Tag: United States

Failure and disgrace in 100 days

As they Trump Administration approaches its 100th day April 30, the failures are glaring.

Failures

The most obvious failures are in negotiations. Trump himself laid out the agenda. He wanted:

  1. The Canal back from Panama.
  2. To buy Greenland from Denmark.
  3. Canada as the 51st state.
  4. Gaza voluntarily emptied and redeveloped as a resort.
  5. The Ukraine war ended.
  6. A better nuclear deal with Iran.
  7. Trade deals that would “correct” bilateral imbalances.

None of this is happening. The first three items are fool’s errands hardly worth discussing. The four later ones are more serious propositions.

Even winning would be losing

The Gaza-a-Lago proposition was a green light for war crimes. The Israelis are trying to force Palestinians out of Gaza. They are failing so far, but they will no doubt persist. This is egregious even from a religious perspective: Biblical Jews did not live in Gaza. No religion, certainly not mine, can approve displacing two million people to please a real estate developer.

Trump is proposing to end the Ukraine war on terms favorable to Russia. Why is not clear, but Moscow would keep the territory it has taken, including Crimea. Kyiv would have to recognize Russia’s annexation of the peninsula. Ukraine would get no security guarantee from the US, which would gain privileged access to its minerals. This is a bad deal, one that that will not end the war, even if Kyiv and Moscow sign on. At best, it will pause the hostilities.

The better nuclear deal with Iran is a possibility. That’s because Trump is prepared to lift many if not all the sanctions. Biden refused to do that, because Washington imposed some of them for human rights violations. The Trump Administration doesn’t care about those. So a better nuclear deal for Trump means American endorsement of the Islamic Republic’s oppression. Not sure that is what Americans really want.

The Administration claims to be negotiating tariff deals with 90 countries. Unless they lower tariffs relative to the previous Administration, they will raise costs for American consumers. The most important of the negotiations is with China. That will end with higher tariffs both on Chinese imports to the US and on American exports to China. Yes, the US government will gain some revenue, though nowhere near as much as the Administration claims. And most of that revenue will come from Americans. Inflation will accelerate. Recession looms.

The disgraces

Trump supports Israeli war crimes in Gaza, Russian victory in Ukraine, endorsement of Islamic Republic human rights abuses, and trade deals that raise prices and slow growth for Americans. Add that to attacking American universities, arbitrary arrest, imprisonment, and deportation of immigrants, and canceling of vital scientific research.

The Administration is weakening the United States. That is the only thing at which it is succeeding in its disgraceful first 100 days.

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What US aid will look like after USAID

This is the best I’ve seen justifying USAID on the basis of its benefits to the United States. Certainly its food and health programs were also important to the rest of the world. I think it hard to argue that we were doing too much. It is inexcusable that we are now headed towards doing too little.

Shifting priorities

But that is not all that is going to happen. Trump will want to maintain some of the food programs, which DOGE claims to have restored already. Those all too obviously benefit farm communities that vote Republican.

The Administration will also restore some of the health programs, like bird flu surveillance, that directly benefit the US. But Trump will shift the funding for these programs away from the universities and nongovernmental organizations that used to do most of the work. He’ll want the money to flow to profit-making companies willing to kick back campaign contributions.

At the same time, vaccine programs and programs that support foreign agricultural production will suffer. So too will programs that help foreign governments in the health and agricultural sectors. Not to mention cuts to programs for democracy, rule of law, gender equity, or other liberal ideals. Foreign aid tends to reflect domestic values. That was the main point of Project 2025’s chapter on USAID. It did not propose elimination, just ideological purification in the right-wing direction.

The reform AID isn’t going to get

I am not a diehard defender of AID as it existed before Trump shredded it. It was founded as an economic development agency. It had failed to adapt to a world in which bilateral aid has relatively little economic impact. Multilateral agencies like the World Bank have most of the money, especially when it comes to infrastructure. Not to mention the gigantic international flows of private financing, including remittances.

I thought AID needed thorough reform. I’d have liked to see it refocused on setting up the institutions required to manage a modern market economy. Instead it continued to support relatively small economic development projects that rarely had much impact beyond the immediate beneficiaries.

But Trump isn’t going to want American aid going to health and agriculture ministries, justice sectors, and anti-corruption institutions and campaigns. Never mind education ministries. These are precisely the institutions he is destroying at home. He won’t support them abroad.

What’s next?

