Democrat, Republican, or independent, for good or bad, there can be no argument that President Trump has had a big and radical impact on the American economy.

So much has happened:  can it really be just 130 days since his inauguration?

America – which is by far the world’s largest economy – with Trump at the helm, has grabbed that globe and whirled it around in a way nobody ever anticipated.  

There is no putting that genie back into the bottle.  President Trump’s actions have already changed the world’s attitudes about what America is and, as a result, what their expectations are concerning the U.S., and consequently, what they should do from now on.

EUROPE

Europe, in total:  the EU, the UK, and the other non-EU countries of Europe sum up to 24% of the world’s economy.  

The European Union includes 27 countries.  The EU is experiencing a slowly growing degree of political power.  The United Kingdom withdrew from the EU several years ago, due to the large number of immigrants entering into Europe and the problematic issues that resulted.  The rest of the EU seems intent on building a united Europe.  Europe needs to be a world-class power on equal terms with the US, China, and Russia, which means its historic differences must be resolved, so that it can face the world with one voice.  

RUSSIA

With the attack on the Ukraine by an increasingly belligerent Russia, there is a very real concern that the ex-Soviet countries of Latvia, Estonia, and Lithuania could also be attacked.  

Unlike Ukraine, however, those three countries are not only part of the EU, but are also members of NATO, which is specifically arrayed against Russia.  The EU – conspicuously – lacks any military forces of its own (only individual member countries are armed), but NATO is a strategically coordinated military organization of mainly European countries plus the US and Canada.

In fact, a build-up of NATO troops, tanks, and other equipment along the Russian border has recently occurred.  Russia has lost a large amount of military equipment and soldiers in Ukraine, and is certainly aware that such an attack would mean facing the US, the United Kingdom, and other military forces, against which they would be outmatched and overwhelmed.  

Russia spends a disproportionate amount of its budget on its military.  But Russia in total only constitutes 0.85% of the world’s economy.  

Russia has poignantly limited resources.  Its Communist economy (1917-1989) was inherently bankrupt, running down the country’s economy.  

The subsequent dominance of the economy by oligarchs continues to hobble the country’s financial growth.

Financially, Russia is experiencing a high level of inflation; the government is spending money faster than its economy can assemble the goods of real value that would support it.

CHINA

China constitutes just over 16% of the world’s economy – about ten times that of Russia.  

China can be considered a “top-down” economy.  The country’s Premier and the Communist Party behind him effectively dictate every facet of the country’s organization and operation.  

Is a top-down control structure the best formula for financial development and growth?

Too, slavery is still common in eastern China, and probably other remote areas.  Slavery only works in the most primitive of economies, which by definition are not going to be seeing much economic progress.  

THE UNITED STATES

The U.S. by itself constitutes a quarter of the world’s economy – almost 25%.  

How did the U.S. become such an economic powerhouse?  

If China is a top down economy, i.e., directed and controlled, the U.S. economy is based on individual freedoms – the right of each person to pursue his interests to the best of his capability and judgement.

China thinks one mind can make all the right decisions for everyone – i.e., country-wide regimentation.  In contrast, the U.S. thinks that 330 million minds can think of a great many more opportunities worth pursuing – far, far beyond the capabilities of a single mind.

It is foregone that some of those decisions will be wrong; but it is also true that making mistakes – trial and error – many times produces better results.  

This quote by Charles Kettering puts it very well:  “Every great improvement has come after repeated failures. Virtually nothing comes out right the first time.  Failures, repeated failures, are finger posts on the road to achievement.  One fails forward toward success.”

Top-down control leaves no room for failing towards success; the value of a whole avenue of human development is removed, along with all of the financial gains that could be realized as a result.  

Donald Trump has been a very successful businessman.  But in doing so he also has had his failures.  His unique approach as President reflects that experience.  As President, we get to see him as he continues to have successes, and continues to make mistakes along the way – and what he learns from his mistakes.  

Trump’s successes not only far out-weigh the level of successes made by the previous President, but also correct a substantial number of very bad mistakes made by a number of President Trump’s predecessors.  “Make America Great Again” is not something which should have needed to be pursued.

Welcome to the Trump economy!

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