The assault on the Blob has taken up most of the attention in Washington, along with the reproachment with Russia, but the biggest item on the Trump agenda is the restructuring of the American economy. If you listen to what Trump says when asked about what has been happening thus far, it often circles back to the economy and how he imagines it to be after his changes. The thing is no one in the media follows up on it so Trump is never asked about that end goal.

There were some hints in the Russia coverage. One of the participants from the Russian side was the head of their sovereign wealth fund. This is something Trump has said he wants to create for the American government. A sovereign investment fund is a state-owned investment fund that does the same things a private investment fund, except it also has an eye on policy. A sovereign wealth fund acts as an additional level in both foreign and domestic policy.

This is not a thing you typically see in the West, as the Western economic model is built on the assumption that the government should not meddle in markets. This is a big lie, of course, as Western governments regulate everything. The thing is the regulations are dictated by the market makers through the miracle of regulatory capture, so the political class has limited control of the regulations. A sovereign wealth fund would put the political class on an even footing with the market makers.

That brings us back to the administrative state and the Blob that has consumed it over the last thirty years. In theory it regulates the economy in the interests of the people, but in reality, it has been a conduit so that the parasites within the blob can suck the blood, as in money, from the system. That money is used to maintain control of the host and launch projects abroad. Trillions are sent into the system, but what comes out does not make any sense to anyone, even the people inside it.

Take the Department of Education, for example. It was organized under Jimmy Carter for the purpose of housing all educational programs under one agency. Today it has a quarter trillion-dollar budget and employs 3900 people. Now, that does not mean those employees have a sixty-million-dollar salary. Most of the money gets sent to the states via grants and subsidies. Put another way, a tiny number of people in Washington dictate education policy to the country through this agency.

Trump has ordered its dismantling, but it is not about the money. Pell Grants, for example, are not going away yet. They would be shifted to another agency and eventually either automated or killed off by Congress. The reality is things like Pell Grants are a subsidy to colleges and universities, not students. All government subsidies end up in the pockets of the industry getting the subsidy. If you create grants for buying BMW’s, then BMW raises its prices by the amount of the grant.

From the Trump perspective, the federal government meddles in the economy far too much, but even worse, it meddles in the wrong things, while at the same time it ignores the big things that it should be managing. The federal government spends hundreds of billions subsidizing colleges and universities but ignores the bizarre trade relations we have with Canada and Mexico. In other words, Trump-o-nomics is not rebranded conservatism or libertarianism. It is a radical reordering of priorities.

One way to think of what Trump has in mind is the corporate model, but the start-up variety rather than the late stage decline model. American Inc. is an aging company like IBM that is bogged down in old rules and old thinking. It survives, not on making new and better products, but on the proceeds of past success. If you were to revitalize IBM, you would strip out the good stuff into a new company and hand it to smart people and leave the old stuff to the investors.

That is the goal of the Trump program. The new model for American Inc. is to be like a startup where the people running it, the Executive branch, set the general goals and the broad operational outlines, but the people inside of it, the states, business, and the people, are left to figure out the rest. Things like tariffs, global trade deals and the sovereign wealth fund are tools for setting the broad agenda and correcting imbalances that arise inside the economy.

Anyone familiar with startups or growth companies knows that the enemy of growth and innovation is management. In the 1990’s, for example, ambitious people would see the hiring of human resources people as a sign to move onto the next startup, because they understood that human resources were the death of innovation. The assault on the Blob, therefore, is like the termination of the human resources, diversity, and training departments of a struggling corporation.

There is much more to this, but the thing to take away is that what is happening is just the small setup parts for a larger reshaping of the economic order. Those meetings with the Russians are more about economics than war. In fact, you already hear the change in language regarding Ukraine away from ideology and to economics. For Trump and America Inc., Ukraine is a bad business deal. The goal now is to bring it to a quick close and claw back some of the money.

In this regard, the Trump era may one day be seen as the bookend to the New Deal era that gave rise to the managerial state. It has been lost to the need to recast the New Deal to fit modern narratives, but the FDR people were inspired by what was happening in Europe at the time. This is what gave Burnham the inspiration to write the book, The Managerial Revolution. The irony of the man they swear is Hitler bringing to an end a system partially inspired by Hitler should not go unnoticed.

If you like my work and wish to donate, you can buy me a beer. You can sign up for a SubscribeStar or a Substack subscription and get some extra content. You can donate via PayPal. My crypto addresses are here for those who prefer that option. You can send gold bars through the postal service to: Z Media LLC P.O. Box 1047 Berkeley Springs, WV 25411-3047. Thank you for your support!