Tuesday, March 13, 2018

Republican Party has exhausted ideological theme of 'free markets' it has ridden since about 1980. Enter economic nationalism and Donald Trump to give the Republican Party a reason to exist-Sept. 2015, Ian Fletcher

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Donor class "interpretation of "free" markets is "government won't interfere with private distortions of markets in my favor.""

Sept. 2015 article:

"The Republican party has essentially exhausted the two ideological themes it has ridden on since about 1980-- free markets and social conservatism--and needs new ones to survive."

9/30/2015, "Donald Trump Is Trying to Save the Republican Party From Itself," Ian Fletcher, Huffington Post


"I'm neither endorsing nor condemning Mr. Trump, but I do think he's trying to save the Republican party from itself in a very rational way. The last thing he is is a clown or dilettante. (OK, maybe a clown.) 

Why? Because the Republican party has essentially exhausted the two ideological themes it has ridden on since about 1980-- free markets and social conservatism -- and needs new ones to survive.
   
Any ideologues out there, I'm sorry: American history makes quite clear that partisan ideological themes don't last forever, in either party. They're good for a few decades, then they evolve or get dumped...

First, consider the exhaustion of free-market ideology. This doesn't mean that free markets per se, which obviously have enormous validity, are dead as an idea. But it does mean that pushing even further in the direction of free markets is dead as an idea.
   
Why? Most obviously, the 2008 financial crisis, whose effects we're still dealing with, was an effect of markets allowed to run amok, not of markets being insufficiently free. (Yes, I know you can blame it all on the government, but that's a tendentious "reality is the opposite of what you see" argument.)

There's a happy medium between too much and too little regulation, and we've basically reached the limit of our ability to improve our economy by deregulating further. 
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In public perception, this wasn't always the case. It certainly wasn't in 1980, when Ronald Reagan rode this theme to victory. And argue the timing if you like, but surely the reader recalls the romanticism about markets of the late 1990s? Remember California deregulating its electricity market in 1996? (Which handed control over to Enron, by the way, and led to blackouts in Silicon Valley.) 
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So "Even freer markets!" has lost its credibility as an ideological theme. If you disagree, then what industries would you now propose to deregulate, and how do you think that would improve things?

The increased public interest in economic equality is also playing a role here. There are conservative policies that reduce inequality, but they're old-school paternalist conservative policies, not free-market conservative policies. (Some people will tell you that "conservative" simply equals "free market," but this is simply ignorant of history, though I don't have the space to elaborate here.)

Social conservatism is a more complicated topic, but in a country where both public opinion and the Supreme Court support, to take the obvious example, gay marriage, it doesn't look like a net electoral winner from now on...  

So what's the Republican party to do? Luckily, there are other right-wing themes out there to be had, though not an infinite number of truly big ones, substantial enough and popular enough to float a national political party on.
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Enter nationalism. Specifically, economic nationalism, because the economy is what voters care about most. Mr. Trump's protectionism is a form of economic nationalism. So is his stance against immigration. (Again, I take no position on the merits, but anti-immigrationism is definitely a form of economic nationalism.)

   
Trump is not the first person to come up with this strategy: as I noted in an article during the 2012 election, Mitt Romney was going in this direction already, albeit much less aggressively than Trump. 

Romney pledged to crack down on China's currency manipulation. He threatened the use of countervailing duties if necessary, a serious and previously ideologically taboo attempt to blunt America's trade deficit. He said illegal immigrants should "self deport."

Why was Romney less aggressive? For one thing, that was several years ago, and the causative trends hadn't yet gone so far. Two, he wasn't a billionaire, only a humble multi-millionaire, so he had to cater to the Republican donor class.

Which, while not sincerely socially conservative, very much adores free-market ideology as the perfect rationalization for their crony-capitalist reality. (Their interpretation of "free" markets is "government won't interfere with private distortions of markets in my favor.)  

Come to think of it, even Patrick Buchanan got there first, in the sense of taking economic-nationalist positions (anti-free-trade, anti-immigration) as a Republican primary candidate in 1992.  
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But Buchanan, of course, never attracted more than a fringe following. It's no mystery why. One, he wasn't a billionaire who could finance an entire campaign while defying the donor class and cowing the Republican establishment with the tacit threat of a third-party run tipping the election to the Democrats. Two, the credibility of "even freer markets are always the solution" economics hadn't exhausted itself in 1992. (As noted above, it didn't even peak until the late 1990s.) Three, there was not yet a collapse of social conservatism forcing a search for new ideological themes. 
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Even poor old H. Ross Perot fits perfectly into this picture. He was a trade hawk, anti-immigration, and relatively socially liberal. But he tried to do it without the legitimacy and infrastructure of an established party, and his political inexperience led to him getting spooked out of the race by, among other things, Republican dirty tricks. Still, astonishingly popular with the voters for a while. 
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So economic nationalism is a rich theme that's been waiting to be exploited for a long time. Like, say, civil rights in the early 1960s. Mr. Trump's comically blustering persona, which seems to confuse a lot of commentators, fits perfectly into this picture. Why? Because it enables him to seem much more right-wing than he really is, which is essential to retreating from obsolete rightist positions without incurring the wrath of primary voters. (Trump's the most experienced show-biz politician since Reagan; of course he figured this out.) Every time some liberal yaps about his being a dangerous crypto-fascist menace, it re-glues this mask, though one of his biggest vulnerabilities is that it will fall off.

The bigger joke is that the Republican establishment is fighting so hard against being saved. They may be the last to figure this all out."
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Added: The US has no opposition political party. Both Republican and Democrat party elites favor extreme globalism, massive free trade deals, and open borders: June 2016 artice:

6/27/2016, "Why Trump Wins," "He knows border wars have replaced culture wars." The American Conservative, by Scott McConnell

"Donald Trump became the presumptive GOP nominee because he won the GOP’s untapped residue of nationalist voters, in a system where the elites of both parties are, as if by rote, extreme globalists. He won the support of those who favored changing trade and immigration policies, which, it is increasingly obvious, do not favor the tangible interests of the average American....

On the triad of trade, immigration, and foreign policy, these [Trump] voters are nationalist, not globalist—they would limit America’s intervention in foreign conflicts and subject the importation of products and people from the rest of the world to a more rigorous is-it-good-for-us test. (And by “us” they mean themselves, not the Fortune 500.) By nominating Trump, the Republican Party has finally been forced to come to terms with these sentiments, choosing a candidate who is largely disdainful of the globalist consensus of GOP donors, pundits, and think-tank experts. 

For Trump and his voters, the “Reaganite” basket of so-called “conservative” issues—free trade, high immigration, tax cuts for those with high incomes and entitlement cuts for the middle class—was irrelevant or actually undesirable.

Meanwhile the Democrats under Hillary Clinton have solidified their identity as a party of America’s top and bottom, revolving around the dual axis of urban coastal elites who benefit from their ties to a global economy and poorer ethnic minorities. The Clinton wing of the Democrats defends the free trade deals and has now joined much of the hard left in opposing meaningful enforcement of America’s immigration laws....


The issues that have elevated Trump are not particularly new. Lasch described an American establishment increasingly contemptuous of Middle America, a “new aristocracy of brains [who] tend to congregate on the coast, turning their back on the heartland and cultivating ties with the international market in fast-moving money, glamour, fashion and popular culture. It is a question whether they think of themselves as American at all.” For Lasch, this “global bazaar” of multiculturalism, which could be savored without meaningful social obligation or commitment, suited the new elites to perfection."... 




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