Neoliberal Global Elites Upset Trump isn’t playing their Free Trade game

The global Neoliberal elites have been shook to their core by President Trump’s refusal to no longer give into their free trade demands. With the President’s latest tariffs being on Steel and Aluminum. Free Trade Agreements that devastated and disappeared many manufacturing jobs in the 1990s to the mid 2000s. The backlash that Trump faces comes from several current world leaders including Canadian Prime Minister Justin Trudeau, German Chancellor Angela Merkel, United Kingdom Prime Minister Theresa May, French Prime Minister Emmanuel Macron, and Japanese Prime Minister Shinzo Abe. As well as backlash from many establishment Republicans including former presidential Candidates Senator Ted Cruz, and Wisconsin Governor Scott Walker. As well as Speaker of the House Paul Ryan. Trump even faces backlash from global oil oligarchs and super Republican Mega Donors Charles and David Koch. As for the Democrats, some oppose the “Trump Tariffs”, others support them critically.

Trump faced backlash from many of the established Neoliberal powerhouses throughout the world. To understand this backlash, one must understand both Tariffs and Neoliberalism. Tariffs can be explained as tax on imports. They’re typically charged as a percentage of the transaction price that a buyer pays a foreign seller. CBS news describes it as follows:

“Say an American retailer buys 100 garden umbrellas from China for $5 apiece, or $500. The U.S. tariff rate for the umbrellas is 6.5 percent for umbrellas. The retailer would have to pay a $32.50 tariff on the shipment, raising the total price from $500 to $532.50.”

Basically tariffs encourage consumers to buy products made in their country since the products made in their country won’t have the extra tariff on them, the product will therefore be cheaper. This was how trade worked throughout most of the 20th century. That was until the Neoliberal boom of the 80s.

We must now look at what Neoliberalism is. Neoliberalism is the a political ideology based on full faith in the free market. Neoliberalism has six aspects tax cuts, privatization, austerity, creation of new markets, deregulation, and free trade. All policies that help massive corporations and the super wealthy at the expense of the most vulnerable in society. Neoliberalism ran directly opposed to the dominant economic theory of the Post War years (1945–1980), Keynesian economics. Keynesian economics generally favor a strong welfare state to limit, avoid and assist during times of recession. However, during the late 70s Keynesian economics caused major stagflation and caused the richest 1 percent income to stay nearly stagnate. That is when the policies of Neoliberalism began to show up all over the world. First it was Pinochet in Chile, Thatcher in the UK and Reagan in America. Than the so called “lefty” parties ran to the right to try to win elections. This caused the creation of the “New Democrats” and “New Labor”, it gave us the presidency of Bill Clinton, and the Ministry of Tony Blair, both who ran to the center and at times the center right. The backlash to Neoliberalism begins with the creation of Free Trade and NAFTA, as well as a load of other horrendous anti-worker free trade agreements that passed their after.

That leads us to today, where we have the so called “left” in America, the former president who was accused of being a “communist socialist” by many on the right., pushing free trade deals like the TPP (Trans Pacific Partnership). Like with Brexit in the UK, and the National Front in France, and other far right ideologies that are sprawling all over the world, Trump represented this revolt against the status quo by claiming his opposition to Free Trade Deals on the campaign trail, Free Trade Deals like NAFTA.

Now Trump is making due on his promises of actually being against Free Trade Deals, to many surprise, including my own. This has what caused the world wide out of touch establishment, still caught up in the glory days of Neoliberalism to cower and shake. This unconventionality of not bending to every demand to the world’s economic elites has enraged the global establishment.

Canadian Prime Minister Justin Trudeau, lashed out irrationally at United States plans to impose tariffs on Canadian steel and aluminum for “national security” reasons. He then went on to outlandishly make the argument against the tariffs, by invoking soldiers who had fought and died with American troops in Afghanistan as a justification against the tariffs. This invoking of soldiers is absolutely disturbing, especially considering that apparently using them as pawns in a war, means that you now must obediently give into free trade.

