Of course Davos loves Trump
Jeff Spross
1 day ago
Editor’s note: The opinions in this article are the author’s, as published by our content partner, and do not necessarily represent the views of MSN or Microsoft.
Illustrated | Jeff J Mitchell/Getty Images, REUTERS/Jonathan Ernst President Trump.
Have President Trump and the Davos crowd come to an accord?
Every year in January, business titans, government leaders and celebrities gather for the World Economic Forum in the Swiss town of Davos. It's become a stand-in for the pro-globalism elites that Trump railed against. When the president first joined the event in 2018, "his trip was treated with deep skepticism, if not disdain" by the attendees, as Andrew Ross Sorkin put it in the New York Times. But this year, "there is an increasing sense that [Trump] will be accepted, if not embraced."
Other people with their finger on the pulse of the Davos crowd — such as historian Niall Ferguson and Eurasia group founder and president Ian Bremmer — made similar assessments. And, in truth, a warming between the two camps was probably inevitable.
Quite often, and certainly when Trump first entered the White House, the tension between him and the Davos crowd was pitched as a great first-principles clash between reactionary nationalism and multicultural globalism. But in truth, this was largely a war between intellectual fads — one that hid a far more important commonality between Trump and the Davos set. Namely, both sides share a basic assumption that business leaders and wealthy investors (which of course includes the Davos elites themselves) are the most important and valuable participants in economic life.
The Davos set's enthusiasm for free trade, for example, was basically a product of how well global trade liberalization worked out for them. The end of tariffs and capital controls and other barriers allowed them to shop the globe for the cheapest inputs — which largely means the cheapest labor — and thus higher profit margins. The argument was that this new era of liberalized international trade would improve the growth rates for global productivity. But whatever changes it brought in that realm were completely swamped by the changes brought to the distribution of wealth and income. Wages and jobs fell for the western working class, poorer nations were trapped in permanent roles as low-end providers of cheap inputs, and all the actual benefits of higher productivity were siphoned into the pockets of the global elite.
Trump used the rage set off by these changes to his advantage in the U.S. election of 2016. But his economic vision has never had any coherent strategy for returning power to everyday workers. Trump's trade war is essentially a showman's wrestling match — a slugfest devoid of policy substance, far too shallow to have any concrete chance of rebalancing the money flows and scales of power. As appalled as Davos attendees may have been by Trump's enthusiasm for tariffs and national confrontation, their own understanding of the economics was in turn far too shallow to grasp that Trump's agenda posed no actual threat to them.
"To the surprise of many Davos regulars, the economic results [of Trump's economic agenda] have yet to prove as disastrous as they expected — and, at least in the short term, have seemingly proven to be quite positive," Sorkin observed. "Quite positive" for the Davos attendees themselves, of course. But you get the point.
Similarly, Trump's indifference to deficit spending does not translate into any serious proactive desire for public investment or full employment policy — it merely opened the door for progressives and Democrats to shoehorn public investment into spending bills negotiated with the Republicans. Trump's desire for lower interest rates stems from a real estate tycoon's understanding of monetary policy: He does not realize how difficult it is for lower rates to translate into big wage and job growth numbers, once the overall structure of the economy has been sufficiently tilted to favor the wealthy and the ownership class. And Trump is happy to champion stock market numbers as a valid measure of economic success, even though the stock market's gains often come at workers' expense.
But the key point on which Trump and the Davos set can find common ground is, of course, Trump's 2017 tax cut. That legislation was built around the idea that government taxes on corporate profits were a weight dragging down the economy's most valuable players, and the way to juice growth was to remove the barriers that stand between wealthy owners and their corporate profits. Economically, it didn't work out that way, but the Davos crowd doesn't mind: "On behalf of the business leaders here in this room let me particularly congratulate you for the historic tax reform," Klaus Schwab, the founder of the World Economic Forum, told Trump during his 2018 visit.
And like any good right-winger, Trump's administration has been culling regulations left and right, particularly when it comes to protections for the environment and protections for workers. Instead of being forced to spend their revenue on higher pay, more benefits, or efforts to clean up their pollution and cut their carbon emissions, corporate titans are now more free to deploy that capital as they see fit — as often as not, right into their own pockets.