What we are headed to is foreign assistance as a feeding trough for Trump’s friends, including right-wing nongovernmental (NGO) religious organizations. The staff required to maintain accountability is already gone. The Administration will aim to defund the UN and mainstream NGOs with experience in health, food, and emergency relief in favor of profit-making organizations. As promised in Project 2025, it will try to withdraw from conflict-affected countries with governments unfriendly to the US, regardless of the humanitarian situation. And it will hire new staff loyal to its right-wing social values.

In short, US aid will be a cash cow for Trump donors, a mainstay of autocratic regimes friendly to the US, and a major funder of rightwing ideology. That will be worse than the unreformed USAID Trump inherited. Everything he touches turns to dross.

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The damage is vast and continuing

I’ve been at a workshop in Boston for these last few chaotic days. On the perhaps mistaken theory that President Trump will stick with the current tariffs, where do things stand?

The ugly

The losses on the stock market still amount to more than 10% of its value and trillions of dollars. If your timing was bad, you sold just before Trump suspended tariffs on most countries yesterday, causing a bump upwards. Odds are Trump, his family, and advisers did not make that mistake. Even if they didn’t use insider information to trade, they no doubt used it to desist from trading.

Trump’s on again, off again tariff decisions have done serious damage not only to the stock market. The bond market fall was a decisive factor in his “off” switch. That suggested strong inflation and rising interest rates, which would kill the Biden expansion Trump inherited. Stagflation is still a serious possibility.

With stocks and bonds collapsing, it would be surprising if Americans were to stay confident in the markets. The same is true for foreigners. The cash flow into the US that enables the trade deficit Trump wants to get rid of is in danger. Among the big buyers of US government bonds are the Chinese. Are they going to continue to buy, or even hold, those?

Markets rely on confidence. Trump has done everything possible since his inauguration to undermine it. Consumer confidence is declining sharply towards the relatively low level it hit during the COVID19 epidemic:

The bad

Trump’s tariffs are still there. The Economist estimates we’ve gone from an average effective tariff level of 3% to 25%. That is a giant increase that will hurt the American economy in many different ways. Because of our dependence on Chinese products, America is going to lose the trade war with China. Tariffs are still raising American costs, and Chinese retaliation is hurting US exports.

The automobile sector will be hard hit. American manufacturers, and foreign producers who manufacture in the US, are going to face sharply high costs. The capacity to ramp up domestic production of parts is limited. While the United Auto Workers union is applauding, few new jobs will result in the near term. Many more will be lost to the impending slowdown in the economy.

The good

If there is a silver lining, it is in national consciousness. Americans are becoming aware of their connections to the rest of the world. No one can ignore the damage that an incompetent and capricious president can do. Trade and alliances count. A Federal government that can think clearly and act sensibly is indispensable.

Some of this consciousness will help people understand the damage that cutting the Federal work force and budget will do. The so-called Department of Government Effectiveness has already demonstrated its vast incompetence. It is also hurting states and cities all over the country. The $2 trillion cut the House is asking for will cut deep into Medicaid and likely Medicare as well. Social Security is also at risk.

The simple fact is we were better off on January 19 than we are today. If Trump keeps this up, he will rank as a disastrous president.

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People are not pleased but it will get worse

Hard to picture a worse reception than President Trump got for his latest tariffs. American consumers are recognizing that they are inflationary, the stock market tanked, and the rest of the world gasped. That presumably includes the penguins on Heard Island, one of at least two places subject to Trump’s tariffs where no people live.

Not good for Americans

Trump’s minions are out trying to convince Americans the tariffs will not increase prices. But they will. Domestic producers will raise their prices, because they can once the competition raises its prices. The tariffs will act as a tax on consumption, reducing disposable income and slowing the economy.

The protection for domestic producers is badly targeted from a labor perspective. Americans don’t want to work in tee shirt factories that can compete with Vietnam’s. Nor do most Americans want to pick peaches. The US is a developed country that has moved up the value chain.

The re-shoring of manufacturing jobs to America will be slow. It takes years to build serious factories. What investor, seeing how capriciously Trump behaves, would lay out a few billion just because he has announced a 10% tariff? That could disappear tomorrow. Under Biden, the American economy had already created a record number of manufacturing jobs. Manufacturing in Trump’s first term lost jobs, partly due to the COVID-19 epidemic he mismanaged.

Eighty per cent of our jobs are in services. Retaliation will hit those hard and fast.

The economy

So inflation will be up, jobs will be down. The odds of a recession are way up. The firing of tens of thousands of government workers will hit communities all across the country, not just in Washington DC.

