October 30, 2024
On Friday, October 25, at a town hall held on his social media platform X, Elon Musk told the audience that if Trump wins, he expects to work in a Cabinet-level position to cut the federal government.
He told people to expect “temporary hardship” but that cuts would “ensure long-term prosperity.” At the Trump rally at New York City’s Madison Square Garden on Sunday, Musk said he plans to cut $2 trillion from the government. Economists point out that current discretionary spending in the budget is $1.7 trillion, meaning his promise would eliminate virtually all discretionary spending, which includes transportation, education, housing, and environmental programs.
Economists agree that Trump’s plans to place a high tariff wall around the U.S., replacing income taxes on high earners with tariffs paid for by middle-class Americans, and to deport as many as 20 million immigrants would crash the booming economy. Now Trump’s financial backer Musk is factoring in the loss of entire sectors of the government to the economy under Trump.
Trump has promised to appoint Musk to be the government’s “chief efficiency officer.” “Everyone’s going to have to take a haircut.… We can’t be a wastrel.… We need to live honestly,” Musk said on Friday. Rob Wile and Lora Kolodny of CNBC point out that Musk’s SpaceX aerospace venture has received $19 billion from the U.S. government since 2008.
An X user wrote: “I]f Trump succeeds in forcing through mass deportations, combined with Elon hacking away at the government, firing people and reducing the deficit—there will be an initial severe overreaction in the economy…. Markets will tumble. But when the storm passes and everyone realizes we are on sounder footing, there will be a rapid recovery to a healthier, sustainable economy. History could be made in the coming two years.”
Musk commented: “Sounds about right[.]”
This exchange echoes the prescription of Treasury Secretary Andrew Mellon, whose theories had done much to create the Great Crash of 1929, for restoring a healthy economy. “Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate,” he told President Herbert Hoover. “It will purge the rottenness out of the system. High costs of living and high living
will come down. People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up the wrecks from less competent people.”
Mellon, at least, was reacting to an economic crisis thrust upon an administration. Musk is seeking to create one.
Today the Commerce Department reported that from July through September, the nation’s economy grew at a solid 2.8%. Consumer spending is up, as is investment in business. The country added 254,000 jobs in September, and inflation has fallen back almost to the Federal Reserve’s target of 2%.
It is extraordinarily rare for a country to be able to reduce inflation without creating a recession, but the Biden administration has managed to do so, producing what economists call a “soft landing,” rather like catching an egg on a plate. As Bryan Mena of CNN wrote today: “The US economy seems to have pulled off a remarkable and historic achievement.”
Both President Joe Biden and Democratic presidential nominee Vice President Kamala Harris have called for reducing the deficit not by slashing the government, as Musk proposes, but by restoring taxes on the wealthy and corporations.
As part of the Republicans’ plan to take the country back to the era before the 1930s ushered in a government that regulated business and provided a basic social safety net, House speaker Mike Johnson (R-LA) expects to get rid of the Affordable Care Act.
At a closed-door campaign event on Monday in Pennsylvania for a Republican House candidate, Johnson told supporters that Republicans will propose “massive reform” to the Affordable Care Act, also known as “Obamacare,” if they take control of both the House and the Senate in November. “Health-care reform’s going to be a big part of the agenda,” Johnson said. Their plan is to take a “blowtorch to the regulatory state,” which he says is “crushing the free market.” “Trump’s going to go big,” he said.” When an attendee asked, “No Obamacare?” he laughed and agreed: “No Obamacare…. The ACA is so deeply ingrained, we need massive reform to make this work, and we got a lot of ideas on how to do that.”
Ending a campaign with a promise to crash a booming economy and end the Affordable Care Act, which ended insurance companies’ ability to reject people with preexisting conditions, is an unusual strategy.
A post from Trump last night and another this morning suggest his internal polls are worrying him. Last night he claimed there was cheating in Pennsylvania’s York and Lancaster counties. Today he posted: “Pennsylvania is cheating, and getting caught, at large scale levels rarely seen before. REPORT CHEATING TO AUTHORITIES. Law Enforcement must act, NOW!”
Trump appears to be setting up the argument he used in 2020, that he can lose only if he has been cheated. But it is increasingly apparent that the get-out-the-vote, or GOTV, efforts of the Trump campaign have been weak. When Trump’s daughter-in-law Lara Trump and loyalist Michael Whatley became the co-chairs of the Republican National Committee in March 2024, they stopped the GOTV efforts underway and used the money instead for litigation. They outsourced GOTV efforts to super PACs, including Musk’s America PAC.
In Wired today, Jake Lahut reported that door-knockers for Musk’s PAC were driven around in the back of a U-Haul without seats and threatened with having to pay their own hotel bills if they didn’t meet high canvassing quotas. One of the canvassers told Lahut that they thought they were being hired to ask people who they would be voting for when they flew into Michigan, and was surprised to learn their actual role. The workers spoke to Lahut anonymously because they had signed a nondisclosure agreement (a practice the Biden administration has tried to stop).
