wall Street Journal article published yesterday, the problems can become serious when the Mainstream Media and others in America’s chattering classes try to figure out what’s going among those American voters who supported President-elect Trump.

Since I’m not a mind-reader, I of course can’t know reporter Dante Chinni’s exact motive in presenting the evidence that Trump voters look to be among the biggest losers if the president-elect keeps his campaign promise to repeal President Obama’s healthcare reforms. But it’s certainly got major – and legitimate – “Aha!” overtones. What could be easier to imagine than Democrats and other assorted liberals and progressives making political hay out of the idea that Mr. Trump will wind up shafting his own backers big-time. Indeed, that’s already begun.

Nonetheless, there’s a big part of this picture that pieces like this miss (regardless of how much or how little of Obamacare the next administration tries to keep). As the Journal article makes clear, Trump voters appear certain to take a painful Obamacare hit because so many live in parts of the country that have been devastated by trends like technological advance, offshoring-friendly trade deals, and the demise of the coal industry. Where lost jobs haven’t resulted, wages have fallen significantly. Of course, these setbacks go far toward explaining why they were Trump voters to begin with!

But there’s a clear implication at work here: that, in fact, those Trump voters should have backed Democratic presidential nominee, and Democratic or otherwise liberal members of Congress, because they’d have surely kept the very important benefit of adequate, free or much lower cost medical coverage.

This conclusion makes perfect sense from the standpoint of typically well heeled, thoroughly urbanized members of the nation’s media, political, and policy establishments. Business leaders who view themselves as progressives surely agree. But it makes no sense from the standpoint of economically pressed Trump voters – who as should now be screamingly obvious, live worlds apart from these elites.

For many of these folks remember the days when they didn’t need Obamacare to prop up their living standards or prevent their descent into near-poverty or outright destitution. They also remember the days when they were able to own a home by financing it responsibly, take a respectable vacation, buy a new car, provide for their children the college education they may have lacked, and retire securely – all without minimum wage hikes, without paid family leave, and without subsidized healthcare during their working lives, and without any of the other actual and prospective palliatives offered by the public sector, whether adequate or not.

In other words, they remember the days when they and/or their spouse held good-paying and reasonably secure jobs, and they reject the idea that any forms of welfare – even all added up together – amount to acceptable compensation. And they resent the dole especially vehemently if they believe, rightly or wrongly, that their livelihoods disappeared or turned into dead-end jobs because of entirely avoidable political decisions – especially on the trade and immigration fronts.

The point here is not that Obamacare and other government supports are bad or unnecessary. The point is that Trump voters (and of course many others) believe in “the dignity of work” – not in the formal Catholic sense, but in the informal, everyday sense. And they want to see more politicians taking this idea seriously, instead of giving it lip service.

Im-Politic: A Preview of Trump-ism without Trump?

Tags

2016 election, amnesty, attrition, Contract for the American Voter, Democrats, deportation, Donald Trump, entitlements, establishment, healthcare, Im-Politic, Immigration, immigration magnet, independents, Jobs, NAFTA, Obamacare, Peggy Noonan, politics, Populism, Republicans, TPP, Trade, Trans-Pacific Partnership, Wall Street Journal

Throughout this circus of a presidential campaign, I’ve emphasized the importance of distinguishing between Donald Trump’s myriad personal failings and the Republican presidential nominee’s campaign positions – which I remain convinced can form the basis of an urgently needed, sensible, and therefore, enduring new American populism. This week, substantial support for this proposition has come from Wall Street Journal columnist Peggy Noonan and, more surprisingly, from Trump himself.

In an October 20 essay, Noonan – long one of the most effective critics of the corporate-funded Republican establishment that Trump thoroughly trounced during the primaries – described the pillars of “Trump-ism without Trump” with her usual wit and grace. Among the highlights:

>He “would have spoken at great and compelling length of how the huge, complicated trade agreements created the past quarter-century can be improved upon with an eye to helping the American worker”:

>He “would have argued that controlling entitlement spending is a necessary thing but not, in fact, this moment’s priority. People have been battered since the crash, in many ways, and nothing feels stable now”:

>And he “would have known of America’s hidden fractures, and would have insisted that a healthy moderate-populist movement cannot begin as or devolve into a nationalist, identity-politics movement.”

The only matter on which I believe Noonan is seriously off-base is immigration. I certainly agree with her that Trump should have “explained his immigration proposals with a kind of loving logic—we must secure our borders for a host of serious reasons, and here they are. But we are grateful for our legal immigrants….” The problem is with her apparent belief that “In time, after we’ve fully secured our borders and the air of emergency is gone, we will turn to regularizing the situation of everyone here….”

As I’ve written, this popular (with both wings of the establishment) version of amnesty inevitably will supercharge America’s “immigration magnet.” The perceived likelihood of eventual legalization can only bring millions more impoverished third world-ers to the nation’s various doorsteps. It’s inconceivable that even a President Trump would take the measures needed – which would surely involve some use of force – to keep these masses, and especially the women and children, at bay.

