17 December 2017

Al Jazeera: Trump, tribalism and the end of American capitalism

A strong market economy needs a robust middle class, mechanisms for upward mobility, and clear rule of law to grow and sustain itself over time. US President Donald Trump has little allegiance to any of these.

In the rush to fulfil campaign promises and sate the greed of corporate backers, Trump and his Republican enablers are re-organising US tax policy in favour of the rich, gutting regulations and higher education, and ignoring long-standing norms and protections against conflicts of interest. [...]

In the early 20th century, carmaker Henry Ford understood that the US economy worked best when you have a thriving middle-class. In fact, part of his rationale for raising wages was his implicit understanding that the company needed a middle class consumer base that would buy the Model T vehicles that Ford plants were producing. [...]

Racism functions a lot like tribalism in other contexts because it fosters pre-capitalist thinking. Rather than voting along class-based lines formed by shared economic interests, both tribalism and racism foster group thinking that cuts across class lines. As such, poor white workers are led to believe that they have more in common with their white capitalist bosses than their fellow workers of colour. [...]

Living in a country where the president remains heavily invested in businesses he promotes regularly and has a son-in-law as a key adviser, does not feel like the country I used to know as the US. While the US business sector may always seek to lower costs and maximise profits, it also needs a robust consumer base, a well-educated workforce, and an even-handed state to apply rules and regulations and hold all actors to the same standard.

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