Primer: Trump is a corporate puppet
President-elect Donald Trump is forming his cabinet, and Republicans have officially won both the House and Senate. Winning every swing state and both chambers has emboldened Republicans who are claiming an electoral mandate, and the focus is now on what policies and actions the incoming administration will first focus on. In the background has loomed Elon Musk, who is the richest man in the world, has spent the last week at Trump’s side, and is helping lead a new Department of Government Efficiency. This brings us to this week’s resolution: Donald Trump is a puppet for corporate interests.
Trump’s connection to corporate America is clear. He has close relations with Elon Musk and appears to have tasked him with cutting regulations that are harmful to business. His only significant legislative achievement from his first term was a tax law that saw a drop in rates for our biggest corporations to 12.8% from 22%. Business seems to prefer his soft hand, as the Dow soared after his election thanks to the belief that greater corporate profits will naturally follow. He initially endorsed a ban on TikTok, but after the business community opposed the position, he flipped and now supports the app. Trump is an erratic leader, but the only thing that is consistent about him is his support for big business.
Trump’s policies, though, can hurt corporate interests, so he cannot be labeled a puppet. Deporting millions of people, arguably the centerpiece of Trump’s winning campaign, will dramatically cut the labor force. While this might mean companies can cut wages, it will definitely make it harder to find important low-skilled workers. Tariffs, the economic policy that Trump has promoted, will hurt the business community as well. Corporations will eat some amount of the tax while also passing some on to the consumer, hurting both profits and their standing with consumers. Tariffs will encroach on the free market and support unproductive industries, which does not help corporations in the long term. Further, the independence of the Federal Reserve is important for smart regulation of the economy, but Trump has undermined it repeatedly. His tax cuts may help corporate interests in the short term, but rising deficits will contribute to a crowding out effect that will drive up borrowing costs for companies. His cuts to the bureaucracy will also restrict the government’s role in research and development, which is key to drive corporate growth and productivity. A President with so many policies adverse to corporate interests cannot be labeled a puppet.
Come join us for our debate this Monday at 7pm in Scott Hall 201!
"Photo of the Day: December 21, 2017" by The White House is marked with Public Domain Mark 1.0.