Time to get used to the idea of Trump’s return

Picture: Scottsdale Mint

Back in 2021 it had seemed impossible for Donald Trump to return to the White House. Even in 2022 it seemed that his brand was diminished – as candidates he endorsed did badly in Congressional elections. But we should have known better. For the first time in his political career, the man looks unstoppable. We must now think what many of us liberals had thought unthinkable: he will be President again.

Pretty much everybody I know regards the prospect of a repeat Trump presidency with horror, including a handful of Americans. Some Britons do like Trump, but most treat him as a bit of a joke – a caricature of the worst American stereotypes, and transparently narcissistic. This country has had enough of un-serious politicians after the chaotic period of Boris Johnson’s ministry, and his successors’ indulgence in gesture politics. It is one reason that Sir Keir Starmer’s popularity ratings are now high – seriousness is his most demonstrable virtue. You don’t have to be a liberal here in order to dislike Trump.

But it is clearly different in America. The first way that Mr Trump has been able to make a comeback is that he has fired up a supporter base that has enabled him to take over the Republican Party. He has made short work of his rivals, and any Republican law-maker that doesn’t pay homage to him will have their careers quickly terminated. Mr Trump has been able to forge a special bond with this supporters. He plays on their sense of grievance, and the feeling that the political establishment despises them (which they often do…). This seems is intuitive – I have called him a right-brained genius – following the once-fashionable idea that people are a product of a rational left brain and an emotional and instinctive right one. The irony is that this idea was promoted by liberal types to suggest that Western culture was excessively left-brained and destroying the world – and that the world needed more right-brained thinking. Alas this analysis turned out to be too left-brained.

The interesting thing about Mr Trump’s genius is that other conservative politicians have been unable to replicate it. Ultimately they are too calculating and they can’t hide it, and that undermines their authenticity. That fate has befallen Florida Governor Ron De Santis, once billed as being more dangerous, because more rational. We will have to see how Mr Trump’s Vice Presidential pick JD Vance works out. He is clearly a calculating man, but he gets much closer to his boss’s rhetoric than Mr De Santis did – and his empathy with white working class Americans is authentic.

The second reason for Mr Trump’s comeback lies with the current President, Joe Biden. He did well to beat Mr Trump in 2020 – and he has been highly effective in office. Too effective, perhaps. A narrow victory in a campaign that was mainly about the fitness for office of his opponent was not a mandate for many of the radical measures that he brought forward. There were two particular problems. The first was that inflation got out of hand on his watch. Some of the blame may lie with the fiscal generosity of his predecessor, and some arose from international events – but Mr Biden threw in plenty of fiscal generosity of his own. Inflation is now back under control (apparently) but it has left deep scars in its wake, notably with interest rates still high, and petrol prices over 20% higher than in his first year of office. Mr Biden’s supporters like to paint a rosy picture of their man’s economic achievements – but no amount of aggregrate economic statistics can mitigate the pain that many American people have gone through. The second major problem is the chaotic scenes on the border. Now I haven’t been following that particular issue closely, and it is clearly being hyped up by the Republicans – but there does seem to have been a lack of focus by the Biden administration in its attempts to play a number of competing interests.

And then there was the question of Mr Biden’s lack of physical fitness for office. His disastrous debate performance with Mr trump only confirmed what many people had suspected. As I write, he has now thankfully bowed out – but only after an obstinate period of denial. His likely replacement candidate is the Vice President, Kamala Harris. She doesn’t get a very good press (though how justified that is I find hard to assess). My feeling is that she would do a better job than Biden of mobilising the Democrat base, especially younger voters, but will struggle with neutral voters. But the Democrats campaign has lost momentum, and will need to be completely reset.

I don’t think Mr Trump’s survival of the assassination attempt will make more than a marginal difference. It gave him some momentum at a useful time, which doubtless helped bring some donations in. But he and his party reverted to type so quickly afterwards that surely few voters will be swayed.

Mr Trump still has those two big points in his favour: the economy and the border. For some reason many American voters, even those who are otherwise sceptical of Mr Trump, think that he is a better bet for managing both issues than whoever the Democrats throw up. In the case of the economy, that’s a bit bizarre. He plans to raise prices for ordinary Americans by imposing tariffs, while reducing taxes for the better off by adding to the national debt. Reducing immigration, if he succeeds, may make things worse by raising inflation – though it could help lower-paid workers. Still, the idea that a businessman is well-placed to manage the economy a strong one in America. And if Mr Trump’s record as a businessman is a flawed one, years of starring in The Apprentice have clearly impressed many Americans.