"There are a lot of masters of the universe who think [Trump] may not be their cup of tea, but he's been a godsend," Bremmer told the Times. And in an interview with Yahoo Finance, Ferguson agreed the forum's attendees are "begrudgingly embracing" Trump. "The dirty little secret of Davos 2020 is that they all need him to get re-elected."
In truth, the signs were always there. As much as reporting from the first Davos forum after Trump's election may have highlighted the attendees shock and dismay at the 2016 results — and even if Trump was booed during his 2018 visit — the fact is that, even in January 2017, business elites were already salivating over the prospect of Trump's coming tax cuts and deregulatory push.
Reporting from the Times, confirmed by Ferguson, also suggests a big motivating factor in the thawing relations is who Trump may well be running against in 2020. Unlike the billionaire-friendly Hillary Clinton in 2016, Trump's Democratic opponent this time around may be a genuine barnstorming left-wing populist. "Nobody wants to say that out loud," Ferguson said. "But I think that the consensus view is that [Trump] will be re-elected, and that probably is a good thing if the alternative is — shudder — Bernie Sanders or Elizabeth Warren." Yes, Ferguson literally said "shudder" there.
The Davos crowd may grate at Trump's nationalist rhetoric; they may be horrified by his reactionary cultural stances; they may even disagree with him on climate change. But at the end of the day, they know who will defend their place atop the mountain.
https://www.msn.com/en-us/news/opinion/of-course-davos-loves-trump/ar-BBZdcOv?ocid=msn360
Today at 7:23 am by Rocky
» Governor of Baghdad: 20 projects will be included during the current year in the city of Nahrawan
Today at 7:20 am by Rocky
» More than $242 million in central bank sales today
Today at 7:17 am by Rocky
» Advisor: Sudanese is determined to close the displacement file
Today at 7:14 am by Rocky
» Al-Sudani: The implementation of the 2023 budget witnessed a success that must be invested in
Today at 7:13 am by Rocky
» The Baghdad Council will decide on the nomination of the committees in the coming days
Today at 7:10 am by Rocky
» Al-Samarrai: The Sunni community is not in favor of removing American forces
Today at 7:08 am by Rocky
» A warning from Al-Rasheed to those wishing to apply for advances and loans
Today at 7:06 am by Rocky
» Azerbaijan expresses its desire to participate in the implementation of joint projects in the oil an
Today at 7:05 am by Rocky
» Fuel cards arouse citizens' discontent
Today at 7:03 am by Rocky
» utube 3/18/24 MM&C Iraqi Dinar-- IQD-- Dinar Update -100% Electronic - Real Effective Exchange Rat
Today at 5:21 am by Rocky
» utube MM&C 3/16/24 0:05 / 18:16 Iraq Federal Court Brings - Strength to Financial - Politic
Today at 5:18 am by Rocky
» MM&C 3/18/24 Sudanese Advisor: Iraq will leave government monetary dealing in mid-2024
Today at 5:17 am by Rocky
» A delegation from the Kurdistan government visits Baghdad to discuss the issue of localization of sa
Today at 5:11 am by Rocky
» Director of the Central Oil Company: We are keen to provide the appropriate investment environment
Today at 5:10 am by Rocky
» The Energy Parliament calls for reporting generators violating government pricing
Today at 5:08 am by Rocky
» A representative reveals the fate of the laws of “previous sessions”
Today at 5:07 am by Rocky
» Politician: Coordination holds the keys to resolving the “Parliament Presidency” conflict
Today at 5:05 am by Rocky
» Al-Sudani: Iraq wants to carry out its peaceful activity in the field of atomic energy
Today at 5:04 am by Rocky
» Including a minister and a parliamentarian... 38 arrest and recruitment orders were issued against t
Today at 5:02 am by Rocky
» Integrity: Citizens’ cooperation resulted in detecting inflation and returning state funds
Today at 5:01 am by Rocky
» Agriculture presents 97 projects to the Ministerial Council for the Economy
