Defeating The Greater Lawlessness

 Popular Economics Weekly

“The Republicans’ hunger for power has now reached such a point that they have selected and continue to support a president who has lied and cheated his whole adult life; from Trump Casinos to Trump Towers, from stiffing bankers and his workers to cooking the books.” H Green/Huffington Post

NYTimes

We knew as long ago as Nixon’s Watergate that the Republican Party harbored a lawless tendency when it suited them. Why else would President Reagan engineer the illicit Iran contra arms deal with Khomeini, or President GW Bush invade Iraq when UN inspectors already knew Saddam Hussein had destroyed his weapons of mass destruction a decade earlier, I said in 2017?

Now we have illegal tariffs and an unpopular war with Iran, one that will drive inflation even higher and might take years to return to the Federal Reserve’s 2 percent target to fulfill its mandate of full employment with stable prices.

The result? Another recession, sooner or later, as happened during Presidents Reagan (2) and GW Bush terms. In Bush’s case, he managed to turn four years of Clinton budget surpluses (1996-2000) that could have kept social security and Medicare solvent for decades into a worldwide Great Recession (2008-09), the worst since the Great Depression, according to most economists.

President Trump’s Republicans are following the same path with his huge tax cuts while borrowing $trillions to fight his wars, cutting public services to the bone and closing whole departments by firing more than 300,000 federal employees.

Republicans have doubled down on their lawlessness by allowing his illegal wars and tariffs, and maybe what could precipitate the next recession; their determination to deport as many undocumented immigrants as possible without allowing them due process or a legal pathway to citizenship.

Immigrants are taxpayers that add workers to our shrinking population, and their loss is depriving our economy of essential services—agricultural workers that supply our groceries, for starters, but also a large part of construction, healthcare, transportation and lower paying service workers in leisure and hospitality.

This can only be done because Trump’s Republicans either ignore or disregard the civil laws, as well as economic laws, and even the constitution in their hunger for power. This is impoverishing more Americans, not to speak of turning a blind eye to the illegal enrichment of the Trump family and their supporters.

What can be done to return the $trillions in wealth and power that Republicans have taken away from the American people via their massive tax cuts to corporations and wars that were never paid and ignore the most basic rules of capitalist enterprise, such as debts must be paid, contracts and treaties honored?

The sad fact is that the Iran war wasn’t necessary because President Obama had already negotiated a nuclear arms agreement with Iran and Trump’s tariffs have been mostly based on ignorance of foreign trade tradeoffs, not unfair trade practices.

The history of greater lawlessness and hunger for more power is leading to a massive disruption in foreign trade which is the life blood of the world’s economies. It is repeating the mistakes that choked off world trade in 1930 and led to the Great Depression.

The question is how much longer will consumers and voters tolerate the record of Republicans’ failures that have led to four recessions just since 1980 that were the result of their hunger for more power?

Polls are showing that ordinary Americans are beginning to understand what it means.

Harlan Green © 2026

Follow Harlan Green on Twitter: https://twitter.com/HarlanGreen

Trump's Art of the Steal

 Popular Economics Weekly

“I put lipstick on a pig,” he said. “I feel a deep sense of remorse that I contributed to presenting Trump in a way that brought him wider attention and made him more appealing than he is.” He went on, “I genuinely believe that if Trump wins and gets the nuclear codes there is an excellent possibility it will lead to the end of civilization.” Author Tony Schwartz

Huffington Post

Tony Schwartz should have named his 1987 Trump biography “The Art of the Steal.” Trump’s main talent has been his ability to steal from others.

Trump’s Republican-engineered shutdown that allowed no Democratic input is his latest theft. Refusing to negotiate the continuing resolution (CR) with Democrats caused the shutdown, which will give Trump an excuse for even more job losses, cost-cutting and closing of government services, as well as essential services for social security, Medicare and Medicaid, while downsizing Obamacare benefits by as much as 70 percent.