And as for the threat Mr Trump poses to American institutions, many Americans clearly don’t think he will be that bad in practice – and perhaps those institutions have been corrupted anyway. The only criminal convictions that Mr Trump has so far suffered were from a distinctly dubious case legally, giving some substance to Mr Trump’s accusations of “lawfare” against him. Other cases may be stronger but the American judiciary has played along with his efforts to kick them into the long grass. Mr Trump has never made himself out to be a saint, even if he sometimes claims to be an instrument of God.

So what are the consequences for us Europeans if Mr Trump succeeds? The most serious is the war in Ukraine. Most European leaders want wear the Russians down, and force them to conclude the war on terms that they cannot paint as victory – and so weakening their threat. They hope that Mr Trump can be manoeuvred into supporting this – but they know it is unlikely. More likely is that he will force Ukraine into a ceasefire. Russia is then likely to regroup and rearm – although it is possible that the enormous cost of the war will start to rebound on Vladimir Putin’s regime. The European powers will have to reorganise their defences, and reduce their dependence on US weaponry.

Economically the main threat is Mr Trump’s proposed tariff regime – but the main economic damage is likely to be wrought on the Americans themselves, and then their neighbours in the Americas and Asia. But it is unlikely to help Europe’s struggling economies – hastening the awkward political choices that permanent low growth will entail.

A difficult four years beckon. It may not come to that, of course. The last month or so have already shown how fast politics can move. Mr Trump seems to have taken his recent successes as as justifying his continued focus on his base – rather than softening his image to appeal to uncommitted votes. If his opponents can succeed in making the threat of a Trump regime look less abstract – by focusing on concrete issues like abortion, rather abstract ones like “democracy” and “the rule of law”, and if their candidate looks properly presidential, more sceptical voters can be persuaded to vote him down. Perhaps, even, he will go too far and look start looking more dangerously deranged, even to some of his erstwhile supporters. We have been hoping for that for eight years, though, and nothing he does seems to faze his base.

Americans will do what Americans will do. We in Europe will just have to live with whatever they choose to do. That’s democracy, I’m afraid.

Postscript: 23 July

The news that Joe Biden was withdrawing broke while I was finishing the article. Anxious to publish, I edited it without changing the overall thrust. But the whole dynamic of the contest seems to have changed. Kamala Harris has launched her campaign built up real momentum – it looks as if she will be chosen without contest. The Trump campaign seems to have been wrong-footed. They have no shortage of attack lines on Ms Harris, whom they despise as much as her boss. But the main ones look weaker than the focus on mr Biden’s capacity, while the Democrats have some attack opportunities of their own: capacity issues can be turned back on Trump, and maybe they will even get a chance to attack some of Mr Trump’s policies – like his disastrous looking economic ideas. Alas Ms Harris’s early attack lines seem to focus on Mr Trump’s criminality and lack of moral fibre. That’s old news and won’t sway many, surely. Matt Goodwin, who had been predicting a Trump landslide, meanwhile rushed out an article suggesting that Ms Harris is an even more hopeless candidate than Mr Biden.

It will be a couple of weeks before we see if Ms Harris is making a serious impact on Mr Tump’s lead. American voters have a way of bringing me down to earth, so my wiser self is saying that the main thrust of my article still stands – even if my optimistic self thinks that the spring in the step that Ms Harris is showing must have some sort of positive effect.

Joe Biden has made a strong start

“Cometh the hour, cometh the man,” is what I wrote when Joe Biden was elected US President last November. I had a good feeling about the man because Mr Biden looked to be somebody who confronts the world as it really is, rather than on some projection based on conviction, as more partisan politicians do. It is going better than I expected.

In that post I said that the new president needed to do three things: revive the economy, get on top of the virus, and put pressure on the Republicans. On all three counts he is doing well. He has been lucky, but he has helped to make that luck. We can now see that this is the job he has wanted to do all his political life. He was ready for it. It turns out that being a Vice President is good preparation for the Presidency, especially at the start. The last Vice President to make it to the top was George Bush Senior in 1988; he proved very effective at the job, even if he was less effective at the politics. Before that we might remember Richard Nixon and Lyndon Johnson, also very effective operators. Mr Biden knows how the machinery of government works and was well prepared by the time inauguration came, notwithstanding the tardy cooperation of the outgoing administration.