Today at 4:59 am by Rocky
» Al-Sudani: We succeeded in implementing the 2023 budget, and we must continue to complete economic p
Today at 4:58 am by Rocky
» Labor adopts new mechanisms to reduce the phenomenon of begging
Today at 4:57 am by Rocky
» Electronically.. directing the collection of fees tomorrow in an Iraqi governorate
Today at 4:56 am by Rocky
» Held in Brussels.. Iraq receives an official invitation to attend the Nuclear Energy Summit
Today at 4:55 am by Rocky
» Kurdistan has been paralyzed. There has been no liquidity in hand for 50 days, and the truth has bee
Today at 4:53 am by Rocky
» The dollar continues to decline against the Iraqi dinar on the stock exchange and exchange offices
Today at 4:52 am by Rocky
» The Minister of Oil reveals the reasons for Shell’s withdrawal from Nebras: It will be divided into
Today at 4:51 am by Rocky
» The Housing Fund advises loan applicants and launches a link for inquiries
Today at 4:50 am by Rocky
» He stressed that the government’s vision is to make one class not exceed 25 students...Government me
Today at 4:48 am by Rocky
» Al-Hakim and Al-Halbousi stress the importance of choosing a speaker for Parliament in accordance wi
Today at 4:47 am by Rocky
» Iron and Steel Company: Iraq is on the verge of a major industrial revolution
Today at 4:46 am by Rocky
» Economists: Citizens still prefer cash transactions over electronic transactions
Today at 4:45 am by Rocky
» The compass of Iraq's foreign policy in a world of turbulent polarization
Today at 4:43 am by Rocky
» Parliamentary Finance: The federal budget is in the corridors of the Council of Ministers, and there
Today at 4:42 am by Rocky
» Integrity calls on citizens to report the inflation of funds in the sector of the Ministry of Labor
Today at 4:40 am by Rocky
» Al-Sudani directs the launch of initiatives for young businessmen and investors
Today at 4:38 am by Rocky
» Representative agriculture emphasizes taking supportive measures for the local product
Today at 4:37 am by Rocky
» An economist calls on the government to support and stimulate the private sector
Today at 4:36 am by Rocky
» Al-Ittihad: Employees and retirees in Kurdistan paid the price of political differences with Baghdad
Today at 4:34 am by Rocky
» Al-Samarrai and Al-Hakim discuss the importance of achieving political and constitutional entitlemen
Today at 4:32 am by Rocky
» Only 23 million dunums. Iraq exploits approximately 50% of its arable land
Today at 4:30 am by Rocky
» Türkiye considers it a political issue.. Where have the negotiations reached regarding Iraq’s water
Today at 4:29 am by Rocky
» Sudanese receives an invitation to attend the Nuclear Energy Summit in Brussels - Urgent
Today at 4:27 am by Rocky
» Central Bank sales exceed $240 million today
Yesterday at 6:52 am by Rocky
» Parliamentary Finance calls on the government to expedite sending the 2024 budget to Parliament
Yesterday at 6:47 am by Rocky
» ‘We’re So Sick of It’: Northern Border Crisis Gets Worse
Yesterday at 6:35 am by Bama Diva
» A representative holds Kurdistan responsible for the faltering legislation of the oil and gas law
Yesterday at 5:27 am by Rocky
» Warnings of the danger of the increase in foreign labor in Iraq
Yesterday at 5:26 am by Rocky
» Iraq's oil exports to America decreased within a week
Yesterday at 5:25 am by Rocky
» Al-Sudani chairs an “important” meeting to form the Kirkuk government
Yesterday at 5:23 am by Rocky
» Investment confirms the adoption of a new method in new residential cities and explains its details
Yesterday at 5:21 am by Rocky
» For the first time in 2024.. exchange rates fall to the threshold of 149 thousand in Baghdad
Yesterday at 5:19 am by Rocky
» Including gold.. An increase in exports of 3 Turkish products to Iraq during 2024
Yesterday at 5:18 am by Rocky
» A detailed integrity report regarding the Housing Fund... called for this matter
Yesterday at 5:17 am by Rocky
» Resources count the number of trespassers in Baghdad.. What about restaurants?
