Trump's economic moves hit real people

 

Gordon L. Weil

Since the day Donald Trump became president for the second time, the U.S. has been flooded with disruptive actions, just as he intended.

In reaction, experts and the media have issued dire warnings about the effects, intended or not, of his moves – inflation, immigration, employment, science, commerce and the future economy. Almost all these reactions have focused on the deep and long-lasting national harm his actions will cause.

While Trump’s policies must be taken seriously and the warnings should be heeded, they may seem to be happening at a far higher level than the everyday lives of most Americans.  The best the critics can muster is the observation that the effects will soon find their way down to average people.

If the effects seemed remote or even not likely to happen before they would be erased by renewed prosperity, then Trump can be reassuring and convince people that short-term pain will bring long-term gain.  His message has been that he is so brilliant that people can count on him producing the promised prosperity.

That message is still pending, but it seems increasingly possible that the pain won’t be short term, so the gain is more remote than had been originally implied. The immediate test is whether that situation will have a big enough impact on the 2026 elections to produce a Congress able to rein in Trump or even offer its own policies.

The impacts of his policies are already becoming evident in the daily lives of average citizens.  I take a look here at some of what’s happening in Maine.

The Maine license plate has for decades proclaimed the state as “Vacationland.” Tourism means a lot to the state’s economy, and a lot of the tourists come from eastern Canada.  Canadians feel at home in a familiar culture with appealing beaches and attractions.  But with Trump’s ridiculous but often repeated claim that Canada should become the 51st state, everything has changed.

This absurdity coupled with an overt effort to destroy the Canadian economy to the point that it will seek refuge in the U.S. has amazingly and quickly turned a natural friendship into hostility.  Many Canadians now dislike the U.S. and have cancelled plans to come to Maine this summer.  Maine did not give him all its electoral votes, so he likely doesn’t care about the hit to tourism.

Then, there’s inflation, a big issue for Mainers.  Under former President Biden, as the economy recovered from abnormally low inflation during Covid, inflation took off.  Though it had greatly diminished by the end of Biden’s term, the memory lingered on, and Trump continually reminded voters of it.  Kamala Harris’ response was laughably weak, so Trump scored his point.

Instead of inflation abating, especially for home prices, it began to increase.  Trump’s tariffs were not absorbed by exporters or American retailers, as he had promised.  The free market, favored by him, worked normally, and prices eventually reached consumers.  Walmart and Target prices in Maine rose sharply, as they did elsewhere.  Grocery prices remain high in a state that’s at the end of the supply line.   People noticed.

Housing is especially sensitive.  It is among the top three concerns in the state, along with inflation and immigration. Higher building costs, resulting partly from expected increased Canadian lumber prices, put homes out of reach for potential buyers. The ability of the private sector and government to push tiny homes to ease homelessness was undermined.

That happened in a special way in Maine.  The University of Maine has the world’s largest 3-D printer, and it produced a complete tiny house.  But it needs federal funding to move ahead. Because Trump dislikes Gov. Mills’ insistence on state control of trans athletic policy and the president’s aversion to academic research, the project has begun laying off workers.

Like tourism, a mainstay of the economy is lobster fishing.  Lobsters are a high-cost food whose sales track the health of the national economy.  Trump has managed to create so much uncertainty throughout the economy that consumers are holding back on many purchases and there’s concern about the impact on fishing in coming months.

Every state, every market has seen its own effects of Trump’s policies.  Just as the U.S. cannot be an economic island, neither can any state.  Broad-brush national policies have local effects that should not be ignored, especially by Congress.  Trump’s vision of American industrial greatness comes at immediate cost to the paycheck-to-paycheck population.

Trump’s popularity, though waning, survives because many people like his immigration policy and take comfort in his economic nationalism.  The ultimate judgment may come when Maine fishermen, supermarket shoppers, tourism operators and home buyers vote for their next U.S. senator just 17 months from now.

The law versus the president

 

Gordon L. Weil

President Trump’s initiatives have produced a flood of legal actions, charging him with violating laws and the Constitution.  His challengers ask the courts to make sound legal interpretations in their favor, no matter the political orientation of the judges.

The complainants should be worried.  The Supreme Court may share Trump’s expansive view of the presidency, giving him legislative powers.

A second cause of concern is that the courts appear to have begun tipping the balance of power among the three branches of government in their favor.  The legislative power is rapidly fading, as members of Congress are more concerned with self-preservation than the national interest.

The Supreme Court seems to favor Trump.  Its decision in Trump v. U.S. authorized an almost unchecked presidency. Its recent orders allowing the president to control supposedly independent regulatory agencies highlight the Court majority’s agreement with Trump and support for the concept of the unitary presidency.

Look at its handling of Trump’s attack on birthright citizenship.  Instead of making a clear statement on his tortured interpretation, the Court has hidden behind a procedural question to delay a ruling.  Despite clear language and its own solid precedent, it allows Trump to create uncertainty for millions of people.  Its slow response appears intentional.

Oddly enough, a Maine case may be the best indication of a runaway judiciary that, like the president, denies checks and balances that are essential to the American political system.  Here’s the story.

Years ago, the Maine Supreme Judicial Court decided a case pitting mortgage customers against the banks holding their mortgages.  The case related to the speed and ease with which foreclosures could take place.  The Court decided in favor of the customers.

Last year, a new case appeared in which the banks sought to reverse the earlier decision.  A judge now on the Court is a lawyer who represented the banks in the earlier proceeding.   She received some advice that she need not recuse herself and she didn’t.  Hers became the deciding vote in a 4-3 ruling that favored the banks.  Her former clients won.

The official judicial ethics committee found a conflict of interest.  The committee can take no further action; the decision is up to the Supreme Court.  It has done nothing, at least so far.

The Maine Legislature is considering a bill for a study on how to apply judicial ethics to the Supreme Court.  But the Court informed the legislative committee that even its consideration was unconstitutional, because a study could not lead to legislation.  The Court asserted that it alone has judicial power, and the Legislature cannot act.  Obviously, it would rule that any such action is unconstitutional.

Carry this assertion over to the federal level.  Congress can define court jurisdiction.  If Congress were to rein in the Supreme Court from its broad support of a dominant president, it probably would face a presidential veto, and the Court could rule its law as unconstitutional.  Without any appeal, the only reactions then available would either be adding justices or amending the Constitution.

In one of the wisest political acts of his presidency, Joe Biden vetoed the addition of scores of federal judges, all of whom would have been named by Trump.  Had he accepted that he was a one-term president, he might also have been willing to propose increasing the size of the Supreme Court to restore some balance.  Lincoln and FDR both did.

The president is radically changing the Constitution as it has evolved over the centuries.  Trump appears to believe that, in an emergency he declares, he is not bound by the Constitution, the laws or the courts. His position implies that “democracy” no longer works and should be replaced by a presidency of unlimited power.

Congress, when dominated by the president’s party, is proving to be a docile accomplice.  The U.S. now has achieved the goal that then Speaker Newt Gingrich sought in the 1990’s – parliamentary government in which party discipline translates into unified support of a party’s president and unified opposition to the other party.

The Supreme Court, with its jurisdiction under attack by the Trump administration, could educate the president on what the law is. That’s what the U.S. Court of International Trade did this week, when it overturned almost all of Trump’s tariffs.  However, the Supreme Court looks more likely to join the other branches in transforming the American political system. 

The people hold the power to settle the matter in the 2026 congressional elections.  Does the American voter want to replace constitutional checks and balances by presidential rule?   Can they elect a Congress that recovers its powers and restores the intended balance with the president and the Court? That may be the real choice next year.