Tag Archives: trump

Trump’s Executive Order on the Department of Education is a Good First Step

President Trump signed an executive order on Thursday to “shut down” the federal Department of Education, keeping the same campaign promise President Reagan failed to keep over forty years ago. The order goes as far in eliminating the department as the executive branch has the power to go without a successful bill in Congress, which created the department in 1979.

The purpose of the order is to transfer most of the administrative and management functions over public education back to the states while not decreasing or eliminating federal funding of education, including subsidies and guaranteed student loans. It is a good first step but does not address the massive economic distortions in the education industry created by federal financial interventions.

The order is not specific on which functions will be transferred back to the states or eliminated. It simply states, “The Secretary of Education shall, to the maximum extent appropriate and permitted by law, take all necessary steps to facilitate the closure of the Department of Education and return authority over education to the States and local communities while ensuring the effective and uninterrupted delivery of services, programs, and benefits on which Americans rely.”

Since Congress created the department in 1979 and the bill creating it was duly signed by President Carter, it cannot be formally abolished without a new bill passed in Congress and signed by Trump. Therefore, what functions, if any, the law permits eliminating or transferring to the states is unclear. The administration may decide to find out by trial and error.

Ironically, the order exercises a power it is theoretically written to eliminate: the use of federal funding as leverage to dictate to the states what they may or may not do in terms of how they manage public education:

“Consistent with the Department of Education’s authorities, the Secretary of Education shall ensure that the allocation of any Federal Department of Education funds is subject to rigorous compliance with Federal law and Administration policy, including the requirement that any program or activity receiving Federal assistance terminate illegal discrimination obscured under the label “diversity, equity, and inclusion” or similar terms and programs promoting gender ideology.”

This is based upon the conservative viewpoint that all affirmative action, including the newest branded under “diversity, equity, and inclusion” (DEI) violates the Civil Rights Act of 1964 and other federal civil rights legislation. It’s hard to dispute this since the thrust of all those laws is to prohibit the consideration of race, sex, or religion when hiring employees, granting admission to universities, etc. and the stated goal of DEI is to do precisely what the laws prohibit.

The problem with this is that a subsequent Democratic president could write an order requiring any educational institution receiving federal funding to have a DEI program and meet quotas for racial or gender categories. So, the order doesn’t really even attempt to abolish or reduce this aspect of federal interference in state and local public education.

Neither does the order affect the tremendous economic harm done by federal subsidization, especially the guarantee of student loans for college tuition. As I’ve covered in a previous podcast, this intervention has resulted in an absurd artificial rise in college tuition prices. Most of the money has not gone into hiring more teachers but rather to an explosion in the number of administrators in higher education. And, as Trump and other conservatives point out, this has not led to better educated students. Quite the contrary.

Even if the administration were successful in getting a bill through Congress to completely abolish the Department of Education and truly return public education to the states, it would not be a panacea for the ills of government schooling. While an electoral map may indicate more red states than blue states and one may be tempted to think that would translate into a more conservative perspective prevailing in public education in those states, it likely would not.

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Tom Mullen is the author of It’s the Fed, Stupid and Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty, and the Pursuit of Happiness?

What are the goals of Trump’s tariffs?

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President Trump announced Friday another pause on some tariffs on products imported from Canada and Mexico after a rocky week for equities markets trying to price in their effects. At the same, he says that tariffs could go higher than 25% in the future.

Trump’s stated reason for imposing the tariffs on the two USMCA partners is their failure to control illegal immigration and drug trafficking across their borders into the United States. Apparently, the president believes tariffs are the cure for just about anything, including illegal immigration.

But in a Q&A aboard Air Force One, Trump returned to the more traditional mercantilist arguments in favor of tariffs that he campaigned on. Asked if he is worried about a recession, Trump replied no, adding,

“All I know is this. We’re going to take in hundreds of billions of dollars in tariffs and we’re going to become so rich, you’re not going to know where to spend all that money, I’m telling you, you just watch. We’re going to have jobs, we’re going to have open factories, and it’s going to be great, and the plane is landing, and thank you for a lot of good questions. Thank you very much.”

There is a lot to unpack in that relatively short answer.