French Prime Minister, and no friend to the workers, Emmanuel Macron who is buddy buddies with Mr. President, called the Tariffs illegal and “a mistake on many points.” Macron went on to say “It is a mistake because it responds to a worldwide unbalance that exists in the worst ways through fragmentations and economic nationalism, I prefer to say things directly and not through the press; and I will tell him what I told you, which are my convictions that he knows already.” Trump has described his French counterpart as “perfect,” “a great guy,” and “a friend of mine.” Macron claims he has ‘Trump whisperer’ abilities, claiming he has a great relationship with the president, and that it was he who convinced Trump to keep US troops in Syria “for the long term.” Lets not forget that Emmanuel Macron is a neoliberal puppet who loves free trade and hates striking workers, a clue from this years massive strikes against Macron attempt to “reform” (privatize) the rail system in France, going all the way.

UK Prime Minister Theresa May let the Donald know his plan was “unjustified and deeply disappointing”, and that they are such close allies that they should continue with their free trade. Theresa May has still been hesitant with the Leave movement of Brexit, which they’ve been taking ever so slowly because of fear of sparking trade war with the EU.

The Japanese Prime Minister Shinzo Abe went on to say “We can’t accept this, from a security perspective, it’s very difficult to understand why this would be imposed on Japan, a military ally.” Notice the similarities between the reasoning of Trudeau and Abe for continuing the free trade. German Chancellor Angela Merkel warned Trump the EU will push back, earlier in April when Tariffs on aluminum and steel where about to no longer be exempt.

The most interesting backlash has come from the corporate neoliberal and neoconservative establishment here, at home, in America. Senator Ted Cruz stated I think tariffs on steel and aluminum are a mistake: “I think there are a lot more jobs in this country that are dependent on steel and aluminum as inputs, and we are going to end up costing more jobs because of the tariffs than will be saved, and that doesn’t even factor into account the retaliatory tariffs that we may see Europe and China and other trading partners do, which could hurt farmers, manufacturers. My hope is that either this doesn’t get implemented, or it gets implemented in a fairly small way.” However this trade deal is being implemented in fairly large way. Apparently Ted Cruz is oblivious and out of touch to how many jobs have been lost to free trade deals over the past two decades.

Wisconsin Governor Scott Walker claimed the tariffs could affect “multiple sectors and industries” in Wisconsin, including MillerCoors, Harley-Davidson, Neenah-based packaging manufacturer Bemis and Seneca Foods, a food processor and distributor with nine plants in the state. Walker claims that Trump’s plan would have the unintended effect of encouraging manufacturers to move their operations out of the US, unlike previous free trade deals right Governor? This is coming after the corporate give away that has been the Foxconn sham, where 13,000 jobs are being created for 3 billion dollars.

Wisconsin Representative and current Speaker of the House Paul Ryan stated he disagrees with this decision,” Instead of addressing the real problems in the international trade of these products, today’s action targets America’s allies when we should be working with them to address the unfair trading practices of countries like China. There are better ways to help American workers and consumers. I intend to keep working with the president on those better options.” Where were those better options? Are you saving those better options for after you retire or is the better option more Free Trade Deals like the TPP Mr. Speaker?

Trump now faces backlash from global oil oligarchs and super Republican Mega Donors Charles and David Koch. Tim Phillips president of a Koch backed group, Americans for Prosperity stated “The Trump administration has taken some incredibly positive steps for the American economy, but tariffs will undercut that progress and needlessly hamstring our full economic potential,”. According to Reuters, the groups said they would advocate that Trump reduce or eliminate trade barriers by modernizing the North American Free Trade Agreement (NAFTA) and returning to the negotiating table on the Trans Pacific Partnership (TPP).The Koch's distanced themselves from Donald Trump in the Republican Primary and the general election, which is a reason why they didn’t plan on spending the 1 billion they originally claimed. Koch's found common ground with the new Republican president on issues including rolling back federal regulations and pulling out of the Paris global climate accord, because you know they own a giant oil company and the more red tape destroyed the easier it is for them to become even more fabulously rich. The Koch brothers have given large sums of money to Paul Ryan ($145,322), Ted Cruz ($788,487), and Scott Walker (53,000 as governor, plus more when he ran for president). They have contributed larges sums to most of the Republican party.

