When President Obama reminded us that the presidency is “not a reality show,” it is probably a safe bet that a good deal of the Establishment would agree with him. And who can blame them? Their TV station is tuned to a completely different channel than the rest of us are watching. While the followers of Trump’s Economic Reality Show, in countless decimated industry sectors such as steel, have been watching the brutal reality of having a 30 year career ended with the inevitable dislocation and foreclosure, The Establishment’s Reality Show consists of shopping for imported designer handbags, tailor-made suits, and the sweet pleasures of martinis at swank bars dotting some of the most expensive real estate in the country without having produced even the smallest form of real wealth in the form an industrial good. And should a small sense of guilt creep in while stirring the olive, each episode of the Establishment reality show ends with the textbook mantra, “free trade makes the whole world richer.” In other words, saving $50 on your next TV set really was worth giving up your income and homestead for.
Should any of us cast doubt about the reality of Establishment’s TV hour and get the crazy idea to challenge the logic of modern economics built on Stone Age barter as I have (see Just Measures tab), you should be forewarned that academia has blocked the cave entrance with super computers running general equilibrium models assured to intimidate the most daring and capable among us. But as any software developer will remind you, your models are only as good as the assumptions you’ve programed into your code. Engineering a bridge is no different. Else your bridge will collapse. And so too it is economic theory. An economy with out factories is one that can only be duct-taped together by long term deficit and war-time spending. A financial crisis is a logical consequence of excessive duct taping, if one understands factories ARE the economy and finance ultimately depends on industrial wealth production to survive. Finance is nothing more than bookkeeping to keep track of IOUs (industrial loans) needed to produce industrial goods. Because you can not borrow if you cannot produce, finance hits a dead without industry in the long run.
China is producing record billionaires because of its industrial base, not because of finance or the endless adjustments of interest rates. So while the Chinese started their own reality show whose first episode consisted of tossing out mainstream economic textbooks, a new reality show is beginning to emerge in the likes of political new comer like Paul Nehlen. Take a look at his brief reality show:
Surprisingly, Trump’s Economic Reality Show has its origins in our Constitution which Daniel Webster argued was design to stop free trade with manufacturing powerhouse Great Britain. The reality show episodes continued with Lincoln and the GOP until the 1960s when the last episode aired.
What then does Trump’s Economic Reality Show amount to in my view? Simple. Bring our factories home with tariffs and watch prosperity explode. The other channel is playing out a show which ends with a financial crisis emerging that not even even the Establishment will be able to protect its duct-taped acquired wealth from.
So I ask my reader, how presidential is it to encourage the exportation of our factories which are our only true source of prosperity and security? Say what you want about political missteps in this race, but none compare to the deindustrialization of our country and destruction of American livelihoods, and national security to boot: http://www.manufacturingnews.com/news/2016/Trusted-Foundry-0531161.html