from David Ruccio
President-elect Donald Trump has inherited an economy that is as divided as the electorate. The question is, what will that economy look like if and when Trump’s right-wing national-populist promises and post-election proposals are enacted?
As I have shown in the three installments of the first part of this series, “Class Before Trumponomics” (here, here, and here), over the course of recent decades and continuing through the crash and recovery, the class nature of the U.S. economy was transformed in dramatic fashion. Capital was able to pump more surplus out of U.S. workers and, through the combined processes of financialization, globalization, and concentration, to capture more of the surplus from workers both at home and around the world. Labor, too, was radically transformed—and weakened by many forces, including automation, declining unionization, ethnic and racial disparities, immigration, and a low minimum wage. Overall, underlying the grotesque levels of inequality that characterize the United States have been the opposing forces of an increasing capital share and a declining labor share.
That’s what the U.S. economy looks like as Trump celebrates his victory and, along with his Cabinet, economic team, and a new Republican Congress, develops a set of economic plans to “make America great again.”
What will things look like moving forward? There is, of course, a high degree of uncertainty concerning the changes we can expect from the Trump administration’s proposals. For a variety of reasons, we don’t know what those proposals will be—not only because Trump put forward different versions of his “promises” (and, in some cases, like saving the Carrier plant jobs, he didn’t even remember he’d made such a promise on the campaign trail), but also because his Cabinet members and the Republican Congress have their own ideas of what they’d like to do. Plus, unexpected developments in the United States and around the world will surely require changes to whatever proposals are formulated or implemented. Read more…