If you were worried about whether Donald Trump would destroy our economy, you don’t have to worry any more. In an interview last week on CNBC, Trump explained how he was going to destroy our economy. Bonus points: he will not just destroy our economy, but likely most of the world economy.
Don’t believe me? Just read this article by Matthew Yglesias in Vox.
Short version: you remember how the out-of-control national debt is a really bad thing. Heck, most of the argument against Obamacare was that it would explode the national deficits (it didn’t, but still). Well, according to Trump you don’t have to worry about that any more. Trump just said “I am the king of debt. I love debt. I love playing with it. … I would borrow, knowing that if the economy crashed, you could make a deal. And if the economy was good, it was good. So therefore, you can’t lose.”
Trump is describing his career as a “successful businessman”. Using his Trump brand, he has repeatedly borrowed other people’s money for a series of “huge” projects. When the projects failed, he declared bankruptcy, leaving his investors holding the bag. When they succeeded, he raked in the cash, despite having invested little of his own money. You could call it a “celebrity economy”. Trump’s brand is a license for him to print money.
There’s just one problem. As Yglesias puts it:
With his statement, Trump not only revealed a dangerous ignorance about the operation of the national monetary system and the global economic order, but also offered a brilliant case study in the profound risks of attempting to apply the logic of a private business enterprise to the task of running the United States of America.
If the United States were forced into bankruptcy, all hell would break loose. Your savings would likely lose most of its value, including your home. Many businesses (including most banks) would fail. Unemployment would spike to unprecedented levels.
Want even more evidence that Trump could cause this? Trump recently proposed that Puerto Rico declare bankruptcy to solve their financial problems, even though doing so is illegal. Taking advantage of the bankruptcy laws to dump his debt on other people has worked very well for Trump, and it is the only game he knows.