It’s becoming obvious that Trump and his Republican accomplices are stealing as much as they can from the American people in his second term.

Americans are paying in a big way. Higher everyday prices to begin with for groceries, energy, and even higher interest rates. The Federal Reserve has been reluctant to lower interest rates until now because of the rising inflation levels due to the rising costs from Trump’s tariffs.

His thievery has been well documented, lately in Susanne Craig and Russ Buettner’s best seller, Lucky Loser, How Donald Trump Squandered His Father’s Fortune and Created the Illusion of Success, that documents the con artist he really is.

“Donald Trump came to be imbued with a host of attributes that speak to how we confer status and admiration in modern America. Our awe of celebrity. Our tendency to conflate the trappings of wealth with expertise and ability. Our eagerness to believe people of apparent status will not lie to us. Our inability to distinguish the fruits of hard work from those of sheer luck.”.

It's a sordid tale, because he has stolen from friends and foes alike. So why have Republicans allowed the wholesale stealing, who were once the party of President Nixon that signed the U.S. Environmental Protection Agency into law?

It is only possible because of the intentional dumbing down of a political party that came to rely on conspiracy theories instead of facts, according to conservative journalist Matt Lewis in his 2016 best-seller, Too Dumb to Fail:

“Somewhere between Ronald Reagan’s “A Time for Choosing” speech in support of Barry Goldwater in 1964 and the most recent government shutdown, the conservative movement became neither conservative nor a movement. Hijacked by the divisive and the dumb, it now finds itself hostage to emotions and irrational thinking.”

Why? Because it became the party of the super wealthy that could only maintain power by hiring the “divisive and dumb”, as Trump has done, to run the Republican Party and his government.

Trump’s recommendation of bleach injections and the downplay of mask use to treat the COVID-19 pandemic were an attempt to dumb down his electorate, and many MAGA supporters died because of it.

Author Tony Schwartz attributed Trump’s inability to focus on any subject for more than a few minutes to his short attention span. But the chaos that followed disguised his real intentions; to steal from whomever he is dealing with, such as the students of his faux Trump University, the workers he never paid that built his Atlantic City casinos, multiple bankruptcies, and his own charitable foundation that he milked for his own use.

Why would one political party become so devoid of basic truths that they follow a man who says climate change is a hoax while experiencing more frequent floods, fires, tornadoes and rising sea levels with their own eyes?

How many more jobs will be lost, more natural disasters and pandemics and even recessions will occur, before the Republican Party base realizes they’ve been conned and want to become part of a democratic system again in which all are treated equally under the law and our constitution?

It’s what wannabe dictators do to stay in power, if their electorate will allow it.

Harlan Green © 2025

Follow Harlan Green on Twitter: https://twitter.com/HarlanGreen

The Return of Stagflation

 The Mortgage Corner

“From the same month one year ago, the PCE price index for June increased 2.6 percent. Excluding food and energy, the PCE price index increased 2.8 percent from one year ago.” BEA.gov

FREDpceinflation

President Trump hasn’t succeeded in convincing the Federal Reserve to cut interest rates or fired Chairman Jerome Powell just yet. So he fired the head of the Labor Department’s Bureau of Labor Statistics without cause that published the weak July unemployment report instead.

It is heralding another era of stagflation that has destroyed the wealth of too many Americans.

It now looks like he wants to recreate what happened to two other Republican Presidents—manipulating the data to disguise the fact that looming inflation can be a big problem as it was in the stagflation of the 1970s and housing bubble and Great Recession of 2008 that was the worst economic downturn since the Great Depression.

President Nixon first tried it when combatting the looming oil price-inspired inflation from the Arab Oil Embargo by fixing prices to keep them artificially low, then pushed his Fed Chair Arthur Burns to keep interest rates low in the face of slowing economic growth caused by the OPEC embargo.

It resulted in 14 percent inflation in 1980 that caused then Fed Chair Paul Volcker to raise the Fed Funds rate to 20 percent, resulting in two recessions early in President Reagan’s tenure.