Mr Biden has also proved an adept politician. He made a good start before he took office when the Democrats took both the Senate run-off elections in Georgia. The Republicans had been favourites. How much he can take personal credit for this is hard to say – but he clearly didn’t get in the way. That gave him control of the Senate by the narrowest possible margin. He has used it skilfully. His biggest achievement has been pushing through a massive economic stimulus bill. He now has two more ambitious efforts involving massive outlays: an infrastructure plan and welfare reforms. He has not sought to build bridges with the Republicans, in the way that Barack Obama wasted so much time doing, but the measures are likely to go down well with many Republican voters, especially the ones that switched to Trump in 2016 and 2020. I can’t see that the welfare changes stand much chance, as they look too strong for conservative Democrats in the Senate – but they should help keep up the pressure.

And the next point about Mr Biden is that he takes decisions, even tough ones, quickly. This is part of being ready for the job, but it is a strong contrast with Mr Trump and Mr Obama, and especially the former’s gaggle of squabbling advisers. A striking example of this has been the decision to withdraw the US military completely from Afghanistan by 11 September. We might well think this is wrong (The Economist argued that keeping on a small commitment would be value for money), but it happened quickly.

But is he taking America in the right direction? One criticism is that he is just rehashing failed policies from the 1970s. This is put quite eloquently by Gerard Baker in The Times. Mr Biden wants to throw a lot of public money at problems, promoting federal agencies and trade unions, in a striking reversal of the prevailing wisdom since Ronald Reagan came to power in 1980 – even if the practice never quite lived up to the rhetoric. There does seem to be something quite old and familiar about this approach. Mr Biden has been compared to Franklin Roosevelt and Lyndon Johnson – falsely because he doesn’t have enough Senate votes to be anything like as ambitious as this pair. His infrastructure plans recall Dwight Eisenhower. These policies just led to stagflation in the 1970s, it is said. But context is all. Big government worked well enough in the 1950s, with the rise of light manufacturing and the bureaucracy of the consumer society – all those salesman, account clerks and insurance administrators. But in the 1960s and 1970s, the economy and society suffered a number of problems. First came the Vietnam war, which the US government refused to finance through taxation, causing the postwar world financial infrastructure to buckle. Then came the malign effects of union inflexibility, which meant that consumer price rises fed through quickly into wage inflation, creating a wage-price spiral. And then came the shock of escalating oil prices in the 1970s, the first important symptom of environmental constraints on the US model of growth. Combine these with big government and you got stagflation.

That was then. Now is a very different world. The wage-price spiral has been broken by the growth of globalisation and the impact of technology. A new world financial infrastructure has emerged. Environmental constraints are being embraced rather than denied. And anyway since 2008 the developed world seems to have been suffering from deficient demand. Interest rates have been cut to rock bottom; there does not seem to be enough positive pressure in the labour market. Nominal jobless rates may look low (slowing for the pandemic), but pay at the lower end is propped up by minimum wages, job insecurity is rife, and people are dropping out of the workforce. Throwing public money at problems could be quite beneficial at such a time, even if it was harmful in the 1970s. And excess public spending is much more likely to get the money to where it is needed that tax cuts.

Still, you don’t have to be on the political right to worry that president is taking things too far. Predictions of a rise in inflation are widespread, though an awful lot of people seem to think that this will work in a similar way to the late 20th Century. One way or another interest rates are likely to rise – a sign of a better balanced economy after all – and this could have some fairly scary consequences in a financial system that seems to take low interest rates and booming asset prices as one of the fundamental rights of man. But it could take some time for any problems to emerge.

A second criticism is that Mr Biden is taking his radicalism too far. He has spoken of bringing America together and healing the partisan divides. But in many ways he is doing the opposite. Much of the Republican base – the wealthy rather than the populous part of it – was horrified by Donald Trump, whose grip on that party shows no sign of weakening. But they will be even more horrified by fear of tax rises, and will doubtless find themselves returning to the party fold. That does not matter that much in terms of votes (these are the top 1% after all, even if you have to add in larger numbers who fancy their chances of entering that elite) – but it means lots of campaign funding to promote misinformation and damaging memes. The Republicans scared a lot of people into voting for them in Congressional races last year by portraying the Democrats as being taken over by the “radical left”. It won’t be too hard to paint Mr Biden’s policies in that light.

A big challenge will come in 2022, when the mid-term elections come. Most commentators already seem to have written the Democrats’ chances off, following what happened to Mr Obama and Mr Trump at the same points in their presidencies. But that can’t be in the plans of a consummate politician like Joe Biden. He clearly feels that his policies can peel away a lot of voters from the Republicans.

And that will make American politics very interesting over the next year and a half. Mr Biden has started well, and he means to keep up the momentum.

Joe Biden: cometh the hour, cometh the man?