Wait until those who own stock have a hard look at their portfolios. They will cut back on spending. This “wealth” effect will be particularly pronounced for retired people, who are required to take amounts fixed on December 31 from their retirement accounts. Unless they anticipated the downturn in the market, they’ll have to raise those amounts by selling stock worth much less than it did a few months ago.

Meanwhile the Fed will have to do what it can to moderate prices. Its only real tool is to raise interest rates, which will pinch consumers even more. Trump will rail against the Fed, but it will have to hold the line.

The rest of the world

Trump is telling people the tariffs are not a negotiating ploy. He wants them to stay for years, which is the only way they can boost domestic production. This means America’s trading partners will be retaliating hard and fast, while turning to increased trade with each other. That will give them the competition they need to enhance productivity, while American industry grows fat and lazy behind high tariff walls.

The consequences will be felt in many ways. Innovation will lag. Trump has already done enormous damage to America’s research universities and government research institutions. His erratic enforcement of immigration laws is also actively discouraging foreigners from coming to the US. Young scientists and engineers will be going for advanced education to universities in Europe, Latin America, Australia, India, and China rather than the US. It’s not only the tourism industry that will suffer from their absence. Immigrant entrepreneurs are a far higher percentage of the total than immigrants are in the population.

Is it all purposeful?

It is tempting to suggest that all this is not an accident. Trump has repeatedly shown an inclination to weaken the United States, especially in Europe. Is that the real purpose?

But I’m afraid that would give him too much credit. The tariffs and immigration policy are just dumb. He is a profoundly uneducated mercantilist and racist. But I wouldn’t say the same about the attack on the universities and research institutions. That is an effort to rid the country of people who would dare to challenge him on factual and rational grounds. He wants an America swollen with racial prejudice and isolated from the world. Half the country supported that objective in last November’s election.

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Okay, but still a long way to go

Yesterday was an election day in parts of the United States. The most important races were in two deep-red Congressional districts in Florida and a state court judgeship in Wisconsin. In Florida, the Republicans won, despite heavy Democratic spending. The margins were half of what Trump had scored just five months ago. In Wisconsin, the more liberal candidate won a Supreme Court seat, despite Elon Musk’s massive spending and personal campaigning.

By-elections don’t often excite the US. But the media had billed these as early referendums on the Trump Administration. The Wisconsin contest will decide the court’s balance on issues like abortion and redistricting. That could be important in the long run. The Florida races will not change the majority in the House, but they are bellwethers. They suggest a big shift away from Trump.

Break it and never fix it

Nevertheless, no one should expect big changes. Trump today will announce big tariffs. That will trigger retaliation against US exports worldwide. Musk’s firing of government workers continues, including Internal Revenue Service people who collect far more additional in taxes than they cost. The National Security adviser continues to use insecure communications. The immigration enforcement folks have admitted at least one mistaken deportation, but they are not going to try to bring the man back from El Salvador. This is the break it and never fix it Administration.

That applies also abroad. Trump has left Ukraine dangling. Kyiv has agreed to a limited ceasefire but Trump can’t get Moscow to do likewise. Encouraged by Trump’s bellicosity, Israel is breaking the ceasefire with Hamas. Greenlanders have made it clear they don’t want to be part of the US, but Trump is proceeding with planning to take over the vast ice land. Canadians have done likewise, but Trump persists.

How will this play out?

Most of my friends want to know how all this will eventually play out. The short answer is I don’t know. We seem to still be far from the kind of political upheaval that will reverse the madness. Senator Booker broke the record for speaking in the Senate yesterday, at over 25 hours denouncing the Administration. That may rally some support from a few Democrats. There will be demonstrations countrywide this Saturday, but Trump and his minions will ignore those.

Until there is a Democratic majority in at least one of the Houses of Congress, it is up to the courts to slow and block the worst of Trump’s behavior. They are doing okay. But they are expensive and slow. Their remedies are often blunt or lacking. And ultimately the supermajority of “conservatives” (that is Republican hacks) on the Supreme Court get to decide. Justices Alito and Thomas will do anything Trump wants. The other four Republican nominees are not far behind.

Diasporas are the best hope

Even the courts won’t help much with foreign policy, as the President’s powers there are vast. The best hope lies in diasporas from around the world. They have a lot of domestic influence in parts of the United States. I’m told the diaspora was responsible for getting Marco Rubio to say the right thing recently about Bosnia. That should be a lesson to Albanians, Ukrainians, Poles, Taiwanese, and others.

