As detailed on today’s BradCast, the avenues for massive corruption by the incoming Trump Administration are, shamefully, only beginning to come into view. The fact that our corporate media so utterly failed to make such possibilities clear — or even to simply explain to the electorate what tariffs actually are and how they actually work — is just one more indictment that we will spend decades paying the price for. [Audio link to full show follows this summary.]
FIRST UP… The final uncalled seat for the U.S. House in the next Congress, following the November 5th election, has finally been called. Republican Rep. John Duarte conceded on Tuesday night to Democrat Adam Gray in California’s 13th Congressional district. It was the closest race in the House this year. As of air time, just 187 votes separate the two out of more than 210,000 cast, as Dems flipped a third seat in the Golden State this year. That leaves Republicans with one of the slimmest House majorities in history, holding just 220 seats to Dems’ 215. That said, with the resignation of Matt Gaetz, and two other GOP members set to step down if confirmed to be in Trump’s cabinet, the margin for passage of any of his legislative agenda may be in question in the lower chamber in the early part of next year. Just one or two defectors, or members who are out sick, could make it impossible for Republicans to get anything through the House.
THEN… We’ve debunked the long-ago, many times discredited 2000 Mules film — supposedly documenting massive fraud by Democrats to steal the 2020 election from Donald Trump — over and over again in the past several years. Both state and federal law enforcement authorities have done so as well. Even the publisher and distributor of the documentary film and its companion book have pulled both from distribution and offered an apology. This week, so did the fraudulent film’s director and rightwing pundit Dinesh D’Souza. He issued an apology to one of the people seen on surveillance video in the film, which claimed the man was committing a “crime” by depositing “fraudulent votes” into a drop-box near Atlanta in 2020. In fact, the man was dropping off his own ballot, his wife’s and those of his adult children who lived with him — all perfectly legal in Georgia. In his apology, D’Souza (who was pardoned for his own ACTUAL election fraud crimes by Trump!) appears to blame his partners on the film, a long-ago discredited GOP “voter fraud” fraudster group called True the Vote, for misleading him about the footage they supplied for his use in the film.
FINALLY… Donald Trump has been vowing for the past year or more on the campaign trail to institute massive trade tariffs on foreign nations of anywhere from 10% to 1000% depending on his mood on any given day at any given event. He has also, for years, been lying to the American public about tariffs, claiming they are paid by the nation whose products are taxed upon import into the U.S. In fact, as our guest today explains, they are almost always paid by the consumer in some fashion and are likely to inflate prices to boot.
We’re joined today by DAVID DAYEN, investigative financial journalist, award-winning author and Executive Editor of The American Prospect magazine. He offers both a primer on how tariffs actually work (and/or don’t), and how Trump plans to use them to muscle concessions and favors from other nations, beginning with Mexico, Canada and China, our three largest trading partners from whom we import some $1 trillion worth of goods each year.
“The heyday of tariffs was the 1890s,” Dayen explains. “But the way that Trump is going about it, you’ve got to think of these tariffs as more like economic sanctions.” Sanctions that could come back to bite the U.S. via a trade war if those nations decide to slap their own tariffs on our goods in return.
Trump has claimed that his recently promised 25% tariffs on Mexico and Canada, and new tariffs of 10% on goods from China are meant to stop the “invasion” of migrants and drugs into the U.S. But that explanation, charges Dayen, is dubious at best. They are more likely intended as “simply leverage” in advance of renegotiations of the USMCA, the slightly modified replacement for the NAFTA trade treaty that was struck between U.S., Mexico and Canada during Trump’s first term.
But, as Dayen reported at The Prospect last week, “there’s a second piece to Trump’s tariff strategy” that involves corporate importers and exporters, rather than nations. That, as he explains today, is where Trump’s ability to give away tariff waivers is set to be a wildly lucrative scheme that will open the door to perhaps unprecedented corruption and payoffs from corporate interests hoping to avoid the economic pain of tariffed goods.
In his explanation, Dayen cites the famous “Cantillon Effect” which “comes down to whoever is closer to power is going to have better success in business.” And now, between Trump’s hotels and publicly-traded social media company and, perhaps most disturbingly, his new cryptocurrency venture — (which a Chinese entrepreneur currently under SEC investigation for fraud, market manipulation and other violations of U.S. law just dropped $30 million into, three weeks after the election) — it is going to be open season to buy favors and favoritism galore from the new President.
“This is what oligarchies look like,” says Dayen. “This is what Russia looks like. If you’re closer to the king, you’re going to do better. The next four years are going to reflect this tendency.”
And, yes, as he argues today, “the mind boggles at the potential for corruption”…
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