First, the president seems to believe taxing and spending are the keys to a strong economy. He tells the reporter “you’re not going to know where to spend all that money.” But it won’t be the reporter or anyone else in the private sector spending the money. It will be the government.

He also says the tariffs will collect “hundreds of billions of dollars.” As the president has also suggested tariffs could replace the income tax, it is worth noting that would require thousands of billions of dollars, not hundreds. Three thousand billion, to be exact, when counting the $500 billion in corporate taxes collected last year in addition to $2.5 trillion in personal income taxes.

But the last part of his answer carries the main foundation of Trump’s economic vision.

Candidate Trump promised tariffs would protect domestic manufacturers and their employees from cheaper foreign competition. Indeed, imposing tariffs similar to those imposed upon U.S. imports to its trading partners would cause manufacturing productions and jobs lost to China and other, lower labor cost countries would return to the United States. All this begs the question: What is the goal of the tariffs? Are they meant to collect revenue, perhaps enough to replace the income tax, or to protect domestic production? “Both!” Trump and his supporters would probably answer. It’s win-win. Americans will be so tired of winning some might be hospitalized for exhaustion. But tariffs can’t do both. It’s physically impossible.

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Tom Mullen is the author of It’s the Fed, Stupid and Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty, and the Pursuit of Happiness?

Trump’s treatment of Zelensky mirrors the Genet affair

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President Trump confirmed a major foreign policy shift in dramatic fashion on Friday when he asked Ukrainian President Volodymyr Zelensky to leave the White House after a heated public argument that included both presidents and U.S. Vice President Vance. Zelensky was in Washington to sign a mineral deal with the U.S that was aborted, at least for the moment, after both Trump and Vance took exception to Zelensky’s criticism of the Trump administration’s position regarding negotiations with Russia.

The incident was cheered by Trump’s supporters and condemned by all the usual suspects among his detractors, expressing outrage and embarrassment that a foreign head of state would be treated this way. But the real question it raises is whether it will mark the beginning of Washington’s return to the foreign policy bequeathed by the man whose name it bears.

No American alive today has known firsthand any other foreign policy than the one the U.S. government maintained throughout the 20^th century, which is active involvement, both military and by other means, in the affairs of foreign nations, especially in Europe. Washington’s worldwide standing army of over 200,000 troops deployed overseas has become a norm taken for granted, as has the so-called “special relationship” with the United Kingdom and the “alliance” with Israel (the U.S. has no formal treaty with that country).

But it wasn’t always this way. Most Americans would be surprised to learn that their country became rich and powerful enough to be capable of affecting global geopolitics with precisely the opposite foreign policy. More surprising still might be that 19^th century U.S. foreign policy was launched with an incident eerily similar to Friday’s.

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Tom Mullen is the author of It’s the Fed, Stupid and Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty, and the Pursuit of Happiness?

Trump’s cuts could cause (necessary) economic pain

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On Sunday, President Trump posted the following to his Truth Social account:

ELON IS DOING A GREAT JOB, BUT I WOULD LIKE TO SEE HIM GET MORE AGGRESSIVE. REMEMBER, WE HAVE A COUNTRY TO SAVE, BUT ULTIMATELY, TO MAKE GREATER THAN EVER BEFORE. MAGA!

For any supporters concerned Trump’s resolve to cut federal spending might moderate that would seem to allay those concerns for the moment. And despite all the wailing coming from beneficiaries of federal largesse, the cuts made so far don’t even amount to a haircut for the federal leviathan.

To put them in perspective, the cuts proposed so far by the administration, based upon recommendations by Elon Musk’s Department of Government Efficiency (DOGE), are all within a the category of the federal budget called “Discretionary Spending.” Discretionary spending for fiscal year 2025 is projected to be $1.848 trillion. Overall spending is projected to be $7.028 trillion.

So, DOGE is only looking to make cuts to about one quarter of total spending. About half of that one quarter is Defense spending at $859 billion. Trump has said he wants to cut military spending, but that appears to be contingent upon China and Russia agreeing to cut theirs in a future, theoretical deal.

Meanwhile, the Senate just passed a spending bill that increases defense spending by $150 billion.

That leaves about one eighth of the budget affected by DOGE cuts. And DOGE certainly isn’t even trying to cut all of that one eighth.