That being said the Democratic party is divided as well on the tariffs. Senate minority leader Chuck Schumer stated he was with the Republicans. But Chuck also stated that he aligned with Trump on trade than he was with Obama, mostly after he realized how unpopular support for the TPP was within their own party. Chuck Schumer stated “President Trump has identified the right opponent, China, much better than both the Obama and Bush administrations did. Both Democrats and Republicans have been blind to this issue, and Trump isn’t”. Schumer, one of the most corporate and establishment of the Democrats in the Senate due to his close Wall Street ties. Senator Kirsten Gillibrand said she would take a look, meaning she opposes tariffs but won’t take a position because it might make her look bad. Sen. Kamala Harris said she “supports fair trade but believes these actions by President Trump will only bring us closer to a trade war that will hurt California jobs and our workforce.” Corporate Cory Booker stated he had strong feelings about the issue but turned down commenting on it, basically because he supports free trade.

Democratic Sen. Sherrod Brown is trumpeting his support for the Tariffs, Sen. Brown is from Ohio where Trump won by 8 points. “I’m working with the president to make these tariffs work,” he told a crowd of Teamsters. Brown stated he had a long time support of Tariffs against his republican opponent who is a long time support of Free Trade is caught in a sticky situation.

Sen. Elizabeth Warren offered a mixed review of the Tariff she stated: “The proposed tariffs take the right approach but they target a narrow section of the economy and put our allies in the same boat as countries like China that cheat constantly on trade, all while the administration ignores the root of the problem,” Elizabeth Warren is part of the “progressive” wing of the Democratic party, and usually one of the front runners of progressive causes along with Bernie Sanders, who stated similar points “I think the main target of our concern has got to be China,”.

The Trump Tariffs have come as a electric shock to the heart of the global Capitalist economy and its ruling class that it protects and upholds. The ruling class which has gotten everything its wanted from Donald Trump, including tax cuts, deregulation, and hand picked corporate swine for Cabinet choices. The ruling class has got its imperialistic tentacles closing in on the countries of Iran, Syria, Russia, Venezuela, China, and North Korea as everyday the coming wars seem ever more near as the empire prepares to expand for resources and never ending war profiteering. Yet, these tariffs show how the Capitalist elites and their puppet politicians are recoiling with their view of tax cuts, and privatization, the ideology of Neoliberalism. They recoil because they fear that it might be the end of their increasing profits and expansive globalized economy. They see these tariffs as a hiccup.

The Neoliberal era has four options to change into. The worst that could happen would be the completion of the Neoliberal policies, elimination of the welfare state, a flat tax, total deregulation. including banning of unions and elimination of minimum wage laws. Worse yet neoliberalism could morph into a new era of Fascist Corporatism, much like that of Mussolini in Italy in the 1920s-1940s. It could get better, the Neoliberal model could morph into a era of new Keynesian economics of common sense and usher in a new era of Social Democracy. A era of Tuition Free College, Full Funding for Universal Healthcare, nationalization of the banks, ending all the wars, closing down all military bases, a 20 dollar minimum wage tied to inflation, a fair progressive tax, a Green New Deal to start rebuilding our infrastructure and tackle climate change, and universal basic income.

The final choice would be for the Neoliberal to be the last stage of Capitalism, and usher in a new world based on the collective needs of all, a world built on solidarity, freedom, justice and equality. A world where workers no longer worry about free trade deals, because the workers run and control their workplaces. This will finally, for the first time in history, allow the workers to run and control their own destinies.

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