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Why is Wall Street Booming

July was a very difficult month for Trump supporters. Each day’s headlines described more bad news about Donald Trump’s dysfunctional White House staff. The political news resembled a poorly plotted soap opera. This staff member resigned, that one got fired,

News from Congress was no better. The “skinny” Obamacare reform package failed spectacularly in the Senate. In my opinion, it should have failed. It attempted to save money at the expense of the poorest, most vulnerable members of our society. The only bright spot of the month in the White House occurred when Donald appointed General John F. Kelly as his Chief of Staff. It is likely that General Kelly will more closely follow the structure provided by a military organization rather than the script writers of Days of Our Lives. It remains to be seen if Donald will clean up his own act sufficiently to permit General John Kelly to restore order to the White House staff.

General John F. Kelly might borrow an approach taken by Baseball Manager Casey Stengal when he assumed command of the New York Mets, a team with a dismal record. Casey called a team meeting and asked, “Anybody here know how to play this game?” Chief of Staff Kelly could call a similar meeting and ask, “Anybody here have a clue what we are doing?”

Donald Trump will never behave in the manner of a conventional political leader. He has his own style which has worked for him in the past. If he permits lower staff members to communicate directly with him rather than going through the chain of command, General Kelly’s stay in the White House is unlikely to be long or successful. At the end of the day, stability in the White House will only come with the maturing of Donald Trump as a national leader.

Against the background of chaos, the Stock Market is surging to unprecedented heights. The Dow 30 Industrials has just reached 22,000. The “Trump Rally” continues to roll along, ignoring the cascades of adverse news pouring out of the liberal press. This rally is too long and too monotonic to be the result of random chance. There is a force at work here.

The Tea Party sought to reduce the size of government by cutting budgets. They have mostly failed. Donald Trump, in spite of his dog and pony show at the White House, has done something much more important for business. He has neutralized government by causing paralysis in both the Executive and legislative branches. Essentially, he has reduced the burden of government on the business world and permitted the economy to function free of these restraints.

Quietly, mostly behind the scenes, Trump has rolled back and reduced government regulations. He has changed the character of the people who are in direct contact with the national industries. He has changed the personnel in the regulatory agencies dealing with farming,
ranching, oil and gas extraction, coal and countless other industries.

In many governmental agencies the attorneys who formerly fought with the agencies on behalf of their business clients, are now running the agencies. From a business viewpoint, things are running more smoothly..

From the perspective of the business world, the Trump administration has been very successful. The stock market is reaching new highs, production is up, unemployment is down. The circus at the White House is providing a very distorted view of the actual performance of the Trump administration. It is clear that business executives do not read the Washington Post.

Donald Trump was not just elected President. He has captured the Executive Branch of the government on the behalf of the business community.

Professor Joe Launie is a Professor Emeritus of Risk Management at California State University,
Northridge. His latest book is “The Road to the Ox Carts”, where he warns that continued abuse of the middle class by the government may lead to an insurrection.

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About the author

Professor Joe Launie

Professor Joe Launie

In 1951, at the age of 18 I enlisted in an all volunteer military intelligence organization. My Korean war experience differed from most. I obtained a Bachelor's degree in Sociology at Northeastern University on the GI Bill. I obtained a Masters Degree in Economics, at University of Nevada, Reno and my PhD in Financial Economics at UCLA. I retired from CSUN in 2000 as a Full Professor after a 35 year career. I have been a litigation consultant since 1978 and have been a consultant to the California Legislature, Public Utilities Department, and Attorney General's Office. I was principal investigator on a study of Punitive Damages done for the Texas Public Policy Foundation headed by George W. Bush. i have more than 75 publications. My latest book is entitled, "The Road to the Ox Carts".