Washington, DC -- (ReleaseWire) -- 02/13/2017 --BENNETT: Dr. Herb London is President of the London Center for Policy Research, Senior Fellow at the Manhattan Institute. He is a noted social critic whose work has appeared in every major newspaper and journal in the country, including such publications as National Review, American Spectator, Wall Street Journal, Fortune, Washington Times, New York Magazine, and New York Times. He is the author or editor of twenty-seven books, including the new book, The Encyclopedia of Militant Islam. One reason I have him on today is that I enjoyed an article of his following the November election titled "Why the Forgotten Citizen Elected Donald Trump." His thinking was that these forgotten citizens are facing dwindling employment opportunities, sensing the collapse of traditional culture, and are understandably angry and resentful. They don't fully understand what has been happening to them, and see a Washington more concerned with Black Lives Matter and the LGBT community than their own issues. Dr. London, welcome to Financial Myth Busting.
LONDON: Pleasure to be with you. Thank you.
BENNETT: There is so much economic despair in the United States today, it's as if there are almost two USAs: one that you see on TV in the media, which is portraying happiness and wealth; and then the second America, composed of vast numbers of those forgotten citizens you wrote about, left behind. What's fascinating to me is that despite the enormous suffering of these millions who are suffering quietly and in solitude, they're not the ones marching in the streets. Why do you think that is?
LONDON: They're not marching in the streets partially because of the despair. One of the things that you have to understand is that the level of labor participation in the United States circa 2017 is roughly the same as it was in 1936. That means that there are more than 50 million Americans who are idle, who are idle, who are not in the labor markets. They don't count in unemployment statistics--they are no longer counted at all. And they recognize the fact that they aren't counted economically, and they don't count socially. These are Americans who are left out of the equation. They are not variables in the American equation, and that is one of the reasons there's resentment. And you say, "Why are these people angry? They're angry because those people that march up and down the corridors of K Street in Washington, DC, those people that are in Congress today, by and large don't concern themselves with people who are not in their labor market. They don't concern themselves with people who no longer count. They don't concern themselves with people who aren't very much a part of what makes this country vibrant. They do make the country vibrant, but as I said, they are lost in the swell of interests that are obviously far more important from the standpoint of the New York Times than these people who are forgotten Americans.
BENNETT: Do you think the despair and desperation that we've seen so far is just a hint of what's to come?
LONDON: Well, I think that Trump has the right idea. I mean, look, the Trump campaign was based on the proposition that these forgotten Americans need a voice. He became the embodiment of that voice. I don't know if he's the right person to play that sort of role, but there is no question that history has imposed this on him. That is his role. So this billionaire is now the spokesman for the forgotten American. Very odd, very strange. A lot like King Saul in the Bible, an unlikely candidate to be the leader of the Jews and yet he does become the leader. So, we find ourselves in the position where many of the things that Trump was saying, including the infrastructure development that is necessary in America, with the creation of jobs that comes along with it, very very sound thinking. There is no doubt that he is thinking about lowering the tax rates so that we get not only simple taxes but so that the rates are lower so that there's greater incentives for involvement in the economy. And we'll see economic growth at the three and a half to four percent level. We get up to four percent growth in the United States and many of the problems we have had in the past are largely mitigated. I think that he's moving in the right direction. Can he sustain that? Hard to say.
BENNETT: You always wonder what's going to be the first domino to fall. What is going to actually tip this off. I wonder if it is Brexit. Britain's supreme court has effectively cleared the way for the UK to do what voters sought to do and leave the European Union, but the EU seems intent on making the process as painful as possible. Do you think that might be the instigator, or are you confident that the UK can detach itself and be stronger as a result?
LONDON: One of the things that happened was that the first meeting Donald Trump had with a foreign dignitary was Theresa May, and that in a sense was quite symbolic. What he was saying to Theresa May, I think, although I of course wasn't privy to what went on, was 'Let's create a cross-Atlantic trade organization with the UK and the United States,' which may even be a pathway to an Anglosphere trade organization that would include Canada, New Zealand, Australia, the United States and the UK. That is an extraordinary development which even sent a message to the Chinese about their desire for a Silk Road. So, I think that by and large, this is an opportunity for the United States and for the UK, and even if the Europeans are very unhappy, the independence that has now been granted to the UK also provides them with independence for economic decisions.
BENNETT: Trump has been notoriously cool on expanding free trade, though. How do you feel he will do on this front?
