The True Dangers of Trump’s Economic Plans
His Radical Agenda Would Wreak Havoc on American Businesses, Workers, and Consumers
In his classic The Anarchical Society, the scholar Hedley Bull argued that there was a perennial tension in the world between forces of order and forces of disorder, with the details of the balance between them defining each era’s particular character. Sources of order include actors committed to existing international rules and arrangements and to a process for modifying them; sources of disorder include actors who reject those rules and arrangements in principle and feel free to ignore or undermine them. The balance can also be affected by global trends, to varying degrees beyond the control of governments, that create the context for actors’ choices. These days, the balance between order and disorder is shifting toward the latter. Some of the reasons are structural, but some are the result of bad choices made by important players -- and at least some of those can and should be corrected.
The chief cauldron of contemporary disorder is the Middle East. For all the comparisons that have been made to World War I or the Cold War, what is taking place in the region today most resembles the Thirty Years’ War, three decades of conflict that ravaged much of Europe in the first half of the seventeenth century. As with Europe back then, in coming years, the Middle East is likely to be filled with mostly weak states unable to police large swaths of their territories, militias and terrorist groups acting with increasing sway, and both civil war and interstate strife. Sectarian and communal identities will be more powerful than national ones. Fueled by vast supplies of natural resources, powerful local actors will continue to meddle in neighboring countries’ internal affairs, and major outside actors will remain unable or unwilling to stabilize the region.
There is also renewed instability on the periphery of Europe. Under President Vladimir Putin, Russia appears to have given up on the proposition of significant integration into the current European and global orders and chosen instead to fashion an alternative future based on special ties with immediate neighbors and clients. The crisis in Ukraine may be the most pronounced, but not the last, manifestation of what could well be a project of Russian or, rather, Soviet restoration.
In Asia, the problem is less current instability than the growing potential for it. There, most states are neither weak nor crumbling, but strong and getting stronger. The mix of several countries with robust identities, dynamic economies, rising military budgets, bitter historical memories, and unresolved territorial disputes yields a recipe for classic geopolitical maneuvering and possibly armed conflict. Adding to the challenges in this stretch of the world are a brittle North Korea and a turbulent Pakistan, both with nuclear weapons (and one with some of the world’s most dangerous terrorists). Either could be the source of a local or global crisis, resulting from reckless action or state collapse.
Some contemporary challenges to order are global, a reflection of dangerous aspects of globalization that include cross-border flows of terrorists, viruses (both physical and virtual), and greenhouse gas emissions. With few institutional mechanisms available for stanching or managing them, such flows hold the potential to disrupt and degrade the quality of the system as a whole. And the rise of populism amid economic stagnation and increasing inequality makes improving global governance even more challenging.
The principles informing international order are also in contention. Some consensus exists about the unacceptability of acquiring territory by force, and it was such agreement that undergirded the broad coalition supporting the reversal of Saddam Hussein’s attempt to absorb Kuwait into Iraq in 1990. But the consensus had frayed enough over the succeeding generation to allow Russia to escape similar universal condemnation after its taking of Crimea last spring, and it is anyone’s guess how much of the world would respond to an attempt by China to muscle in on contested airspace, seas, or territory. International agreement on sovereignty breaks down even more when it comes to the question of the right of outsiders to intervene when a government attacks its own citizens or otherwise fails to meet its sovereign obligations. A decade after UN approval, the concept of “the responsibility to protect” no longer enjoys broad support, and there is no shared agreement on what constitutes legitimate involvement in the affairs of other countries.
To be sure, there are forces of order at work as well. There has been no great-power war for many decades, and there is no significant prospect of one in the near future. China and the United States cooperate on some occasions and compete on others, but even in the latter case, the competition is bounded. Interdependence is real, and both countries have a great deal invested (literally and figuratively) in the other, making any major and prolonged rupture in the relationship a worrisome possibility for both.
Russia, too, is constrained by interdependence, although less so than China given its energy-concentrated economy and more modest levels of external trade and investment. That means sanctions have a chance of influencing its behavior over time. Putin’s foreign policy may be revanchist, but Russia’s hard- and soft-power resources are both limited. Russia no longer represents anything that appeals to anyone other than ethnic Russians, and as a result, the geopolitical troubles it can cause will remain on Europe’s periphery, without touching the continent’s core. Indeed, the critical elements of Europe’s transformation over the past 70 years -- the democratization of Germany, Franco-German reconciliation, economic integration -- are so robust that they can reasonably be taken for granted. Europe’s parochialism and military weakness may make the region a poor partner for the United States in global affairs, but the continent itself is no longer a security problem, which is a huge advance on the past.