Still, what cuts are made have the potential to punch far above their weight. Closing down USAID, for example, even if a lot of its funds are eventually spent, constitutes a major policy change given the revelations about what the agency was doing with those funds. Opponents of everything from covert regime change operations to censoring domestic political speech may be quite pleased with the difference firing just a handful of federal employees might make.

There is also the potential for outsized economic pain from cutting a relatively small percentage of the federal budget. Given the Federal Reserve’s $5 trillion tsunami of new money created since 2020, the U.S. economy is in an “everything bubble” and even marginal cuts to federal spending might be the pin that pops it.

Bubbles represent capital deployed for nonproductive ends and need to be popped. But no one is happy when it happens. Typically, bubbles blow up under one president and pop under the next. Guess who gets the blame?

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Tom Mullen is the author of It’s the Fed, Stupid and Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty, and the Pursuit of Happiness?

Trump’s Cultural Counterrevolution

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On Friday, President Trump posted on his social media network Truth Social a promise to rescind former President Biden’s executive order phasing out plastic straw use in the federal government.

“I will be signing an Executive Order next week ending the ridiculous Biden push for Paper Straws, which don’t work. BACK TO PLASTIC!” wrote the president.

Some might interpret Trump’s attention to this matter as frivolous, just another example of an undisciplined president who still hasn’t learned how to pick his battles. Certainly, his detractors in the media will present it this way, whether they believe it themselves or not.

But there is another way to look at Trump’s tirade, which is likely far more calculated than its presentation may appear. It is a clear message to his adversaries that no stone will be left unturned in what can only be described as the beginning of a cultural counterrevolution the Trump administration has begun during the opening weeks of his second term in office.

This counterrevolution has been launched with a “shock and awe” approach. In the space of a few weeks, Trump has pulled the United States out of the Paris Climate Accord, dismantled USAID, begun the process of abolishing the Department of Education, and ordered schools to cease allowing biological men to compete against women in sports or lose their federal funding. He has even committed to siccing DOGE on the Department of Defense, something Trump 2016-20 would never have considered.

Oh, and the straw nonsense. That’s over, too. No stone unturned.

The cultural counterrevolution’s goal, of course, is to overturn the cultural revolution which began in the 1960s, accelerated during the Obama administration, and reached its climax during the Biden administration. Its philosophical roots in the Frankfurt School, transplanted to the United States during the 1930s, it set out overthrow what was left of classical liberal America after the New Deal and WWII.

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Tom Mullen is the author of It’s the Fed, Stupid and Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty, and the Pursuit of Happiness?

No, Republican Tax Cuts Did Not Contribute to the National Debt

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During his first term, Donald Trump signed a bill significantly reducing corporate tax rates and lowering personal income tax liability for most Americans. He has promised to further lower income tax rates for corporations and individuals in his forthcoming second term.

This has provided the opportunity for Democrats and other opponents of tax reductions to make the perennial claim that tax cuts signed by Republican presidents have and will continue to blow up the national debt. This claim is demonstrably false.

There are some economic issues that provide room for argument depending upon which economic school one adheres to. However, this issue is not debatable. No tax cut signed by a Republican in the past fifty years has increased the debt more than it would have otherwise increased had the tax cut not been implemented.

It’s easy to understand why the public believes this superficially plausible claim. If the government is running deficit X under the current tax schedule and that tax schedule is reduced, the government will collect less revenue and the deficit will increase to X + less revenue collected. It makes perfect sense.

The only problem is it has never been the case that the government collected less revenue after a Republican tax cut. Never. Ever.

Don’t take my word for it. Just look at tax receipts. Since this tax cut/debt fable began during the Reagan years, look at tax receipts after the tax cuts he signed. They increased so significantly that by his last year in office the government was collecting almost double the amount of taxes it was collecting in Carter’s last year.

While this may seem counterintuitive, it is nevertheless true. The explanation probably lies in what has come to be known as the “Laffer Curve,” named after economist Art Laffer. This theory also has its own little Democratic Party myth built into it. Democrats like to claim Laffer was wrong when he said “tax cuts pay for themselves.” This myth is wrong in two ways.

