counterpunch | I want to move on to one of the issues people have been thinking about today: in light of this new political context, I want to ask you about the chapter in your book “K is for kleptocrat.” The new Trump administration has done a number of things that people are concerned about. With regard to the financial sector, they’ve rolled back the feeble regulations of Dodd-Frank. The Republican Congress is looking into an infrastructure project that largely looks to be a giveaway of public funds to the private sector. This is to say nothing of the president’s direct business interest, but I’m wondering what your reaction is to the new administration. Also, there’s this idea that the Trump administration represents something new. I was wondering what you see that is new, versus what is more or less ‘business-as-usual’?
Michael Hudson: What’s new is that Trump said the emperor has no clothes. He said, “You think you’re getting rich under Obama? You haven’t got rich.” So when Hillary told her supporters to look and see how much better off you are today than when Obama was elected, she made herself look blind, referring only to the One Percent. All the growth in the American economy from 2008 to 2016 accrued only to 5% of the population – the richest. 95% of the population were worse off. Trump saw the obvious – which you would think that any member of the 95% would have seen. When Hillary tried to convince people they were better off, Trump simply said, “Let’s look at reality: You’re worse off.”
Voters thought that if he could see that they’re worse off, he must know how to cure it – instead of knowing how to make them even more worse off. People wanted prosperity and Trump said NATO’s obsolete. There’s no reason for us to maintain it—Russia’s not going to invade Europe. Why should they invade? There’s no way any European country is going to militarily invade another.
The new mode of warfare isn’t military anymore, it’s financial. Russia and China realize that the United States is dissipating its ability to conquer countries financially by spending its economic surplus on military and the FIRE sector. Trump realized that as a real estate developer, he’d been fighting banks all his life. There’s no love there for the banks.
So the neocons are out to get him. They’re saying it is treason to want peace instead of war. We need an enemy sufficient enough to justify giving all the surplus to the upper 5% and spending it on the military. If you don’t advocate doing that, you’re a traitor – to their fortunes. So they’re out to get rid of him.
Adam Simpson: As I understand it, he has promised to increase military spending even without perhaps the enemy that Hillary would have painted Russia to be.
Michael Hudson: On the one hand, he did say that. On the other hand he said look we’re not going to spend so much money on Air Force One, you’re overcharging it. We’re going to get rid of the F-35 fighter—it’s cost almost a trillion dollars. He said that is a waste. We’re going to get rid of the waste. But if you get rid of the waste and what’s not necessary, you’re going to have lower military spending. So I don’t see what Trump is going to spend more military money on.