NYT: What Donald Trump Doesn’t Understand About ‘the Deal’
In recent weeks, hearing Trump talk, I’ve realized that his economic worldview is entirely coherent. It makes sense. He is not just a rent-seeker himself; his whole worldview is based on a rent-seeking vision of the economy, in which there’s a fixed amount of wealth that can only be redistributed, never grow. It is a worldview that makes perfect sense for the son of a New York real estate tycoon who grew up to be one, too. Everything he has gotten — as he proudly brags — came from cutting deals. Accepting the notion of a zero-sum world, he set out to grab more than his share. And his policies would push the American economy to conform with that worldview.
Many economists and political scientists now think that the United States economy has shifted, over the past few decades, toward one in which a higher proportion of the economy comes from so-called rents: Wall Street’s maneuvering through the regulatory process, ‘‘free-trade’’ deals whose thousands of pages of rules wind up proscribing winners and losers. The left, right and center of the economics profession all agree that reducing rent-seeking behavior, and improving overall growth, is essential if we want to ‘‘make America great again.