It would also be wrong to look at the Asia-Pacific and assume the worst. The region has been experiencing unprecedented economic growth for decades and has managed it peacefully. Here, too, economic interdependence acts as a brake on conflict. And there is still time for diplomacy and creative policymaking to create institutional shock absorbers that can help reduce the risk of confrontation stemming from surging nationalism and spiraling distrust.
The global economy, meanwhile, has stabilized in the aftermath of the financial crisis, and new regulations have been put in place to reduce the odds and scale of future crises. U.S. and European growth rates are still below historical norms, but what is holding the United States and Europe back is not the residue of the crisis so much as various policies that restrict robust growth.
North America could once again become the world’s economic engine, given its stable, prosperous, and open economy; its 470 million people; and its emerging energy self-sufficiency. Latin America is, for the most part, at peace. Mexico is a far more stable and successful country than it was a decade ago, as is Colombia. Questions hovering over the futures of such countries as Brazil, Chile, Cuba, and Venezuela do not alter the fundamental narrative of a region heading in the right direction. And Africa, too, has a growing number of countries in which better governance and economic performance are becoming the norm rather than the exception.
Traditional analytic approaches have little to offer in making sense of these seemingly contradictory trends. One conventional route, for example, would be to frame the international dynamic as one of rising and falling powers, pitting China’s advance against the United States’ decline. But this exaggerates the United States’ weaknesses and underestimates China’s. For all its problems, the United States is well positioned to thrive in the twenty-first century, whereas China faces a multitude of challenges, including slowing growth, rampant corruption, an aging population, environmental degradation, and wary neighbors. And no other country is even close to having the necessary mix of capacity and commitment to be a challenger to the United States for global preeminence.
U.S. President Barack Obama was recently quoted as brushing off concerns that things are falling apart, noting that “the world has always been messy” and that what is going on today “is not something that is comparable to the challenges we faced during the Cold War.” Such sanguinity is misplaced, however, as today’s world is messier, thanks to the emergence of a greater number of meaningful actors and the lack of overlapping interests or mechanisms to constrain the capacity or moderate the behavior of the most radical ones.
Indeed, with U.S. hegemony waning but no successor waiting to pick up the baton, the likeliest future is one in which the current international system gives way to a disorderly one with a larger number of power centers acting with increasing autonomy, paying less heed to U.S. interests and preferences. This will cause new problems even as it makes existing ones more difficult to solve. In short, the post–Cold War order is unraveling, and while not perfect, it will be missed.
THE CAUSES OF THE PROBLEM
Just why have things begun to unravel? For various reasons, some structural, others volitional. In the Middle East, for example, order has been undermined by a tradition of top-heavy, often corrupt, and illegitimate governments; minimal civil society; the curse of abundant energy resources (which often retard economic and political reform); poor educational systems; and various religion-related problems, such as sectarian division, fights between moderates and radicals, and the lack of a clear and widely accepted line between religious and secular spheres. But outside actions have added to the problems, from poorly drawn national borders to recent interventions.
With more than a decade of hindsight, the decision of the United States to oust Saddam and remake Iraq looks even more mistaken than it did at the time. It is not just that the articulated reason for the war -- ridding Saddam of weapons of mass destruction -- was shown to be faulty. What looms even larger in retrospect is the fact that removing Saddam and empowering Iraq’s Shiite majority shifted the country from balancing Iranian strategic ambitions to serving them, in the process exacerbating frictions between Sunni and Shiite Muslims within the country and the region at large.
Nor did regime change have better results in two other countries where it was achieved. In Egypt, the American call for President Hosni Mubarak to leave office contributed to the polarization of the society. Subsequent events demonstrated that Egypt was not yet ready for a democratic transition, and U.S. withdrawal of support from a longtime friend and ally raised questions elsewhere (most notably in other Arab capitals) about the dependability of Washington’s commitments. In Libya, meanwhile, the removal of Muammar al-Qaddafi by a combined U.S. and European effort helped create a failed state, one increasingly dominated by militias and terrorists. The uncertain necessity of the intervention itself was compounded by the lack of effective follow-up, and the entire exercise -- coming as it did a few years after Qaddafi had been induced to give up his unconventional weapons programs -- probably increased the perceived value of nuclear weapons and reduced the likelihood of getting other states to follow Qaddafi’s example.