The far better, indeed only realistic, approach is one that Trump himself has unfortunately barely mentioned: a stout refusal to legalize in any form accompanied by a strategy of attrition – i.e., encouraging illegals to leave both by boosting efforts to keep them out of the workplace, and by denying them (and their anchor children) public benefits.

But it’s almost like Trump was listening. Two days later, he came out with a “Contract for the American Voter” that echoed much of Noonan’s column. He promised that in his first hundred days in office, he would announce his “intention to renegotiate NAFTA or withdraw from the deal,” along with withdrawal from the Trans-Pacific Partnership (TPP) trade deal. Both measures should draw strong support from Democrats and independents. In addition, Trump would designate China a currency manipulator, and order an inventory of predatory foreign trade practices.

On immigration, he omitted any reference to blanket deportation of all illegals and instead focused on starting to remove “the more than 2 million criminal illegal immigrants from the country and cancel visas to foreign countries that won’t take them back”; to de-fund Sanctuary Cities; and to “suspend immigration from terror-prone regions where vetting cannot safely occur. All vetting of people coming into our country will be considered extreme vetting.” Especially in the political climate that would result from a Trump victory, would most Democrats on Capitol Hill fall on their swords to prevent any of this?

And what did Trump vow re entitlement reforms? The phrase doesn’t appear at all in the Contract, although the list of legislative proposals does include the repeal of Obamacare and replacement with a system (described only generally, to be sure) that could well appeal to most Republicans and many independents, and that in combination with other measures mentioned could bend the national healthcare cost curve down further.

Couple these ideas with Trump’s support for a big infrastructure build-out and repair program; his broadly non-interventionist foreign policy stance combined with a big (job-creating) defense buildup; new government ethics reforms that seek to halt the corrupting revolving door between government and private sector; and any kind of serious middle class tax relief, and it looks to me like a (mandate-sized) winning formula – for a politician who can pass the interlocking personality, character, and temperament tests.

Can such leaders emerge from the current political system, as I recently asked? Are American politicians who rise up through this system simply too beholden to special interests, or too thoroughly imbued with the “If you want to get along go along” ethos to favor rocking any big boats? I still can’t say I know the answer. But I’m as confident as ever that unless and until this kind of candidate emerges, American politics is going to remain one very angry space.

Im-Politic: Sadly Poetic Justice for California Open Borders Enthusiasts

Tags

ACA, Affordable Care Act, border security, California, Disney, H1B, illegal immigrants, illegal immigration, Im-Politic, Immigration, Norman Matloff, Obamacare, Open Borders, San Francisco, Sanctuary Cities, tech workers, University of California

As I’ve mentioned previously, computer scientist Norman Matloff is a great source of information and analysis on immigration issues – and especially on the visa system that lets businesses replace high paid domestic tech workers with low-paid foreigners. Late last week, the University of California-Davis professor once again showed his chops. Thanks to him, I learned about a stunning instance of poetic justice for a leading national center of Open Borders policies and enthusiasm.

Surely everyone knows by now that, as a municipality, San Francisco is proud to be one of America’s most ardent cheerleaders and enablers of dangerously permissive immigration policies. Its sanctuary city status directly resulted in the murder of a young woman by an illegal immigrant criminal that it released from custody rather than comply with an extradition request from the federal government. And of course the entire Bay Area’s zeitgeist is strongly influenced by the Silicon Valley tech companies whose profits depend heavily on continually driving down labor costs by hiring relatively young and extremely cheap immigrant programmers and the like and getting rid of older, more expensive native-born employees.

In addition, these descriptions also apply to the entire state of California – which has been charged with moving ever closer to become a full-fledged sanctuary jurisdiction.

So although it’s always unfortunate when someone loses a job, some smirking is surely understandable in response to the news – summarized in this September 8 post by Matloff – that the University of California’s San Francisco branch is pink-slipping 80 of its tech workers and some of the vacant positions will be filled with H1Bs supplied by an Indian outsourcing company. Worse, at least some of the cashiered employees at this public university believe they will need to train their imported replacements – as with a widely publicized case involving the Disney Corporation two years ago.

As made clear in this comprehensive account, the university’s decision could well spread throughout its numerous branches and potentially affect thousands of tech workers. And as Matloff explains, these government tech workers

“are highly sophisticated, aggressive people who know how to pull strings. It becomes especially important in light of UC’s generous defined-benefit pension plan. If someone has worked, say 10 years, at UCSF and had planned to work 25, they are having enormous future pension sums snatched away from them. So it’s real money” they’ll be losing.

A final point worth considering. According to the executive in charge of information technology services at the University of California-San Francisco:

“the campus is facing ‘difficult circumstances’ because of declining reimbursement and the impact of the Affordable Healthcare Act, which has increased the volume of patients but limits reimbursement to around 55 cents on the dollar….”

California, of course, is a major Democratic Party stronghold, in part because its (immigrant happy) public employee unions are so enormous and so powerful. I wonder how many more state university workers will be replaced by immigrants – and how long it will take the broader state government to adopt these practices – before the Golden State’s politics begin to change.