The key is to find a place where your diaspora can make a real difference in a House or Senate election outcome. Then find a major influencer or contributor to Republican campaigns willing to threaten to withdraw support. That may get a hearing, if you are connected in the right way. Trump is transactional. The diasporas have the potential to make transactional bargains with him.

Meanwhile, the rest of us marvel: is this the same America that once welcomed those yearning to breathe free? Or is this a revival of the 1920s and 1930s America that tried to limit immigration, raise tariffs, and isolate itself from Europe?

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Hope is where the wild things are

My wife and I hosted a long-scheduled reunion for US Institute of Peace people last night. They were not for the most part current employees but rather people who worked there in 2005. Friday the current employees of the Institute were abruptly, but not unexpectedly, terminated.

I worked at USIP from 1998 to 2010. I left to teach at the Johns Hopkins School of Advanced International Studies. So my regret for what has happened is personal, not just intellectual. Caveat emptor.

A bit of history

The USIP website is now blocked, allegedly for security reasons. You can be pretty sure that isn’t true, but it means a bit of history is in order. Congress created USIP in 1984 during President Reagan’s presidency. It started life mainly as a grant and fellowship giver but evolved into a thinktank .

After the Bosnian war, it went in a new direction. We called it a “do-tank.” USIP tried to apply what had been learned through its grants, fellowships, and scholarship to real-life conflict situations. That started in the Balkans and then expanded to Iraq, Afghanistan, and in the last two decades many other places. Funding came both from direct Congressional appropriations and through the various Administrations, which would sometimes decide USIP could be helpful.

What USIP did

A few stories may be worth the telling. In about 2004, Don Hays–then the deputy High Representative in Bosnia–got the State Department to fund his effort after leaving Bosnia to help the Bosnians negotiate constitutional amendments. I don’t remember the cost, but it was well under $100,000, plus Don’s salary, which State was already committed to paying. The negotiations succeeded, but the constitutional amendments failed in the Bosnian parliament. They missed a two-thirds majority by just two votes. I think it now clear that those constitutional amendments would have vastly improved the situation in Bosnia.

After the invasion of Iraq, USIP requested and received $10 million for peacebuilding work there, focused mainly on preventing sectarian strife and helping establish rule of law. That effort aimed to tamp down a mostly Sunni rebellion against the Shia majority. USIP helped to train a network of Iraqis of all ethnicities who continue to this day to try to prevent sectarian and ethnic frictions from turning violent.

I could continue. USIP worked with amounts of money that were small in Defense Department terms to support US national security objectives in conflict zones abroad. Some of us were politically liberal and some of us were politically conservative, but we all recognized that benefits of preventing violent conflict in places the US had vital interests.

Fast forward

USIP made it through the Bush and Obama Administrations in decent shape financially, though it relied increasingly on transfers through the administration rather than direct appropriations from Congress. It also moved in 2011 to its new building at 23rd and Constitution. Its President, Richard Solomon, raised a lot of private money for the building. He also got the Navy to transfer the land to USIP.

USIP remains a non-governmental organization run by a bipartisan board appointed by the President and confirmed by the Senate. The Administration had three ex-officio members on the Board: the Secretaries of State and Defense as well as the President of the National Defense University.

What Trump is doing

The Trump Administration now claims that the President has fired all the appointed members of the board (Democrats and Republicans, with one independent). The ex-officio members have appointed a new USIP chief executive. Courts will decide whether the Trumpkins can get away with this. But it is a dramatic departure from how USIP has been run in the past. Whether a quorum was required to fire the then acting president of the Institute is unclear.

Trump has not made clear what he intends to do with the Institute. But it won’t be surprising if he tries to close it entirely. That’s what he has done with so many vaguely similar “quangos,” that is quasi-nongovernmental organizations. Their claims to independence are offensive to the right-wing would-be autocrats who believe in the “unitary executive.” They refuse to tolerate any independent institutions, governmental or quasi-governmental. Trump will try to get his patsies on the Supreme Court to validate their views. They are also trying to limit the independence of nongovernmental institutions like law firms and universities.

Hope, or not?

I don’t have much hope for USIP’s future. I do hope its lawyers win in court and get a big settlement for its employees. But by that time the Institute will be nothing more than a shell. A future Administration could rebuild it, but not in the current political environment. Bipartisanship has gone the way of the dodo.

The baton passes now to other institutions worldwide. Europe has an Institute of Peace, as do any number of countries that mimicked USIP, to one extent or another. Hope lies wherever the restraining and suffocating writ of the Trump Administration does not extend. That’s where the wild things are.

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