President GW Bush also tried it in 2000 by pushing then Fed Chair Alan Greenspan to keep interest rates low to finance his wars on terror. Greenspan held interest rates too low for too long, which resulted in the housing bubble and Great Recession that followed.

And now Trump is looking for a successor to the Senate-vetted BLS official, Dr. Erika McEntarfer, who will manipulate employment statistics for him. The result will be less trusted unemployment reports, masking the effects of historically high tariffs that will again create product shortages and slow economic growth.

The Labor Department’s unemployment report understated what happened in the past three months, as I said last week. The U.S. economy created 73,000 nonfarm payroll jobs, but just 19,000 and 14,000 payroll jobs in revisions to May and June totals when more data came in (see graph).

The change in total nonfarm payroll employment for May was revised down by 125,000, from +144,000 to +19,000, and the change for June was revised down by 133,000, from +147,000 to +14,000, per the BLS.

Trump’s main reason for wanting to manipulate economic facts? He also wants to hide the damage to the employment numbers from what could be the loss of one million immigrants leaving the adult labor force, many of them running for cover because of the Gestapo tactics of Trump’s Homeland Security masked Storm Troopers breaking into homes and businesses to round up as many undocumented immigrants as possible, as I said last Friday.

It’s really the first indication of the immigrant’s importance in our economy, and why most of July’s hiring was in healthcare (55,000) while government employment lost 12.000 jobs and -87,000 jobs this year.

The next economic shoe to drop will be the changing of the guard at the Federal Reserve. Trump could not bully Fed Chair Powell to lower interest rates sooner, but that will soon change when he appoints a new Fed Chairman.

He will want to politicize the Fed as he is doing to the rest of the federal government when Powell steps down next year, so that he can enact more Republican ‘trickle down’ economic policies first initiated by President Reagan: in particular the tax cuts + deregulation that supposedly increases efficiencies and productivity, but instead increased corporate CEO pay to more than 300 times that of their employees while weakening union collective bargaining laws.

The results of ‘trickle-down’ economics have been frightfully obvious for decades. The Reagan-era creation has succeeded in maximizing profits of the owners of capital and corporate CEOs while suppressing incomes of salaried workers via right to work laws and low minimum wages, mostly in the poorest Republican controlled red states.

It’s why economists are now calling this the second Gilded Age. We are seeing the results—higher inflation and slowing economic growth once again unless a majority of Americans can be convinced to stop the steal of the worst robber baron of all.

Harlan Green © 2023

Follow Harlan Green on: https://twitter.com/HarlanGreen

Why Nations Fail

 Popular Economics Weekly

Amazon

The Nobel memorial prize in economics was awarded Monday to Daron Acemoglu, Simon Johnson and James A. Robinson for research that explains why societies with poor rule of law and exploitative institutions do not generate sustainable growth, as with some U.S. states as well.

Whereas the peoples of more democratic countries with institutions answerable to their citizens are more prosperous than those with weak democratic institutions, such as North Korea, Mexico, Russia, and even China, say the authors of Why Nations Fail, Daron Acemoglu and James Robinson, two of the new Suth Nobel Laureates.

“Reducing the vast differences in income between countries is one of our time’s greatest challenges. The laureates have demonstrated the importance of societal institutions for achieving this,” said Jakob Svensson, chair of the Committee for the Prize in Economic Sciences.

The authors use the example of the twin cities of Nogales, Texas and Nogales, Sonora, Mexico. Anyone driving across the border can see the difference. Nogales, Texas has three times the income level, better roads, schools, and better law enforcement to protect its citizens than Nogales, Sonora that has been ruled by drug cartels.

The contrast between North and South Korea is even greater—a prosperous South Korean government elected by its citizens vs. a North Korean dictatorship that has literally starved its people to keep one family in power.

It’s also a devastating analysis of why we have a partisan divide between red vs. blue states that Republican Parties have been able to capitalize on by falsely rationalizing the reason for their differences; especially economic rationalizations.