In Syria, the United States expressed support for the ouster of President Bashar al-Assad and then did little to bring it about. Obama went on to make a bad situation worse by articulating a set of redlines involving Syrian use of chemical munitions and then failing to act even when those lines were clearly crossed. This demoralized what opposition there was, forfeited a rare opportunity to weaken the government and change the momentum of the civil war, and helped usher in a context in which the Islamic State of Iraq and al-Sham (ISIS), which has declared itself the Islamic State, could flourish. The gap between rhetoric and action also further contributed to perceptions of American unreliability.
In Asia, too, the chief criticism that can be levied against U.S. policy is one of omission. As structural trends have increased the risks of traditional interstate conflict, Washington has failed to move in a determined fashion to stabilize the situation -- not raising the U.S. military’s presence in the region significantly in order to reassure allies and ward off challengers, doing little to build domestic support for a regional trade pact, and pursuing insufficiently active or sustained consultations to shape the thinking and actions of local leaders.
With regard to Russia, both internal and external factors have contributed to the deterioration of the situation. Putin himself chose to consolidate his political and economic power and adopt a foreign policy that increasingly characterizes Russia as an opponent of an international order defined and led by the United States. But U.S. and Western policy have not always encouraged more constructive choices on his part. Disregarding Winston Churchill’s famous dictum about how to treat a beaten enemy, the West displayed little magnanimity in the aftermath of its victory in the Cold War. NATO enlargement was seen by many Russians as a humiliation, a betrayal, or both. More could have been made of the Partnership for Peace, a program designed to foster better relations between Russia and the alliance. Alternatively, Russia could have been asked to join NATO, an outcome that would have made little military difference, as NATO has become less of an alliance in the classic sense than a standing pool of potential contributors to “coalitions of the willing.” Arms control, one of the few domains in which Russia could lay claim to still being a great power, was shunted to the side as unilateralism and minimalist treaties became the norm. Russian policy might have evolved the way it has anyway, even if the United States and the West overall had been more generous and welcoming, but Western policy increased the odds of such an outcome.
As for global governance, international accords are often hard to come by for many reasons. The sheer number of states makes consensus difficult or impossible. So, too, do divergent national interests. As a result, attempts to construct new global arrangements to foster trade and frustrate climate change have foundered. Sometimes countries just disagree on what is to be done and what they are prepared to sacrifice to achieve a goal, or they are reluctant to support an initiative for fear of setting a precedent that could be used against them later. There is thus decidedly less of an “international community” than the frequent use of the phrase would suggest.
Once again, however, in recent years, developments in and actions by the United States have contributed to the problem. The post–Cold War order was premised on U.S. primacy, which was a function of not just U.S. power but also U.S. influence, reflecting a willingness on the part of others to accept the United States’ lead. This influence has suffered from what is generally perceived as a series of failures or errors, including lax economic regulation that contributed to the financial crisis, overly aggressive national security policies that trampled international norms, and domestic administrative incompetence and political dysfunction.
Order has unraveled, in short, thanks to a confluence of three trends. Power in the world has diffused across a greater number and range of actors. Respect for the American economic and political model has diminished. And specific U.S. policy choices, especially in the Middle East, have raised doubts about American judgment and the reliability of the United States’ threats and promises. The net result is that while the United States’ absolute strength remains considerable, American influence has diminished.
WHAT IS TO BE DONE?
Left unattended, the current world turbulence is unlikely to fade away or resolve itself. Bad could become worse all too easily should the United States prove unwilling or unable to make wiser and more constructive choices. Nor is there a single solution to the problem, as the nature of the challenges varies from region to region and issue to issue. In fact, there is no solution of any sort to a situation that can at best be managed, not resolved.
But there are steps that can and should be taken. In the Middle East, the United States could do worse than to adopt the Hippocratic oath and try above all to do no further harm. The gap between U.S. ambitions and U.S. actions needs to be narrowed, and it will normally make more sense to reduce the former than increase the latter. The unfortunate reality is that democratic transformations of other societies are often beyond the means of outsiders to achieve. Not all societies are equally well positioned to become democratic at any given moment. Structural prerequisites may not be in place; an adverse political culture can pose obstacles. Truly liberal democracies may make for better international citizens, but helping countries get to that point is more difficult than often recognized -- and the attempts often riskier, as immature or incomplete democracies can be hijacked by demagoguery or nationalism. Promoting order among states -- shaping their foreign policies more than their internal politics -- is an ambitious enough goal for U.S. policy to pursue.
