Econintersect: Every day our editors collect the most interesting things they find from around the internet and present a summary "reading list" which will include very brief summaries (and sometimes longer ones) of why each item has gotten our attention. Suggestions from readers for "reading list" items are gratefully reviewed, although sometimes space limits the number included.
This feature is published every day late afternoon New York time. For early morning review of headlines see "The Early Bird" published every dayin the early am at GEI News (membership not required for access to "The Early Bird".).
It is difficult not to see Trump's victory, like Brexit, as a defeat for economic liberalism; a turn away from free trade, open markets and a broadly positive attitude to migration. The difference is that Trump's rejection of free trade and free markets is far more explicit than that of the Leave campaign.
And the effects are likely to be much more profound. The UK is still a major economy, but UK developments have a relatively limited global impact, as the behaviour of global markets since Brexit shows. The economic impact of Brexit will be felt mostly in the UK and to a lesser extent elsewhere in Europe; and will in any case take many years to materialise. The US, by contrast, is still the largest and most important economy in the world.
Many of Trump’s sweeping promises will be hard, if not impossible, to fulfill (The Washington Post) President-elect Donald Trump is set to take office under immense pressure to quickly deliver on a list of audacious campaign promises that served as the cornerstone of his bid to disrupt Washington and undo pieces of President Obama’s agenda. Some of Trump’s most dramatic undertakings — such as canceling Obama’s “illegal” executive actions — can be done in his first hours as president. Other priorities, such as repealing and replacing the Affordable Care Act or building a wall on the U.S.-Mexico border, will require the approval of Congress, which will be controlled by Republicans but could still squabble over details. Others still could run into political or legal obstacles that may be difficult to overcome. Two of Trump’s ideas could probably be realized as early as his first day in office: scrapping executive orders issued by Obama — including those that shielded from deportation some immigrants who are here illegally — and appointing a special prosecutor to investigate vanquished Democratic opponent Hillary Clinton.
Liberal Warren throws down gauntlet to U.S. President-elect Trump (Reuters) U.S. Democrats' liberal firebrand, Senator Elizabeth Warren, threw down the gauntlet to President-elect Donald Trump on Thursday, telling labor union members there are financial and social issues where her party will fight him and continuing to blast the Republican. Battling bigotry is the first job for Democrats after the election, said Warren, of Massachusetts, giving a sense of how her party will operate now that it no longer controls the White House and remains the minority in both chambers of Congress. Warren did highlight areas of agreement. She said "count me in" on Trump's support of a new Glass-Steagall law to separate investment and retail banking, reforming trade deals, maintaining Social Security benefits, helping on childcare and college costs and rebuilding infrastructure.
Read Michael Moore's Full 'Trumpland' Explanation for How Trump Won (Entertainment Weekly) In the film, which Moore filmed over two days in Ohio in September, the Oscar-winning director explains how voters in swing states like Michigan, Pennsylvania, Ohio, and Wisconsin -- all states won by Trump on Election Day -- could put the GOP nominee into power. (Moore called those states "Brexit states.") Moore's remarks in the video, which echoed comments he wrote on his website earlier this year, were even picked up by Trump himself, who tweeted out an edited video of the Michael Moore in Trumpland segment, and said he agreed with Moore. (Moore later slammed Trump for promoting the edited video.) In the wake of Trump's victory, Moore tweeted, "The American Brexit. In June, Britain voted to leave Europe. Yesterday, America voted to leave America." In this article, Moore's full comments from Michael Moore in Trumpland, which provide further context to his post-election tweet.
Trump won because college-educated Americans are out of touch (The Washington Post) The most important divide in this election was not between whites and non-whites. It was between those who are often referred to as “educated” voters and those who are described as “working class” voters. The reality is that six in 10 Americans do not have a college degree, and they elected Donald Trump . College-educated people didn’t just fail to see this coming — they have struggled to display even a rudimentary understanding of the worldviews of those who voted for Trump. This is an indictment of the monolithic, insulated political culture in the vast majority our colleges and universities.
Judge rejects Trump bid to bar campaign statements from fraud trial (Reuters) A U.S. judge on Thursday tentatively rejected a bid by Donald Trump to keep a wide range of statements from the presidential campaign out of an upcoming fraud trial over his Trump University venture. The ruling came in advance of a pretrial hearing later on Thursday where lawyers for the president-elect will square off against students who claim they were they were lured by false promises to pay up to $35,000 to learn Trump's real estate investing "secrets" from his "hand-picked" instructors. Trump owned 92 percent of Trump University and had control over all major decisions, the students' court papers say. The president-elect denies the allegations and has argued that he relied on others to manage the business.
Americans really did crash the Canadian immigration site on Election Day (USA Today) Americans really did crash the Canadian immigration site Tuesday night as polls closed on the West coast and the first results indicated Donald Trump would be president. There were 200,000 users on Canada's immigration website around 11 p.m. EDT on Tuesday when it began to experience difficulties, according to the Canadian Broadcasting Corp. Of those, 100,000 were from U.S. internet addresses. At the same time the previous week the site had just 17,000 visitors, CBC said. Having 50% of the site's traffic come from the United States is extraordinary. Normally Americans make up between 8.8% to 11.6% of its traffic, according to Immigration, Refugees and Citizenship Canada, the Canadian version of what in the U.S. is United States Citizenship and Immigration Services. At the time of the crash, 50% of the site's visitors were from the United States, 37% from Canada, 3% from Australia and 1% from the United Kingdom.
Mexico will not pay for Trump wall, but seeks cooperation (Reuters) Mexico said on Wednesday it would work with Donald Trump for the benefit of both nations after his surprise U.S. election win, but reiterated it would not pay for his planned border wall, which stirred up deep resentment during a fraught presidential campaign. As Trump strode toward victory, the peso plunged 13% in its biggest fall since the Tequila Crisis devaluation 22 years ago, before paring losses to trade down 8.7% at 19.91 per dollar. Still, officials held back from taking action to support the peso despite it hitting lifetime lows overnight. Trump's threats to dump the North American Free Trade Agreement (NAFTA) agreement with Mexico and Canada, and to tax money sent home by migrants to pay for the controversial wall on the southern border, have made the peso particularly vulnerable to events in the U.S. presidential race.
Other Scientific, Health, Political, Economics, and Business Items of Note - plus Miscellanea
A Quick Note on a Universal Basic Income (Greg Mankiw) Hat tip to Scott Santens (Twitter). Conservative neoliberal economist Scott Mankiw discusses universal basic income. He considers revenue neutral proposals. (Econintersect: There can also be viable proposals which involve deficit spending (growing the amount of money ion circulation). Whereas Mankiw's proposals are entirely income redistribution within a fixed pie, these other proposals would be growing the pie.) Prof. Mankiw says that the following two proposals are entirely equivalent:
A. A universal transfer of $10,000 to every person, financed by a 20-percent flat tax on income.
B. A means-tested transfer of $10,000. The full amount goes to someone without any income. The transfer is then phased out: You lose 20 cents of it for every dollar of income you earn. These transfers are financed by a tax of 20 percent on income above $50,000.
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