Maybe I just missed it. But in all the testimonials at the Democratic convention about what Hillary Clinton has done for other people, I don’t recall anyone saying, “I started a business because of Hillary Clinton.” Or, “I hired someone because of Hillary Clinton.”
We heard from first responders, veterans, grieving parents and victims of terrorism, rape and various forms of discrimination. There was just one group that was conspicuously absent: the people who drive our economy by inventing things or by borrowing money to start companies that actually employ people.
Watching the convention, you would never know that what also makes America great is that generation after generation, people full of ideas risk their savings to start companies that provide work and paychecks. And only by generating more of these risk-takers will more people get hired for the good jobs Clinton promised.
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The only things that were remotely growth-related in her speech were glancing references to a government-led infrastructure investment program (Go for it!) and her vow “to give small businesses a boost. Make it easier to get credit.”
To do that, though, would run smack into the anti-bank sentiment of the Democratic Party, since small community banks provide about half the loans to small businesses, and it is precisely those banks that have been most choked by the post-2008 regulations. We need to prevent recklessness, not risk-taking.
I raise this for two reasons. The first: Donald Trump may not stay stupid forever (although he might!), and therefore Hillary will have to beat him on the central economic issue of growth. Trump spent the past few days trashing the parents of a heroic Muslim American soldier who lost his life in Iraq. The parents had – rightly – criticized Trump. But in his return fire, Trump shot himself in both feet, losing support in his own party.
Trump defended his Twitter tantrum against the soldier’s parents with a sixth-grader’s playground defense: “He called me a name.” He forgot that his own convention engaged in a mad chant of “lock her up” about Clinton, but she ignored it and stayed on her message. That’s what adults do.
Mind you, I hope Trump remains in his total whack-job mode, because it distracted attention from the latest economic news – that was perfectly set up for Trump to take political advantage of – that the economy grew an anemic 1.2 percent in the second quarter, and growth in the first quarter was revised downward. That economic news was teed up for Trump, the self-styled job-creator, and he shanked it deep into the woods, for it never to be heard from again.
Trump has gone amazingly far without having done an ounce of homework in preparation for the presidency, relying instead on feeding tweets to an anxious Republican base. His candidacy should be over by now. But it isn’t.
It scares me that people are so fed up with elites, so hate and mistrust Clinton and are so worried about the future – jobs, globalization and terrorism – that a bare majority could still fall for this self-infatuated carnival barker if he exhibited half a political brain.
And that leads to my second reason for pushing Clinton to inject some capitalism into her economic plan: The coalition she could lead. If there is one thing that is not going to revive growth right now, it is an anti-trade, regulatory heavy, socialist-lite agenda the Democratic Party has drifted to under the sway of Bernie Sanders. Socialism is the greatest system ever invented for making people equally poor. Capitalism makes people unequally rich, but I would much rather grow our pie bigger and faster and better adjust the slices than redivide a shrinking one.
There are a lot of center-right, business Republicans today feeling orphaned by Trump. They can’t vote for him – but a lot of them still claim they can’t bring themselves to vote for Hillary, either. Clinton should be reaching out to them with a real pro-growth, startup, deregulation, entrepreneurship agenda and give them a positive reason to vote for her.
It makes sense politically: Take Trump on at his self-proclaimed strength. And it makes sense economically: If Clinton wins, she will need to get stuff done, not just give stuff away.
I get that she had to lean toward Sanders and his voters to win the nomination; their concerns with fairness and inequality are honorable. But those concerns can be addressed only with economic growth; the rising anti-immigration sentiments in the country can be defused only with economic growth; the general anxiety feeding Trumpism can be eased only with economic growth.
Sanders had no plan whatsoever for growth. Trump doesn’t, either, but he can fake it. It’s time that Hillary pivoted. The country today doesn’t need the first female president. It needs the first president in a long time who can govern with a center-left, center-right coalition, and actually end the gridlock on fiscal policy in a smart way.
If Trump continues to melt down into a puddle of bile, more and more Republicans will be up for grabs. With the right pro-growth economic policies, Clinton would have an opening to not only enlist them to help her win, but to build a governing coalition for the morning after.