The Republican Party has always defended the values of free enterprise and free trade. The ideological foundation of the party holds that the separation of economy and state are necessary to ensure freedom and prosperity. Yet Donald Trump, enjoying around 41% support nationally in the GOP primary, has shown a complete hostility towards the ideas of economic freedom; making those of us who are following such things wonder if he’s in the wrong party….
Here are 5 positions which demonstrate Trump’s contempt for free markets.
1. Protectionism
If you were to sum up Trump’s economic plan in one word it would undoubtedly be “protectionist.” Trump wants to use the power of the federal government to limit trade and steer commerce in a direction he feels is beneficial. Trump has declared that he would seek to stop Ford Motor Company from building a Mexican plant, threatening a 35% tariff on foreign imported cars.
This is a man who calls Bernie Sanders a communist yet wants the president of the United States to bully private businesses. Ironic, to say the least.
The Washington Post writes:
Such a tariff would violate the North American Free Trade Agreement, which, like it or not, is the law of the land — not to mention the Constitution, unless Trump is relying on some little-known codicil that empowers the president, not Congress, to levy tariffs.
Never mind all that: Trump’s idea would be terrible even if feasible. For reasons familiar to all Economics 101 students, blunt-force protectionismdestroys jobs, probably many more than it “saves.”
In the simplest terms, Trump’s approach amounts to an increase in the regulatory and tax burden on U.S.-based businesses. Other things being equal, the heavier that burden, the less likely businesses would be to invest in the United States, and the fewer jobs would be created.
Investors might get especially skittish if policy can change at the whim of a White House wheeler-dealer who relishes dissing CEOs by phone — and who told Fox News’s Chris Wallace on Sunday that, in negotiations, “I want to be unpredictable, because, you know, we need unpredictability. Everything is so predictable with our country.” So much for a stable business climate.
Perhaps, cowed by Trump, Ford would keep its old plant in Michigan. But it would darn sure think twice about building the next one there, knowing that ultimate control belonged to the Trump regime. Come to think of it, the safest bet for Ford, and others, would be to build all plants in Mexico — or pretty much any other country that appreciates free enterprise.
2. Eminent Domain
Donald Trump has no problem using the power of the state to steal people’s property from them.
The National Review documents Trump’s use of eminent domain:
In a free market, there’s a pretty simple process for dealing with the situation that arises when one person covets another’s belongings: The coveter makes an offer to purchase them. If the offer is rebuffed, the coveter can make a new proposal, but he cannot simply take what he wants. It’s an effective way of recognizing the impracticality of the Tenth Commandment while enforcing the Eighth. Donald Trump’s covetous nature is not in dispute, but what many may forget is that he’s no great respecter of the admonition not to steal, either: The man has a track record of using the government as a hired thug to take other people’s property…
…A decade and a half ago, it was fresh on everyone’s mind that Donald Trump is one of the leading users of this form of state-sanctioned thievery. It was all over the news. In perhaps the most-remembered example, John Stossel got the toupéed one to sputter about how, if he wasn’t allowed to steal an elderly widow’s house to expand an Atlantic City casino, the government would get less tax money, and seniors like her would get less “this and that.” Today, however, it takes a push from the Club for Growth to remind us of Trump’s lack of respect for property rights.
3. Single Payer Healthcare
If there is one thing Republicans have rallied against during Obama’s tenure, it’s the intrusion into healthcare markets by the government. The party traditionally opposes a socialized system for good reason; socialized systems lead to shortages of resources, diminished access and quality of care, and rising costs. Republicans know that we need less government in healthcare– not more.
Yet Donald Trump has advocated for more government involvement. Several times he has advocated for a single payer system prior to running for president. Even during the campaign, Trump has defended the notion of socialist healthcare, stating it “works” in Scotland and Canada.
Even after walking back support for single payer, Trump has advocated for government solutions. He even hinted at universal government healthcare coverage in a recent 60 Minutes interview.