I greeted the defeat of Donald Trump in the US Presidential election with relief rather than joy. It was the most important thing to be decided in these elections: but otherwise it was a poor night for the Democrats. That bodes ill for the success of the new administration. But perhaps the new President, Joe Biden, will rise to the occasion.

The first Democratic disappointment was the failure to suppress Mr Trump’s vote more than it did. In fact “suppress” is not the word: Mr Trump’s vote was huge. Victory depended on a series of narrow wins in key states: very similar in character to Mr Trump’s victory in 2016. Based on polling evidence, most people had expected something more decisive. The next disappointment was the Democrats’ failure to secure the Senate. This game isn’t over yet: it will be decided by the double run-off section in early January in Georgia, but the Republicans are favourites. But the Democrats fell short in a whole series of contests where they were expected to do well, and that was the pattern of the night. The Democrats hung on to the their majority in the House in Representatives, but went backwards. They did not make breakthroughs at state level either: important because these elections will affect redistricting for the House. Down-ticket Republicans polled more than Mr Trump.

If the Democrats couldn’t win big this year, when can they? Looked at strategically it the Republicans are winning the battle to be the natural party of government, albeit by a narrow margin. This should worry Democrats a lot. They have long been expecting a demographic dividend, as America becomes less white, and as older, conservative voters die off. Instead Republicans are managing to recruit amongst ethnic minorities. I don’t know what data on younger voters is, but I suspect it follows educational attainment. Less well-educated Americans gravitate towards the Republicans, regardless of race and age, it seems.

This bodes ill for the Democrats in 2024, and of Kamala Harris’s chances in that election if Joe Biden steps down, as expected. There will be a lot of soul-searching. Some want to go down a left-wing populist route, stoking up anger over wealthy elites rigging the system to their advantage. Such a strategy has worked in Latin America (though whether it has done poor voters there any good is another question) – but I don’t think it has traction in America, not least amongst those of Latin American heritage, for whom socialism is often a toxic brand, based on the record of Latin American socialists.

Beyond that, Mr Biden is going to find it very hard to govern. He needs the Senate to unlock major spending initiatives, or legal reforms, for example to health care, or reforms to make it easier to elect Democrats. Nothing in these election results is going to discourage the dominant no-prisoners wing of the Republican Party, represented by the senate leader Mitch McConnell, as well as Mr Trump himself. Republicans will suddenly rediscover their fiscal conservatism and stoke up worries about public debt, conveniently forgotten when Republicans such as Ronald Reagan, George W. Bush or Donald Trump have been in charge. The new administration will be undermined at every turn. And on top of likely control of the Senate, they have stacked the Supreme Court with conservatives. Mr Biden’s appeals for Americans to unite to tackle the country’s problems are entirely futile. Further, Republicans are trying to undermine his legitimacy by saying the election was “stolen”. The extreme partisan nature of US politics will continue.

So what does Joe Biden need to do? The critical things are to revive the economy, get on top of the virus, and put pressure on the Republicans. The economy is critical. Until 2020 this was looking good for Mr Trump. The acid test isn’t the level of the stock market, so beloved of the President, but whether the economy is running hot enough to push up wages and well as create a plentiful supply of less skilled jobs. Mr Trump’s success there doubtless accounts for much of the strength of his support. How much he was actually responsible for this, and how much he was building on his predecessor, we will never know. The virus, of course, is the test Mr Biden has set himself. On both counts luck looks to be on the new President’s. side. The first of the vaccines is coming good, and other promising ones are behind it. This is already having a positive effect on confidence. This means that he is not as reliant as he might of been on Congress to provide funding for the states. The second piece of luck is that the Federal Reserve takes an expansive view of its role in keeping the economy going, and should not jack up interest rates at the first sign of success.

What do I mean by putting pressure on the Republicans? His life will be a lot easier if a small handful of Republican Senators break ranks. It will also be easier if Supreme Court justices also feel a bit of political pressure to appear non-partisan. This dos not mean indulging in the culture wars (on abortion and such matters), which tend to polarise politics and rally the Republican faithful. It does mean keeping the heat up on healthcare and support for “seniors” and veterans. The Republicans aren’t having it all their own way. MrTrump is not going to disappear; surely the party’s stalwarts are going to tire of bowing and scraping to their monarch. Mr Trump is also likely to face a blizzard of lawsuits – though this is unlikely to change public opinion much.

The interesting thing is that of all senior Democrats, Joe Biden seems to understand what needs to be done best. He has it in him to empathise with the average working class Trump supporter. His campaign was very skilful. He is going to need all of that skill in the years ahead. But he knows that. Cometh the hour, cometh the man?