Donald Trump's sales pitch was that, as a businessman, he knew how to get things done. His first thirty days in the White House suggest that he doesn't know how to get anything done. But Joe Stiglitz suggests that, when it comes to economic relations between nations, Trump threatens to get a lot of things undone.
While there is some debate about the extent to which Trump is a “successful businessman,” there is no successful country that is grounded on the principles—or the lack of principles—upon which he has grown his businesses. Economists believe that a successful economy is based on trust, backed up by the rule of law. His standard business practice has been to stiff his suppliers, knowing that recourse to courts is expensive. Of course, over the long term, honest suppliers know this, and refuse to deal. Less scrupulous vendors overcharge and cheat, taking advantage too of the imperfections in our judicial system. But there is no successful economy based on the Trump model.
Trump's inability to tell the truth is particularly problematic:
Trump cannot even be trusted to base statements on reality. He seeks to build himself up by belittling his predecessor. Trump is wrong in his characterization of where the U.S. economy is today. The country as a whole has never had a higher G.D.P. The crime rate and the unemployment rate are markedly lower than they were eight years ago. Yes, America faces a variety of problems—it always has, and what nation doesn’t? Ordinary citizens have not been well served by globalization. The problem, though, is not with globalization itself but with how we have managed it.
So far, globalization has been very unfair. But playing for all the marbles will not improve it. And playing for all the marbles is the only thing that Trump knows how to do.
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