Trump’s boast that he is responsible for the Supreme Court’s overturning of the 1973 Roe v. Wade decision recognizing the constitutional right to abortion is one of the reasons his support is soft. In addition to popular dislike of the idea that the state, rather than a woman and her doctor, should make decisions about her healthcare, the Dobbs v. Jackson Women’s Health Organization decision is now over two years old, and state examinations of maternal deaths are showing that women are dying from lack of reproductive healthcare.
Cassandra Jaramillo and Kavitha Surana of ProPublica reported today that at least two pregnant women have died in Texas when doctors delayed emergency care after a miscarriage until the fetal heartbeat stopped. The woman they highlighted today, Josseli Barnica, left behind a husband and a toddler.
At a rally this evening near Green Bay, Wisconsin, Trump said his team had advised him to stop talking about how he was going to protect women by ending crime and making sure they don’t have to be “thinking about abortion.” But Trump, who has boasted of sexual assault and been found liable for it, did not stop there. He went on to say that he had told his advisors, “I’m going to do it whether the women like it or not. I am going to protect them.”
The Trump campaign remains concerned about the damage caused by the extraordinarily racist, sexist, and violent Sunday night rally at Madison Square Garden. Today the campaign seized on a misstatement President Biden made when condemning the statement from the Madison Square Garden event that referred to Puerto Rico as a “floating island of garbage.” They tried to turn the tables to suggest that Biden was calling Trump supporters garbage, although the president has always been very careful to focus his condemnation on Trump alone.
In Wisconsin today, when he disembarked from his plane, Trump put on an orange reflective vest and had someone drive him around the tarmac in a garbage truck with TRUMP painted on the side. He complained about Biden to reporters from the cab of the truck but still refused to apologize for Sunday’s slur of Puerto Rico, saying he knew nothing about the comedian who appeared at his rally.
This, too, was an unusual strategy. Like his visit to McDonalds, where he wore an apron, the image of Trump in a sanitation truck was likely intended to show him as a man of the people. But his power has always rested not in his promise to be one of the people, but rather to lead them. The pictures of him in a bright orange vest and unusually dark makeup are quite different from his usual portrayal of himself.
Indeed, media captured a video of Trump’s stunt, and it did not convey strength. MSNBC’s Katie Phang watched him try to get into the truck and noted: “Trump stumbles, drags his right leg, almost falls over, and tries at least three times to open the door…. Some transparency with Trump’s medical records would be nice.”
The Las Vegas Sun today ran an editorial that detailed Trump’s increasingly obvious mental lapses and concluded that Trump is “crippled cognitively and showing clear signs of mental illness.” It noted that Trump now depends “on enablers who show a disturbing willingness to indulge his delusions, amplify his paranoia or steer his feeble mind toward their own goals.” It noted that if Trump cannot fulfill the duties of the presidency, they would fall to his running mate, J.D. Vance, who has suggested “he would subordinate constitutional principles for personal profit and power.”
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Notes:
https://www.axios.com/2024/10/30/gdp-report-q3-release-economy-inflation
https://www.cnn.com/2024/10/30/economy/us-economy-gdp-q3/index.html
Herbert Hoover, The Memoirs of Herbert Hoover: The Cabinet and the Presidency, 1920–1933 (New York: Macmillan, 1952), pp. 30–31.
https://talkingpointsmemo.com/edblog/whats-going-on-with-trumps-outsourced-gotv-effort
https://www.wired.com/story/elon-musk-america-pac-blitz-canvassing-michigan-uhaul/
https://www.propublica.org/article/josseli-barnica-death-miscarriage-texas-abortion-ban
https://www.nytimes.com/2024/10/31/us/politics/trump-women-like-it-or-not.html
https://lasvegassun.com/news/2024/oct/30/trumps-decline-has-been-alarming/
X:
MattGertz/status/1851234525881176397
What a dystopian nightmare will be unleashed on the country should Trump and the MAGA contingent that fawns at his feet prevail in the election.
Thank you Professor Richardson.
The implications of another Trump Presidency are profound for the United States and the rest of the world. Too many rabid cult followers who have little understanding of foreign and domestic policies consider the election to being an abstract sporting event with no bearing on their quality of life, or the future. They want their "team" to win to "Own the Libs" without an understanding that the harm to the most vulnerable -children, seniors, women, BIPOC, and the impoverished will be real and the harm will have no concern as to the political ideology of those in its path.
The election is a navigation point in which we choose a path for our society. Are we to repeat the history of 1929 by implementing the same economic policies? Are we to repeat the history of the 1930's in which the world was at war (and this time we can momentarily see if Daniel Ellsberg was right about human survivability in the face of a nuclear winter).
This is not about Red v. Blue. It is not about conservative v. liberal. This is about good governance and building upon a foundation of economic growth driven by the middle class versus a self-enriching corrupt criminal organization that seeks to continue to divide and weaken the United States while shifting as much wealth as possible to the Elon Musk's, Donald Trump's and JD Vance's of the world.