But if attempts at regime change should be jettisoned, so, too, should calendar-based commitments. U.S. interests in Iraq were not well served by the inability to arrange for the ongoing presence of a residual U.S. force there, one that might have dampened the feuding of Iraqi factions and provided much-needed training for Iraqi security forces. The same holds for Afghanistan, where all U.S. forces are due to exit by the end of 2016. Such decisions should be linked to interests and conditions rather than timelines. Doing too little can be just as costly and risky as doing too much.
Other things outsiders could usefully do in the region include promoting and supporting civil society, helping refugees and displaced people, countering terrorism and militancy, and working to stem the proliferation of weapons of mass destruction (such as by trying to place a meaningful ceiling on the Iranian nuclear program). Degrading ISIS will require regular applications of U.S. airpower against targets inside both Iraq and Syria, along with coordinated efforts with countries such as Saudi Arabia and Turkey to stem the flow of recruits and dollars. There are several potential partners on the ground in Iraq, but fewer in Syria -- where action against ISIS must be undertaken in the midst of a civil war. Unfortunately, the struggle against ISIS and similar groups is likely to be difficult, expensive, and long.
In Asia, the prescription is considerably simpler: implement existing policy assiduously. The Obama administration’s “pivot,” or “rebalance,” to Asia was supposed to involve regular high-level diplomatic engagement to address and calm the region’s all-too-numerous disputes; an increased U.S. air and naval presence in the region; and the building of domestic and international support for a regional trade pact. All these actions can and should be higher administration priorities, as should a special attempt to explore the conditions under which China might be prepared to reconsider its commitment to a divided Korean Peninsula.
With Russia and Ukraine, what is required is a mixture of efforts designed to shore up Ukraine economically and militarily, strengthen NATO, and sanction Russia. At the same time, Russia should also be offered a diplomatic exit, one that would include assurances that Ukraine would not become a member of NATO anytime soon or enter into exclusive ties with the EU. Reducing European energy dependence on Russia should also be a priority -- something that will necessarily take a long time but should be started now. In dealing with Russia and other powers, meanwhile, Washington should generally eschew attempts at linkage, trying to condition cooperation in one area on cooperation in another. Cooperation of any sort anywhere is too difficult to achieve these days to jeopardize it by overreaching.
At the global level, the goal of U.S. policy should still be integration, trying to bring others into arrangements to manage global challenges such as climate change, terrorism, proliferation, trade, public health, and maintaining a secure and open commons. Where these arrangements can be global, so much the better, but where they cannot, they should be regional or selective, involving those actors with significant interests and capacity and that share some degree of policy consensus.
The United States also needs to put its domestic house in order, both to increase Americans’ living standards and to generate the resources needed to sustain an active global role. A stagnant and unequal society will be unlikely to trust its government or favor robust efforts abroad. This need not mean gutting defense budgets, however; to the contrary, there is a strong case to be made that U.S. defense spending needs to be increased somewhat. The good news is that the United States can afford both guns and butter, so long as resources are allocated appropriately and efficiently. Another reason to get things right at home is to reduce American vulnerability. U.S. energy security has improved dramatically in recent years, thanks to the oil and gas revolutions, but the same cannot be said about other problems, such as the country’s aging public infrastructure, its inadequate immigration policy, and its long-term public finances.
As has recently been noted in these pages, American political dysfunction is increasing rather than decreasing, thanks to weakened parties, powerful interest groups, political finance rules, and demographic changes. Those who suggest that the country is only a budget deal away from comity are as mistaken as those who suggest that the country is only one crisis away from restored national unity. The world can see this, and see as well that a majority of the American public has grown skeptical of global involvement, let alone leadership. Such an attitude should hardly be surprising given the persistence of economic difficulties and the poor track record of recent U.S. interventions abroad. But it is up to the president to persuade a war-weary American society that the world still matters -- for better and for worse -- and that an active foreign policy can and should be pursued without undermining domestic well-being.
In fact, sensible foreign and domestic policies are mutually reinforcing: a stable world is good for the home front, and a successful home front provides the resources needed for American global leadership. Selling this case will be difficult, but one way to make it easier is to advance a foreign policy that tries to reorder the world rather than remake it. But even if this is done, it will not be enough to prevent the further erosion of order, which results as much from a wider distribution of power and a decentralization of decision-making as it does from how the United States is perceived and acts. The question is not whether the world will continue to unravel but how fast and how far.