The Self-Centered Presidency With No Coherent Plan

Donald Trump sold himself as a businessman and dealmaker who could rescue the nations economy. After 100 days in office, his frequent policy reversals, lack of detailed understanding, and concern for his image over the direction of the country make it increasingly clear that he has no coherent plan to lower the trade deficit or bring back lost manufacturing jobs.

He isnt tactfully unpredictable; hes habitually unprepared and recklessly unprincipled. President Trump is consistently short-sighted and more interested in the medias news cycle over advocating details of a plan for job growth and economic stability. For many of us, this is affirmative reinforcement; for others, it is an unnerving revelation.

He plucked on the heart strings of Middle America and oversold what he could deliver because he had no idea what would be required to deliver it, nor did he care. The President has backed away from many of his trade promises made during the campaign. The Trump administration decided not to label China a currency manipulator and the President said that he would cut a favorable trade deal with Beijing if it agreed to help divert North Koreas provocative behavior. The administration has also indicated that it will not seek sweeping changes to the North American Free Trade Agreement (NAFTA), which Trump threatened to terminate, notably calling it the worst trade deal ever during his campaign. And the Presidents proposal to put in place a big border tax is going nowhere in Congress because of internal disagreements among Republicans .

Just after the election, Trump indicated that he wanted to keep the protections for patients with pre-existing conditions. As we know now, Trump supports a health care bill would let states opt out of covering basic health care needs as well as covering pre-existing conditions for the sake of handing the wealthy a colossal tax cut. Many economists say that the current House legislation is so sweeping and its changes so abrupt that it carries economic risks and threaten jobs, especially given the size of the health care sector and how slowly other parts of the economy are growing.

Further, Trump has done a complete about-face on the Federal Reserve Chairwoman, Janet Yellen. He now says that he likes her and that low interest rates are good. The protectionist tariffs that Trump threatened to enact would have resulted in higher interest rates which would then lead to an even larger trade deficit and fewer manufacturing jobs. After all the bombastic reinforcement of his own brand of nationalism, it seems Trump does not hold on to the convictions from the far right wing of his party. The moderate voices from his administration have influenced his reversals.

The world can breathe a sigh of relief that Trump has backed away from his most provocative economic rhetoric and that his administration is not about to start disruptive trade wars with China, Mexico, and other countries. Such a confrontational course would result in higher prices for U.S. consumers and a disruption of global trade that would result in destabilizing the U.S. economy.

Instead of sticking it to China, as President Trump pledged to do during the campaign, he is boosting Chinas rise toward claiming the spot of the worlds leading economic and strategic power. Rather than reinforcing our allies by acting as an economic and strategic counterweight in the Asia-Pacific, Trumps withdrawal from the Trans-Pacific Partnership (TPP) allows China to assume leadership and dominate the region. Further, his dependency on Chinese President Xi Jinping to resolve the growing tensions with Pyongyang, rather than proactively galvanizing a united front among Americas allies, yields U.S. leadership and influence in the region. Meanwhile, China is taking advantage of Trump's economic agenda. At the World Economic Forum in Davos, President Xi delivered a robust defense of trade and globalization. Xi said China would be happy to take over the leadership role in global trade that the United States has now relinquished. That is not good for Americas interests.

Instead of moving policy forward through legislation, the President has initiated vague and empty executive orders which are designed for publicity but lack substantive gains. Moreover, his administrations tax reform proposal, an essential component of his economic agenda, lacks the essential details to prove how it would directly impact the Middle Class and address the fate of 401(k) tax deductions. Treasury Secretary Mnuchin cannot guarantee that the middle class would not pay more in taxes until the tax reform plan is finished and on the Presidents desk.

President Trumps flip flops on his administrations NATO policy and Syria are also making impacts on the economy. Since Trump entered into office, the U.S. economy grew at a sluggish 0.7 percent rate, the weakest quarterly showing in three years. This is far below the 2.5 percent pace in President Obamas final three months in office, let alone Trumps ambitious 4 percent target.

The Presidents erratic, inconsistent policy lacks specifics and does not inject confidence to the American people and the global community. Trumps uncompromising, self-centered personality and undisciplined leadership style makes him a liability to the markets and our nations economic stability.

America will need a more dynamic policy plan that leverages ingenuity and its entrepreneurial spirit not short-sighted schemes that spin media headlines and are focused on dramatically increasing the wealth of Trumps business empire and the top one percent.