“I am going to take care of everybody. I don’t care if it costs me votes or not. Everybody’s going to be taken care of much better than they’re taken care of now.”
Government taking care of us by interfering with private healthcare markets and providers. Again, sounds awfully like Bernie Sanders…
In case this isn’t clear, here is the rest of the exchange. Look who Trump says is going to pay for this:
Scott Pelley: The uninsured person is going to be taken care of. How? How?
Donald Trump: They’re going to be taken care of. I would make a deal with existing hospitals to take care of people. And, you know what, if this is probably–
Scott Pelley: Make a deal? Who pays for it?
Donald Trump: –the government’s gonna pay for it. But we’re going to save so much money on the other side. But for the most it’s going to be a private plan and people are going to be able to go out and negotiate great plans with lots of different competition with lots of competitors with great companies and they can have their doctors, they can have plans, they can have everything.
4. Tax the Rich
In the same 60 Minutes interview, Trump said one way which government would pay for new expenses (like universal healthcare) was by taxing the wealthy.
Scott Pelley: Revolution is easy, governing is hard and what I’d like to get to is how you intend to govern the country if you are elected president. What’s your tax plan?
Donald Trump: It’s a substantial reduction for the middle-income people. Because our middle class, Scott, is being absolutely decimated. It will be a corporate also reduction, I think it’ll be a great incentive for corporations.
Scott Pelley: Who are you going to raise taxes on?
Donald Trump: If you look at actually raise, some very wealthy are going to be raised. Some people that are getting unfair deductions are going to be raised. But overall it’s going to be a tremendous incentive to grow the economy and we’re going to take in the same or more money. And I think we’re going to have something that’s going to be spectacular.
Scott Pelley: But Republicans don’t raise taxes.
Donald Trump: Well, we’re not raising taxes.
Scott Pelley: What kind of Republican are you?
Donald Trump: I mean the only, well, I’m a pretty good Republican. But, I will tell you this, I do have some differences. I don’t want to have certain people on Wall Street getting away with paying no tax.
Here, Trump sounds like a Democrat recycling old liberal talking points. It’s rhetoric couched in equality which really just translates to higher taxes.
5. Opposition to Free Trade
Republicans value free trade for the jobs it creates as well as the way it fosters economic growth, cooperation, and innovation. Donald Trump wants to place tariffs on foreign goods and is opposed to free trade agreements which benefit the US economy.
The National Review writes:
A great deal of Donald Trump’s silly and illiterate trade talk presupposes the gutting or repeal of NAFTA, the trade accord between the United States, Canada, and Mexico that went into effect in 1994, with his dreams of punitive sanctions and blockades. Indeed, NAFTA is a favorite whipping boy for populists Left and Right, a reminder that populist conservatives have much more in common with populist progressives such as Senator Bernie Sanders than they do with the political tendency that connects Adam Smith to F. A. Hayek and Ronald Reagan.
The author goes on to detail the facts about NAFTA:
U.S. manufacturing has not been undermined by NAFTA. In real (inflation-adjusted) terms, U.S. manufacturing output today is about 68 percent higher than it was before NAFTA came into effect. Real manufacturing output today is nearly twice what it was in 1987, when NAFTA’s predecessor, the Canada–U.S. Free Trade Agreement, was negotiated. Manufacturing output per man-hour has skyrocketed as investments in information technology and automation pay off, which is the main reason a smaller share of the work force is employed in manufacturing even as output continues its steady climb. Fewer people work in our factories today because we’ve gotten better at running them.
Trump also embarrassed himself by grandstanding against the Trans Pacific Partnership agreement because he felt it benefited China too much– even though China is not part of the TPP.
6. Wage Controls
It’s hard to keep track of whether Trump thinks wages are too low or too high in this country, as he has espoused both positions depending on which way the wind is blowing. One thing is for sure, he is convinced the answer is government. Again, Trump fails to understand an essential function of free markets and prefers to use the government to centrally plan major parts of the economy. We have many words for such a person: leftist, socialist, central planner, or progressive. We do not call them Republicans.