It is a case of the exploiters—wealthy individuals who don’t like to share their wealth—blaming a Washington elite that has dominated most government institutions since World War Two.

The truth is Republican Party economic programs have performed badly; causing massive deficits from tax cuts without concomitant growth that would pay for the tax cuts that have made the red states they govern poorer; because Republicans have adopted policies designed to weaken governmental institutions that are protected by the rule of law.

Republicans began to actually break laws with President Nixon’s Watergate break-in, President Reagan’s secret Iran-contra weapon shipment to Khomeini’s Iran, and GW Bush’s fabrications about Sadam Hussein’s weapons of mass destruction that justified the invasion of Iraq.

It has culminated with Donald Trump and the Republican Party’s outright contempt of laws and even the constitution in not accepting its loss to Democrats and Joe Biden in 2020.

This is born out in the major thesis of this year’s Nobel Prize-winners: that so-called illiberal democracies with central governments only answerable to a powerful minority rather than a majority of its citizens have performed poorly.

Georgetown Public Policy Review

A Georgetown Public Review measured the different median household incomes of red and blue states in the U.S.--$74,000 in blue states vs. $60,000 in red states. It’s in part because most red states have lower minimum wages, and fewer social services such as healthcare for their citizens. And even those social services are mostly subsidized by the federal government.

It is why democracies work best when they follow economic rules that serve the majority, and most in danger when attempts are made to weaken or discredit their institutions. The choice for Americans in the upcoming Presidential election should be clear—belong to a party and vote for a country that works for all of its citizens.

Harlan Green © 2024

Follow Harlan Green on Twitter: https://twitter.com/HarlanGreen

Martin Luther King Jr.’s Call for Peace

Answering the Kennedys’ Call

Daily Kos

Martin Luther King, Jr. was assassinated on April 4, 1968, and his loss is felt even more than 50 years later as we continue to fight wars both foreign and domestic. He was organizing a march on Washington when he was killed. Who knows what might its effect have been on the Vietnam War if he had lived and mobilized America to end the war sooner?

King called it the Poor People's Campaign, said a Daily Kos commentator on Monday’s Martin Luther King, Jr. Day. He wanted to dramatize the suffering of the nation's poor by bringing them to the capital. Poor people would live together on the National Mall - the long strip of land between the U.S. Capitol and the Lincoln Memorial - and engage in widespread civil disobedience. King wanted to force the federal government to deal with poverty.

MLK gave a speech on 4 April, 1967 to over 3,000 at New York’s Riverside Church that is memorialized at Stanford’s Martin Luther King, Jr. Research and Education Institute.  King’s address emphasized his responsibility to the American people and explained that conversations with young black men in the ghettos reinforced his own commitment to nonviolence.

The Vietcong's TET Offensive of January 30, 1968 had just happened, which was when Americans first realized that we weren’t winning the Vietnam War. Robert Kennedy, campaigning in Indianapolis, gave an impromptu speech on learning of his death:

“What we need in the United States is not division;: said Kennedy, "what we need in the United States is not hatred; what we need in the United States is not violence and lawlessness, but is love, and wisdom, and compassion toward one another, and a feeling of justice toward those who still suffer within our country, whether they be white or whether they be black. So I ask you tonight to return home, to say a prayer for the family of Martin Luther King -- yeah, it's true -- but more importantly to say a prayer for our own country, which all of us love -- a prayer for understanding and that compassion of which I spoke.”

Robert Kennedy was assassinated two months later on June 5, 1968, just after he was declared the winner in the South Dakota and California presidential primary of the 1968 election. It looked like he would ride the Kennedy tide to become President, instead of Richard Nixon, who managed to prolong the war until 1974 and his impeachment.

These were our visionary leaders of that time we remember for what they stood for—that one day we may realize their hope for a peaceful America.

Harlan Green © 2019

Follow Harlan Green on Twitter: https://twitter.com/HarlanGreen