I know you don’t agree, Dan, but in my view, we were headed in the wrong direction in 2016 when Trump entered office. Due to a shrinking manufacturing base, we were in the process of transitioning from a manufacturing economy into a service industry economy. High paying manufacturing jobs were being shipped off to Mexico, China and India and replaced with low paying service jobs--all to the benefit of well-to-do consumers.
The movement of manufacturing jobs abroad was basically a result of our high corporate taxes as compared to low corporate taxes abroad (usually subsidized further by the governments aboard) which, of course, encouraged American corporations to seek manufacturing operations abroad. Manufacturing jobs were further eroded due to tax policies that allowed products to be imported duty free on the basis that the imported products were already taxed abroad. The result was that we had shrinking tax receipts despite high tax rates.
With low wages and taxes abroad, corporations could pass a portion of the savings that resulted from these cheap imports onto consumers who were the beneficiaries. This made both the corporations and rich consumers happy. However, this was on the backs of workers many of whom lost well-paying manufacturing jobs and were forced to take lower paying service jobs (if they were lucky enough to find the low paying jobs). In addition to this, a large immigrant population was forcing additional downward pressure on wages for some previously well-paying jobs. The result was that the rich were getting richer and the poor were getting poorer.
In the last three years, this trend has been reversed due entirely to the policies of the Trump Administration. A combination of reduced corporate taxes on items manufactured domestically as well as tariffs on items manufactured abroad has had the effect of bringing jobs back to America. It is true that large numbers of jobs created in this economy have been service jobs, but a significant number have been the higher paying manufacturing jobs.
The bottom line for me is that I couldn't care less about Garland or conservative Republicans or what Trump might do after he is President. I am not overly concerned about the deficient. With an expanding economy, we can handle more debt. I really don't care that Mitch McConnell plans to keep his hands off Trump's defense in the Senate or that he knows how to count votes. All I really care about right now is that Trump be allowed to continue his stewardship of the American economy.
Best Regards, Cliff
