Luttwak wrote in the New York Times* that deregulation is the greatest part of the solution to the frustrating economic position of most Americans.
Deregulation (removing protections) could make the wage earner’s pay check go further. Because of the reduction of the cost of compliance by manufacturers, prices would decline, in theory. (Removal of protections would also have an effect on the quality of life.)
Based on my business experience, I know that when the cost of manufacture goes down, prices will not go down as much. When costs go up, prices are increased by that amount plus something for profit. The profit part is not likely to reverse.
Luttwak says that Trump and his daughter, Ivanka, are addressing the common voter where they live economically, and for that reason, we could have sixteen years of the Trump Crime Family in office, Donald followed by Ivanka. My elitist response to the possibility is hysteria, the word Luttwak used for an irrational over reaction. That’s me.
As an alternative to removing protections to bring prices down, let’s consider bringing income up. The old minimum wage of $7.25 would be about $20 just by keeping up with inflation. Corporate leaders could let loose — share — some of their greatly increased profits in recent decades. Record high profits with record low wage-share are my elitist complaint.
Legal protections (formerly called regulations) for the people are what has set the United States up as the work, education, and living standard for the world. It has inspired a lot of progress in civilized society. Of course, there have been some who couldn’t afford to even consider it, but the image of our having done it keeps hope going.
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* Luttwak, Edward N., “Why the Trump dynasty will last sixteen years,” New York Times, 2017/07/25, The Literary Section online.
