Trumpton and Mayhem 2*: Trump – like May – takes care of the rich, not the rust belt
In a recent post on this site, economist Martin Wolf (FT) was quoted, reminding readers of the words of Theresa May, the prime minister, in her speech to the Conservative party conference last year: “Our economy should work for everyone, but if your pay has stagnated for several years in a row and fixed items of spending keep going up, it doesn’t feel like it’s working for you.” She earnestly promised that this would change.
He continued: “Was Mrs May’s speech hypocritical? Yes”. (See MP Dawn Butler, 2nd paragraph)
In similar vein, Jenni Russell writes:
“The president’s actions are more important than his words, and they are a betrayal of his voters
“President Trump is brilliant at diversionary tactics, whether tweets, tantrums, or executive orders that may or may not mean anything in practical terms. His speech to Congress was another in his string of conjuror’s illusions.
“Breitbart and the Trump base adored it for its promises to put American workers first, improve their healthcare, incomes and education, cut their taxes, and protect them from danger abroad and immigrants at home. Trump’s liberal critics were momentarily dazzled to find that for at least an hour the president was capable of addressing the nation in a reasonable, conciliatory tone. But we now know that Trump’s public promises and assertions are so full of contradictions that they cannot be taken either literally or seriously.
“Instead we have to scrutinise the practical consequences of the policies his team is implementing. The effect of these won’t be to transform the lives of the people he swore to champion. They will make the rich much richer at the expense of the middle class and the poor”.
She notes that Trump’s tax plan is overwhelmingly skewed towards the wealthy:
- America’s Tax Policy Centre shows nearly half of the total tax cut will go to the top 1% of taxpayers.
- Almost a quarter will be spent on the richest 0.1%, households that earn above $3.7 million a year.
- The middle fifth of households, earning an average of $65,000, will gain just a thousand dollars.
- Less than 7% of the total cost of tax cuts will be spent on them.
- Because Trump intends to drop tax exemptions for children, some families earning less than $50,000 a year will actually see their taxes rise.
- The budgets for education, childcare and medical research will be slashed by at least 15% per cent.
- Trump proposes to end the state tax, which affects only the top 0.2 per cent of the population.
- His proposed cuts to corporation tax range from 35 to 20%
This surreptitious transfer cannot be what Trump supporters expected
Jenni continues: “Trump’s promise to create jobs through a vast infrastructure plan are equally tilted towards the rich. Investors will be offered tax breaks costing $137 billion to encourage them to invest a trillion dollars in projects that offer potential returns from fees or tolls. And far from bringing jobs to depressed regions, the projects will be skewed towards wealthier areas, because there will be no incentive to invest in areas where there’s no hope of a financial return, like the crumbling roads of the Appalachians”.
Still justified by demonstrably failed trickle down theory
Republicans defend this kind of unbalanced reward as they always have, arguing that the more money individuals keep, the more they will spend and the more everyone will benefit. These policies – in addition to the cuts Trump is demanding to pay for his boom in defence spending – will add huge sums to the deficit and drastically shrink the money available for public programmes. Jenni ends:
“Trump promised to protect his voters but the gulf between what he pledged and what he’s delivering is evident everywhere. His teams are busy dismantling consumer, financial and environmental regulations that prevented ordinary people being fleeced or having their land and water defiled. His supporters stubbornly believe in him but they are being betrayed. There can only be more fear and disillusion to come”.
Meanwhile Wall Street is soaring in anticipation, with the Dow Jones breaking the 21,000 barrier for the first time within hours of the speech. That extra money will overwhelmingly go into the bank accounts of those with the most shares – and the May government now turns from squeezing the disabled to the bereaved, successfully passing drastic cuts in payments for which national insurance contributions had been made and raising probate fees.
*Trumpton and Mayhem: first passing reference made on Our Birmingham website by architect David Heslop, moving towards employee ownership.
Posted on March 19, 2017, in Arms trade, Corporate political nexus, Defence, Economy, Finance, Foreign policy, Government, Inequality, Military matters, MPs, Politics, Poverty, Vested interests and tagged Donald Trump, Dow Jones, Martin Wolf, Theresa May, Wall Street.. Bookmark the permalink. Leave a comment.