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administrations. Tom Mullen is the author of It’s the Fed, Stupid and Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty, and the Pursuit of Happiness?

An Election Heard Round the World

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In 2016, Donald Trump shocked the world. With no political experience whatsoever he ran for president and defeated two political dynasties, the Bushes and Clintons, in the Republican primary and general election, respectively.

Trump came out of nowhere and took the bipartisan ruling establishment completely by surprise. At first, they ridiculed him, Huffpo going so far as to relegate any articles about his campaign to the Entertainment section.

However, it didn’t take long before they recognized Trump was a credible threat not only to the Republican Party side of the establishment, but the whole, corrupt, globalist cabal. That’s when they began demonizing him. And once he won the presidency, the establishment committed itself to two objectives:

Neuter his presidency to the best of its ability with investigations, impeachments, and resistance to his directives by the executive branch bureaucracy and,

Make sure electing him or anyone like him could never, ever, happen again.

And so, the public was regaled with anti-Trumpism nonstop, during and after his presidency, for eight straight years. Trump and his supporters weren’t the only victims of this psychological waterboarding. Tens of millions of American liberals became consumed with irrational fear planted in their psyches by the media that Trump would “end democracy” and replace it with 1930s-style fascism a la Hitler or Mussolini.

Even after Trump’s first term, during which none of this happened, liberals as high profile as actor Robert De Niro truly believed they would be in physical danger were Trump to be elected again. Certainly, Trump made the media’s job easier with some of the undisciplined things he said, but no one can point to any overt act of his as president that remotely justifies this animal terror.

What would motivate the political establishment to go this far, to demonize one half of the electorate along with their candidate, and to inflict psychological terror on the other half? To go so far as to prosecute Trump in multiple jurisdictions on spurious charges even after he secured the Republican nomination?

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It was truly an election heard round the world. Tom Mullen is the author of It’s the Fed, Stupid and Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty, and the Pursuit of Happiness?

Is Trump Against the Administrative State or For It?

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“Trump Ratchets Up Threats on the Media” reads a New York Times headline this morning. It refers to Trump’s suggestion that CBS should lose its broadcasting license over its editing of an answer Democratic Party nominee Kamala Harris gave to a question during her recent 60 Minutes interview.

During the interview, Harris was asked pointedly whether the U.S. government has any sway over Israeli Prime Minister Netanyahu given the massive financial support it has given him in fighting Hamas. Based upon footage 60 Minutes released to Face the Nation, Harris responded with one of her signature word salads that failed to answer the question. However, what aired on the 60 Minutes broadcast was a succinct, one sentence answer that also failed to answer the question or really mean anything at all, but which made Harris appear less like the babbling nonentity her detractors say she is.

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Whether the edit was intended to help Harris or not is anyone’s guess. Of course, CBS denies its edit was misleading or so intended. And while Trump’s general complaint that the media treat him and his campaign with a completely different standard than they do Harris and hers, the 60 Minutes interview of Harris did not come off that way at all. Interviewer Bill Whitaker asked Harris challenging questions and pressed her with follow-up questions when her answers were unclear.

While Trump and his supporters have every reason to suspect there may be footage even more damaging to Harris than what was aired on the 60 Minutes broadcast, the interview was nevertheless a train wreck for Harris. The real question here isn’t whether CBS violated FCC regulations and should therefore lose its broadcasting license. It is, “Why is there a five-member board of bureaucrats who can make this decision at all?”

Trump and his surrogates have said things encouraging to libertarians and terrifying to the media about their supposed intention to dismantle the administrative state. In a video speech, he Trump promised to “dismantle the deep state and reclaim our democracy from Washington corruption.”

Those words in a vacuum would suggest he had a plan to undo the unconstitutional transfer of legislative power from Congress to the executive, born in the early Progressive Era and institutionalized by the New Deal, as well as reclaim executive power also usurped by federal agencies. However, what follows during the speech significantly waters down the promise of its opening statement.

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Tom Mullen is the author of It’s the Fed, Stupid and Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty, and the Pursuit of Happiness?