Yesterday at 5:16 am by Rocky
» At a cost of approximately two billion dinars... determining the completion rates achieved in the Ma
Yesterday at 5:15 am by Rocky
» Parliament awaits the “Cabinet of Ministers” law
Yesterday at 5:14 am by Rocky
» Provincial councils return after an absence with a heavy legacy
Yesterday at 5:13 am by Rocky
» Iraq is the axis and meeting point of East and West
Yesterday at 5:11 am by Rocky
» One million beneficiaries of health insurance early next May
Yesterday at 5:10 am by Rocky
» Parliamentary Finance: Delaying the budget had a negative impact on the performance of the ministrie
Yesterday at 5:09 am by Rocky
» The chaos of urban expansion threatens the agricultural character of Diwaniyah
Yesterday at 5:08 am by Rocky
» A project to plant Japanese trees in Erbil
Yesterday at 5:07 am by Rocky
» A team to prepare the national strategy for national security in Kirkuk
Yesterday at 5:06 am by Rocky
» Next Tuesday...concluding a contract to expand the basic design of the city of Mosul
Yesterday at 5:04 am by Rocky
» A festival to reduce food prices in Mosul
Yesterday at 5:03 am by Rocky
» Technical committees between Baghdad and Erbil to resume oil exports through Türkiye
Yesterday at 5:02 am by Rocky
» A model of economic diversification
Yesterday at 5:01 am by Rocky
» Variation in the extent to which Iraq was affected by the decision to reduce the credit rating of {T
Yesterday at 5:00 am by Rocky
» Al-Sudani: Iraq has made a commitment to receive the entire security file from the Ministry of Inter
Yesterday at 4:58 am by Rocky
» The President of the Republic stresses the important role of Mr. Abdul Aziz Al-Hakim in the first st
Yesterday at 4:56 am by Rocky
» The Iraqi Center for Combating Rumors warns against social media celebrities misleading their follow
Yesterday at 4:54 am by Rocky
» Integrity investigates the work of the Housing Fund and indicates debts worth 56 billion dinars
Yesterday at 4:53 am by Rocky
» Agricultural associations in Karbala welcome the provincial council’s decision to prevent the fragme
Yesterday at 4:52 am by Rocky
» Free education lecturers demand that they be given job opportunities and contracts in Kirkuk
Yesterday at 4:51 am by Rocky
» The Digital Media Center calls for not browsing links published on a government page
Yesterday at 4:50 am by Rocky
» The President of the Republic confirms the strength of relations between Iraq and Italy
Yesterday at 4:48 am by Rocky
» A decline in Iraq's oil exports to America during the past week
Yesterday at 4:47 am by Rocky
» Economic researcher for / NINA /: Iraqi youth are qualified for the labor market and relying on them
Yesterday at 4:46 am by Rocky
» The Minister of Planning is following up on the Statistics Authority’s preparations to conduct the g
Yesterday at 4:45 am by Rocky
» 5 days after sending the money and the Kurdistan government has not paid the salaries...a political
Yesterday at 4:44 am by Rocky
» A political reading about Sudanese political concern.. Amending the election law is one of the attem
Yesterday at 4:42 am by Rocky
» Al-Sudani to the Baghdad government: Pay attention to the outskirts of the capital, and drainage mus
Yesterday at 4:41 am by Rocky
» The Iraqi dinar recovers against the dollar in local markets
Yesterday at 4:39 am by Rocky
» Investment provides a summary of Bismaya units... and the new cities have “fixed prices” for the fir
Yesterday at 4:38 am by Rocky
» “Hidden commissions” on electronic fuel cards, contrary to what is advertised.. To whom does 100 mil
Yesterday at 4:37 am by Rocky
» Al-Hasnawi: The government is continuing to accelerate the completion and opening of lagging health
Yesterday at 4:36 am by Rocky
» Oil: The gasoline import file will be closed early next year
Yesterday at 4:35 am by Rocky
» “My account or your account”... a new problem behind the delay in the salaries of the region’s emplo
Yesterday at 4:34 am by Rocky
» Al-Sudani: Iraq is about to host important events and conferences
Yesterday at 4:33 am by Rocky
» In Erdogan's visit to Iraq...the path of development in exchange for water
Yesterday at 4:33 am by Rocky
» An American report on Washington’s seriousness in withdrawing from Iraq: Biden does not want to lose
Yesterday at 4:30 am by Rocky
» The organization is banned in Iraq.. Baghdad decides the fate of the Workers’ Party after 40 years o
Yesterday at 4:29 am by Rocky
» The rain exposes the poor quality of service projects and calls for the dismissal of officials and h
Yesterday at 4:28 am by Rocky
» Politician: Ankara needs Baghdad economically, and the path of development is Iraq’s trump card
Yesterday at 4:26 am by Rocky
» Economic calls to adopt a new philosophy for implementing strategic projects
Yesterday at 4:24 am by Rocky
» Al-Maliki: My alliance with Al-Sadr is possible, and the movement’s distance from it is an unhealthy
Yesterday at 4:23 am by Rocky