Trump as Trickster

Lewis Hyde's Trickster Makes This World  is a brilliant look at how trickster gods from cultures on every continent seem to be a constant, the gods whose mischief and disdain for the systems that order daily life disrupt those systems. Sometimes the chaos they unleash is destructive, sometimes creative, and sometimes merely affirms the need to restore the status quo.

Loki

The tricksters Hyde cites include Krishna and Coyote, from two different Indian cultures; Monkey,  and Eshu from two different African cultures; Hermes from the Greeks and Loki from the Scandinavians. Hyde calls them boundary crossers whose disdain for norms both help to change norms and to define them.

Hyde writes that prophecy is not about prediction in the sense that it predicts that the stock market will fall in October. Rather, prophecy reveals truths that will still be true in the future.  This section of his book from 1998 is prophetic about Trump.

These threats on both sides, to the shameless person and to the world around him are, I think, what sometimes lead people to ask if the trickster isn't really a psychopath. Certainly there are parallels. Psychopaths lie, cheat, and steal. They are given to obscenity and, as one psychologist puts it, exhibit "a confusion of amorous and excretory functions." [Think pee tape.] They're not just antisocial, they're foolishly so (they "will commit thefts, forgery, adultery, fraud, and other deeds for astonishingly small stakes and under much greater risks of being discovered than will the ordinary scoundrel"). While they are often smart, they have a sort of "rudderless intelligence," responding to situations as they arise but unable to formulate any coherent, sustainable, long-term plan. They are masters of the empty gesture, and have a glib facility with language, stripping words of the glue that normally connects them to feeling and morality. Finally, they lack both remorse and shame for the harm and hurt that trail behind them. One way or another, almost everything that can be said about psychopaths can also be said about tricksters. [p. 158 of Hyde's Trickster Makes This World, 1998, Farrar, Straus and Giroux, New York, NY.]

Why, if this definition of trickster so aptly describe him then, is Trump so popular?  That's like asking why are the trickster gods so compelling that they have shown up in so many cultures? Perhaps it is because tricksters like Trump mock what people reverence. You can't really hope that a trickster will abide by norms. He defies them. Hyde quotes another author, Rickets, who shows how trickster stories can be read as parodies of shamanism.

In shamanic initiation, for example, the spirits kill and resurrect the initiate, often placing something inside the resurrected body - a quartz crystal, for example - which the shaman can later call forth from his body during healing rituals. If someone in your group claims such powers, you might find wry humor in stories which have Coyote, when he needs advice, calling forth (with much grunting) his own excrement. ... Trickster's failure implies that shamanic pretensions are daydreams at best, fakery at worst. [p. 294 of Hyde's Trickster Makes This World.]

If experts are our modern shamans, then Trump is continuing with this tradition of mocking shamans in a hundred ways that are variants on his appointing Rick Perry as Energy Secretary; Rick Perry who - in a debate - could not even remember the name of the Energy Department he wanted to eliminate. Only a trickster would make a person who thought so little of an agency that they both wanted to eradicate it and couldn't remember its name as the leader of that agency. Trump thumbs his nose at the experts who pretend to understand and predict the systems - from weather systems that define our climate to the financial systems that create booms and busts or even the government agencies he is supposed to manage - that define our world. He thumbs his - well, whatever - by bragging about the size of his penis in a presidential debate. He's shameless and his supporters love him for this for at least a couple of reasons. If the experts deserve mocking rather than reverence then even the non-experts can feel superior - or at least equal - to those experts. And once the standards have been mocked by the trickster Trump - whether when he has sex with porn stars while his wife is home with a new baby or when he shares conspiracy theories with Alex Jones - there is no longer a credible basis for calling them deplorable.

That said, past generations paid a great price for the transition to something new. Trump may be the price we pay and if so, he may be a bargain by contrast.

In 1860, Abraham Lincoln became the 6 year-old Republican Party's first president. The new Republicans laid in place a set of policies that helped the country catch the wave of the industrial economy.  After the Great Depression, the modern Democratic Party - from FDR to Kennedy and Clinton - created a set of policies that helped the country to catch the wave of the information economy. Waves don't come out of calm seas and the chaos of the Civil War and the Great Depression and the second world war seemed - in retrospect - to mark a transition from an old to a new economy. During Lincoln's time we had a literal battle between Union soldiers and Confederates, two groups with very different ideas about whether we lived in a world contained by states or nations.  The transition ushered in with FDR's engagement in the second world war and Clinton's signing of NAFTA and WTO trade agreements was from national to international economic and political realities. Republicans made us bigger than states; modern Democrats made us bigger than a nation. Chaos in the form of bloody wars and assassinations marked these messy transitions into something new.

I think that we're now moving from an information to entrepreneurial economy and such a transition seems inevitably messy. It is unsurprising that a trickster has shown up at this time of transition. Tricksters are boundary crossers, creating and thriving on the chaos that marks transitions. Trump might just be the trickster who is disrupting the status quo enough to make it easier to create the next, new thing. We always pay a price for moving into the new; we still don't know the final tab for the Trump presidency but it could be one of the lowest we have ever paid, which seems to me just one more sign that we're making progress even if Trump - who as trickster belongs to earlier, more archaic worlds - is not.