Election Year Slogans Aren’t Just Dumb, They’re Completely Wrong

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Another presidential election is upon us and, as usual, there is really no way to avoid it. Less than three weeks from today, either Kamala Harris or Donald Trump will begin preparing to assume the most terrifying, destructive power the world has ever known. And regardless of which one wins, the relentless destruction of our lives, liberties, and estates will continue.

The one thing we can look forward to after November 5 will be the temporary cessation of ritual election year slogans blaring at us from every corner of the media sphere. It isn’t merely that these slogans are hysterical and dumb. They are mostly completely wrong.

Let’s take one we hear every presidential election year that no one seems to question: “We need a president who will unite the country.” Heated arguments occur between pundits over which candidate is more “divisive” and even supporters of a candidate will say he is better but reflectively ask, “Can he unite America?”

If anyone has any idea what this means, then please tell me. I have none. It seems to suggest that 330 million people are all supposed to either believe the same thing or pretend they do. It is suggested there is some common thing these 330 million are working on that will benefit them all equally if only the right dear leader would show them the way.

The truth is the whole “unite the country” premise is wrong. It’s the opposite of the truth. A free country is one where people are left alone by their government to pursue their very separate interests. It is that from which all good things come as Adam Smith so astutely observed during the USA’s birth year. The only time the whole country is united behind a president is during a war. And those are all disasters.

A related sophism is the hackneyed refrain about the president “moving us forward.” Every presidential candidate promises this and virtually no one stops to ask what it means. It is just another variation on the theme that “we” are all working on some project vital to each and every one of us. What that project is I have no idea. This one employs fictional start and end points as metaphors for achieving this great work.

Most people, when not under the spell of these incantations, are working on their own lives, taking care of their own families, and at most helping make their own communities a nicer place to live for themselves.

And that’s perfectly ok. That’s what they’re supposed to be doing. History shows that leaving them alone to do precisely that makes the whole world better for everyone.

Mao Zedong had everyone united and working on the same project, whether they liked it or not. About fifty million of them ended up dead. Do you know what his project was called? The Great Leap Forward. I kid you not.

Really, as soon as a politician utters the word “we” or “us,” you should be suspicious. Nothing good ever follows. When you hear the words “move forward,” run like hell. Or prepare to defend yourself.

Then there is the perennial call for a president who can “get things done.”

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Tom Mullen is the author of It’s the Fed, Stupid and Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty, and the Pursuit of Happiness?

Job Creation Still Hasn’t Recovered from the Useless Covid Lockdowns

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“Dow closes at record high after blow-out jobs report” proclaimed NBC News on Saturday. It is not surprising the story would ignore all historical perspective, even history within the past few months. Incumbent presidents routinely take credit for job creation during their administrations and the gullible American public largely believes them. Perceived as prospectively continuing the policies of the Biden administration, good news from the jobs report helps Kamala Harris’s election chances.

It isn’t just ignoring that only two months ago, the Bureau of Labor statistics revised downward their previously reported number April 2023 – March 2024 by over 800,000 jobs (around 27 percent)*. It’s the surreal practice of even talking about supposed job creation over the past four years as if most of it weren’t just recovering jobs lost during the 2020 Covid lockdowns.

During March and April of 2020, the BLS reported net job losses of almost 22 million. Of course, these were not the type of job losses sustained during the 2008 financial crisis. These were people ordered to stay home by the government as part of a suite of responses to Covid that did nothing but harm.

As people were allowed to go back to work, there were several months for which the BLS reported millions of “jobs created.” But everyone understood these were mostly just people previously ordered to stay home returning to work. At least while Trump was still president.

But once Joe Biden was inaugurated, the national media started ignoring that reality and treating higher than usual jobs reports as vindication of “Bidenomics.” The truth is it took years just to recover the number of jobs lost during March-April 2020. The 22 million jobs reported lost during that period were not added back until September 2022.

That’s 31 straight months of zero jobs created on net while millions of undocumented mouths to feed entered the country. That is an economic blow the likes of which modern Americans have never experienced in their lifetimes. And the problems it created were by no means solved after September 2022 when the economy finally began adding new jobs on net. One cannot just start counting jobs created after September 2022 as “net jobs.” One also has to recognize the opportunity costs of the lockdowns.

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Tom Mullen is the author of It’s the Fed, Stupidand Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty, and the Pursuit of Happiness?