Posts Tagged ‘Solar industry’

The Thinker

In the midst of chaos, plenty of reasons to be hopeful about the midterms

In my last post, I intimated that Trump Disorientation Disorder was striking close to home, affecting my wife’s mental health. I’d like to say she’s doing better but at least she’s getting treatment. I doubt she is alone. Every week in this presidency feels like being on a roller coaster in free fall, but some weeks are freakier than others.

This week certainly was one of them. Trump’s cruel policy of separating children from families at the border grew slightly less evil when he decided to rescind this policy, a policy he said could not be rescinded because somehow it was all the Democrats fault. To kind of cap off a freaky week with a bit of humor was this nugget from a Washington Post story. Apparently our “stable genius” president doesn’t know that only Congress can change immigration law. He thought he could do it by decree.

A cascade of awful news is not great politics. Trump apparently thinks that being awful pays political dividends. The dividend he is looking for is to turn out his base in the midterms. He may or may not succeed in doing so. But he can’t win by just turning out his base. He won the presidency by turning out coalitions, including a lot of Obama voters who didn’t like Hillary. Also, a presidential election is much different than a midterm election. In a presidential election, you can win while losing the popular vote, which was his case. In a midterm the playing field is more even. Senators are elected or reelected based on the popular vote. Gerrymandered districts make it harder for incumbents to lose reelection. A recent Supreme Court ruling suggests at least for the moment the court sees no reason to declare these crazily drawn districts illegal. In any event, happy people rarely have motivation to go to the polls, while unhappy people have plenty of incentive.

So the more Trump piles on the unhappiness, the more motivated its victims have to go to the polls. Moreover, Republicans are doubling down on deeply their unpopular policies. Just this week the House narrowly passed a bill that would cut food stamp benefits. It’s unclear if this bill will become law, but we do know that Trump has initiated a wholly unnecessary trade war that’s already affecting blue-collar Trump voters and is likely to affect many more of them as the midterm approaches. Indeed, countries experiencing American sanctions have created targeted sanctions narrowly focused to rile Trump’s prime constituencies.

Republicans in Congress sure have noticed. This is a party of free traders but their complaints to Trump on these tariffs are falling on deaf ears. It’s one thing to target policies affecting people that Republicans don’t like, such as immigrants. It’s another thing entirely for them to affect their own voters.

But it won’t be just them of course. It will be lots of us. Tariffs raise prices while reducing competition. To some extent it’s affected my purchasing decisions too. We are considering adding some solar panels to our system, but panels are now subject to steep tariffs. With no chronic need to buy them, it’s easier to wait until tariffs disappear. The price of panels should drop anyhow but there’s no reason for us to pay a premium now. It’s not good for solar companies however, which are already suffering and shedding jobs. Most of these jobs are steady blue-collar jobs too, likely worked by a lot of people who voted largely for Trump.

If Trump truly wanted to help his base, he would not have put up this tariff in the first place. Solar jobs have been climbing steadily and are almost the ideal blue-collar jobs of the future. As prices decrease, demand for solar will only increase, plus will be replacing a dying coal industry with clean solar power. It’s a no-lose proposition.

This of course is only one of many ways Trump is pissing off his own voters. He and the Republican congress still seem intent on destroying the Affordable Care Act, despite its popularity. He said he was going to replace it with something better that costs less, but hasn’t. So premiums will be on the rise right before the election instead. People are already losing health insurance and rising premiums will price many out of the market too. The lack of a penalty to have health insurance also pushes up premiums. Health care availability and affordability is the top issue right now on voters’ minds. In short, their policy is deeply counterproductive to staying in office.

Trump of course ran on a platform that in many ways sounded quite progressive. He complained about big business and the elites. Once in office though he populated his administration with these very people. Trump’s core voters won’t give up on him, but he will peel away plenty of marginal voters. From special elections over the last two years, it’s clear that voters are voting their pocketbooks, which explains why Democrats have been winning so many of them.

If nothing else, tariffs will have an inflationary effect. We’re likely to see the unemployment rate tick up between now and the election too, most likely due to Trump’s tariffs. Those who are victims may find themselves with less of a safety net to fall back on: less in the way of food stamp benefits and unless their state has expanded Medicaid no health insurance too. These factors will lead to economic uncertainty. It’s hard to say if it will cause a financial crisis before the election, but it certainly might. In any event, despite the tight labor market, most employed Americans have actually lost income during this administration. And since fewer than half of employed Americans have a 401K or own any stocks, they are not profiting from upturns in the stock market.

To me this suggests 2018 will be a wave election that will swing the country decidedly in a blue direction. There are few signs that Republicans can point to that are to their advantage. It’s sure not their immigration policy, which is deeply loathed by all sides. But of course it will be pocketbook issues that will be motivating voters the most, and voters will have plenty of motivation to vote in their best interests.

 

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