Is Anything Besides Impeachment Going On?

The Daily Escape:

Sunrise, Churchill, Manitoba, Canada – October 2019 photo by Colin Hessel. Hat tip to blog reader Marguerite S.

While America is focused on our impeachment gridlock, we’ve missed a few things Trump has done that have far-reaching impact.

First, the US solar industry has lost 62,000 new jobs and $19 Billion in investments because of Trump’s two year-old tariffs on imported solar panels. The job loss is more than the 53,000 total number of workers employed in US coal mining, an industry Trump favors. Maybe those 62,000 people can just apply for the roughly 250 new coal mining jobs Trump created. The $19 billion in lost investment equates to 10.5 gigawatts in lost solar energy installations, enough to power about 1.8 million homes.

Despite the tariffs, global solar panel prices have continued to fall due to oversupply in China, but US solar panel prices still are among the highest in the world. That makes it more difficult for solar to compete with other forms of electricity generation such as natural gas.

Trump’s tariffs have had the greatest impact on newer solar markets such as Alabama, the Dakotas and Kansas, because they make solar uncompetitive.

Second, Trump announced revisions to the small arms export rules. The National Defense Authorization Act (NDAA) is currently in reconciliation negotiations. One of the differences between the House and Senate versions is an amendment that could loosen export controls on firearms. In November, the administration gave Congress notification of the proposed rule changes, which will go into effect on December 20th if Congress does not block it.

The US exports firearms and related technology on a large scale. From 2013 to 2017, the State Department reviewed approximately 69,000 commercial export license applications for firearms, artillery and ammunition reported at a value of $7.5 billion. Roughly two-thirds of these applications were for firearms.

Trump’s proposal would transfer control over the export of firearms and related technology from the State Department to the Commerce Department. The new rules could loosen the global trade in small arms, particularly in Latin America and the Middle East.

Export control is a complicated process with substantial paperwork designed to limit weapons or components falling into the wrong hands. The State Department currently manages this process for firearms. Moving control to the Commerce Department means that exports of these weapons will be subject to a less rigorous approval process.

Many observers, including the UN, have noted that the widespread availability of small arms is a “key enabler” of conflicts around the world. Despite calls for states to exercise tighter arm controls, the Trump administration is proposing to do just the opposite.

There are downstream effects of the proposal. It may make it easier for Latin American organized crime or terrorists in the Middle East to get guns and ammo more easily. Perhaps Trump wants to improve the Second Amendment rights of ME terrorists and Latin American gangs. Or maybe, he’s just in the tank for US gun manufacturers.

Third, a new Pew survey finds that only half of American adults think colleges and universities are having a positive effect on the country; 38% say they are having a negative impact, up from 26% in 2012. The increase in negative views has come almost entirely from Republicans and independents who lean Republican:

Since Trump was elected, Republicans who say colleges have a negative effect on the country went from 37% to 59%. Over that same period, the views of Democrats and independents who lean Democratic have remained stable, and overwhelmingly positive.

Democrats who see problems with the higher education system cite rising costs most often (92%), while 79% of Republicans say professors bringing their political and social views into the classroom is a major reason why the higher education system is headed in the wrong direction. Age is an important factor: 96% of Republicans aged 65+ say professors bringing their views into the classroom is the major reason why higher education is headed in the wrong direction.

Higher education faces a host of challenges in the future: Controlling costs, ensuring that graduates are prepared for the jobs of the future, and responding to the country’s changing demographics.

Trump and the GOP’s willingness to see everything from impeachment, to solar panels, to college education as an ideological battle are making addressing America’s problems impossible.

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Why Trump Doesn’t Talk About Jobs Anymore

The Daily Escape:

(Bamboo after snowfall in January, near Kyoto. Photo by Hiroki Kondo)

During the 2016 presidential race, Trump campaigned on populist themes. Now that he is in office, it is clear that his policies will be neither populist nor popular, but strictly pro-business. The first clue was his choice of Cabinet members. Despite promising to “drain the swamp”, nobody realized that he could do that by making lobbyists pointless, as their clients are in charge of the government: The CEO of Exxon is head of foreign policy, a former Goldman Sachs partner heads Treasury, the daughter of a ship owner heads Transportation, a corporate raider is at Commerce, and so it goes.

Two months into his presidency, it is clear that the Trump economic policy is pro-business, not pro-jobs, or pro-little guy. If you still have doubt, the Republicans just rolled back a series of Obama-era worker safety regulations. The Senate voted 49-48 to kill a rule that required federal contractors to disclose and correct serious safety violations.

It’s clear that industry CEOs can’t believe their good luck, despite having opposed Trump at every step before the election. He’s only asking them for some vague promises to add new American jobs in return. Acting normal when they are interviewed after leaving a Trump meeting must be the hardest part of their day.

Trump hardly mentions jobs anymore, because he knows there aren’t many. His bogey man of weak domestic manufacturing needs to be addressed: China’s total exports in 2015 were $2.3 Trillion. The US total exports in 2015 were $1.5 Trillion, second in the world.

And the total value of US manufacturing in 2015 was $6.2 Trillion and we are doing it with fewer people than ever before. Today, US factories produce twice as much stuff as they did in 1984, but with one-third fewer workers.

Trump’s carrot and stick approach with US companies is theater. He is now industry’s number one value creator: When he commended Ford for deciding not to build a new plant in Mexico, the price of its shares rose 4.5%.

Softbank shares went up 6.2% after being praised by Trump for investing $50 billion in the US. Softbank’s motive was simple: Softbank owns Sprint, who would like to merge with T-Mobile. The authority to permit this merger lies with the new head of the FTC, yet to be named by Trump. Trump’s positive tweets feed Softbank’s hopes that the merger will be approved.

The Trump presidency has begun in the worst possible way for all who believed he would be an activist in new jobs creation for the lightly skilled, the people who overwhelmingly helped to elect him.

If the opposition wants to take Trump down, they should stop talking about Russia, and focus on Trump’s record with jobs creation. He made big promises – a job for everyone. It will be a long time (if ever) before a significant number of new manufacturing jobs materialize. This is true because Trump’s plan is to cut the fat out of government, cutting so many jobs that he might never add enough to make up for those he eliminates.

His plan is to use the freed-up funds to do something splashy with infrastructure. This would allow him to boast significant job creation, while downplaying the lost jobs in government. If Trump can figure out how to take unemployed, 50+ year old white males living in small town West Virginia, and make them productive, employed workers, then he’s a genius.

Capitalism hasn’t changed. A subset of oligarchs led by Trump have seized control of the US government. They are “nationalists”. Another subset, the “globalists” lost control of the state.

OTOH, the American people would have lost regardless of who won.

This is being repeated around the industrialized world, from Brexit, to Marine Le Pen’s right-wing challenge in France, to far right challenges to Angela Merkel in Germany.

The chaos described in Naomi Klein’s Shock Doctrine: The Rise of Disaster Capitalism is engulfing the world.

In honor of those who still believe that Trumpy will solve the jobs equation, here is Alan Jackson with “Hard Hat and a Hammer”:

Those who read the Wrongologist in email can view the video here.

Sample Lyrics:

Lace-up boots and faded jeans
A homemade sandwich, and a half a jug of tea
Average Joe, average pay
Same ol’ end, same ol’ day

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