Unemployment Rate: What is Next After the Longest Drop in History?

We have data on monthly unemployment rates in the US from January 1948 - shortly after World War 2 - through September of 2017. During that time it has never been lower than 2.5% (which it was in May and June of 1953 at the peak of the post war recovery) and never been higher than 10.8% (which it was in November and December of 1982 in the depth of the Volcker-induced recession during Reagan's first term).

Half the time it is below 5.7% and half the time it is above 5.7%.

Unemployment rates of 3.8% or lower put you in the top 10%; rates of 7.9% or higher put you in the bottom 10%. 80% of the time, unemployment rates have bounced between 3.9% to 7.8%; that range defines normal. Outside of that range things are great or awful.

At the depth of the Great Recession - in October of 2009 - unemployment hit 10%. That's among the worst 1% of all months. (Well, in the worst 1.2%.) Since then it has steadily come down during the longest uninterrupted streak of job creation on record. Last month - the end of the streak - unemployment hit 4.2%, a value in the best 17%. We're in the top 20% but not yet top 10%, really good but still not great.

One simple answer as to whether unemployment will drop further is to say that it's only been lower than its current rate of 4.2% 15% of the time. Again, unemployment rates bounce between 4% to 8% most of the time; it doesn't seem to last long outside of that range. That alone suggests that the unemployment rate will soon stabilize or even rise.

Another interesting thing to note is that this is an exceptionally long recovery. Unemployment peaked 8 years ago this month - in October of 2009. A steady drop in unemployment has never lasted longer. The next longest improvement, the drop from the 10.8% high in December of 1982 to its low of 5% in March of 1989, took just over 6 years before beginning to rise again. Unemployment rates steadily drop for a time and then steadily rise, and steady improvements usually last just a few years, not 8 yerars.

At the start of a recovery people are well aware of all the reasons things can go badly. After all, they are just coming out of a period in which things did, indeed, go badly. Remember how early in the recovery people were anxious about Greece, China's stock market, deficit spending, the mortgage market, Greece, etc. People were looking for reasons that things could go wrong. Now? Now they're looking for reasons that the recovery could continue and less aware of reasons it might not; this makes economies more vulnerable.

There are reasons the unemployment rate could drop further and reasons it won't. 

Among the reasons it could drop further is that our labor force is growing more slowly than it did a decade ago. From 1955 to 2005, US labor force (folks aged about 25 to 65) grew 1.7 percent a year. Since then it has grown about 0.5%. As companies seek to hire, they'll have fewer options; all else being equal, this would translate into lower unemployment.

Another reason it could drop further is because of a drop in immigration. Again, this lowers the number of available workers and could mean that employers will draw from the unemployed rather than the newly available. If immigration rates drop enough, the labor force might even stop growing.

Curiously, the reasons that the unemployment rate could start to rise again include a drop in immigration. Immigrants don't just find work here. They buy houses, clothes, meals and all the things that drive demand for goods and services that, in turn, drives demand for employees here. If Trump's policies are successful at slowing down the flow of immigrants, he'll actually succeed at destroying jobs.

Trade, of course, could still provide jobs for American workers. Assuming, of course that Trump does not ignite trade wars. Simply put, he wants trade wars with our biggest trading partners - threatening to blow up Nafta and trade deals with China - and if he gets his way we'll see a drop in trade with our three biggest trading partners. That will destroy American jobs.

The third reason that the unemployment rate could rise is because Trump is planning to cut spending and taxes. Tax cuts will disproportionately go to the rich. If you give a poor guy a $1,000 in tax cuts, he's likely to spend $900 of it. When you're making only $30,000 a year, you could use that extra $1,000. If, by contrast, you give a rich guy $1,000 in tax cuts, he's likely to save $900 of it. When you're already making $500,000 a year, an extra $1,000 isn't going to change your vacation plans. Government spending ripples throughout the economy in ways simple (the employees of the State Department buy coffee at that little coffee shop across the street) and complex (the Medicare recipient pays a medical bill which enables the hospital to make a down payment on a new imaging technology and the young doctor to make a down payment on a new car). If you cut $1,000 in government spending and then give a $1,000 tax cut to someone rich, you'll reduce spending, reducing demand for the goods and services that drives demand for employees.

What is the punchline? It depends on whether Trump ends trade deals. In either case, unemployment rates are likely to start rising again within 3 to 9 months. If he ends trade deals, they'll begin to rise sharply.

If Trump fails to end trade deals:
Unemployment will fall to no lower than 3.8% within the next six months, after which time it'll start to rise again. Given drops in the growth of the labor force, job creation could turn negative at least one or two more months within the next year even as the unemployment rate remains relatively stable.

If Trump succeeds in ending trade deals like Nafta:
Unemployment will - at best - hit 4% near term but may have already bottomed out at the current 4.2%. We'll have a recession and the unemployment rate will rise to 6% to 8% within a year or two.