LONDON: I think, as far as trying to create new trade agreements, it is Trump who has been the beneficiary of Brexit, in a strange way. People in the UK, who are very concerned with these faceless bureaucrats in Brussels telling them whether they can use an electric teapot or not, not unlike those Washington bureaucrats who make decisions for people without having the foggiest idea of what the citizens' lives are all about. Why are they doing this to us, and who are these people? These are the kinds of concerns that Trump has raised, making the point that Washington, DC is a problem. It's not unlike the problem that was raised by Ronald Reagan when he was President.
BENNETT: What was fascinating out of this is that they were pictured holding hands, and May said that Trump represents America's best hopes and aspirations. It was surprisingly more upbeat than expected we would ever see from Trump. Do you think Trump might be more of a statesman than any of us gave him credit for?
LONDON: During the course of the campaign, what you found was a man who didn't appear to be, let's call it intellectually adept. He appeared boorish. He appeared uncouth. So, you might get an impression based on what happened during the course of the campaign that this is not a man who is going to be able to provide the kind of leadership that the country needs. And yet, remarkably, within the first ten days of this administration we find ourselves in the position where we're looking at Trump and I must say, I've been startled, absolutely startled. I have a very positive impression. Again, it's very difficult to know if what happens during the course of the campaign is what will happen during the moment of governance.
BENNETT: That's true. Trump is certainly an unorthodox leader. I can't think of an earlier American president whose path he seems to be following. He is reportedly a fan of Andrew Jackson. Do you see any analogues for Trump, either from American history or on the world stage? Anything to help us anticipate what to expect from a really unpredictable man?
LONDON: Well, the one thing you can predict, which was true of both Andrew Jackson and Donald Trump is that they're both populists. They both reach out to the average guy. Neither of them was actually an "average guy," though. Jackson was an elitist. Trump is a billionaire. It's very interesting and unusual, for anyone in American history, for someone with the kind of background that Donald Trump has to be the voice, as I said before, of the forgotten American. He has capitalized on that very effectively.
BENNETT: I agree. I think Trump is largely governing much as he said he would, much to the chagrin or delight of the voters and the media. If you were to give him a performance review, how would you say he's doing so far? Obviously he could have done without the petty squabbles over his Inauguration crowd size, and the rollout of his travel ban from certain Middle Eastern countries was problematic, but how would you review him over all?
LONDON: I was involved in university life for many years, and I'm a pretty tough grader. I would say I give Donald Trump at least a B+.
BENNETT: That's a pretty good grade.
LONDON: That's not a bad grade. It's true we live in the age of grade inflation, but I give him a lot of credit for the direction he's taking the country, for the rhetoric he's employed as president, and for being the person that represents so many that need a voice in Washington, DC.
BENNETT: Speaking of his governing style, and moving back to Theresa May, I know that May was trying to seek the preservation of the NATO security alliance, which Trump infamously derided as obsolete. From what we see of Trump's cabinet appointments so far, do you see any major alliances as a result of his ascendancy?
LONDON: It's difficult to say so far. I think the National Security team he's assembled is first-rate. I hold Mike Flynn in very high regard, Jim Mattis is outstanding, John Kelly is terrific. So, I think that he has assembled a very good team. In fact, if I look at the cabinets of the last five or six presidents, I would say that this team is as good as, if not better than, what has been assembled in the past. So, I give very favorable grades to Trump on this score as well. He's got the right people. Now, when you talk about foreign affairs, there are lots of imponderables, in part because whatever actions we take may not be related to actions that are taken by an enemy or a potential enemy. We have no idea how the Chinese are going to respond to Trump, we have no idea what Putin is actually going to do. Will Putin try to defang NATO, will he be engaged in more saber-rattling over the Baltics. Will there be new contests that occur in Ukraine. There are all kinds of unknowns.
BENNETT: You recently wrote a very compelling piece on the real Russia under Putin. You painted a very dark picture of how the country's government speaks out of both sides of its mouth, and pursues often ruthless means toward achieving Putin's goals. Do you think Trump, who often appears smitten by Putin's flattery, truly grasps what Russia is up to? What part do you think Trump plays in Putin's larger geopolitical chess match?
LONDON: Ultimately, the president of this country, like the president of every other country, represents the interests of that state. Every country has its own interests. So, the question is, Putin is acting in a manner consistent with Russia's goals, which is dying at home but succeeding abroad. The reclamation of these glories of the past is the reason why Putin remains in power. So he's got goals in mind. At some point, these goals are going to diverge from American interests. When they diverge, Trump is going to have to make a stand, and that stand becomes critical. Now, we don't know when it's going to happen, but it will happen. Will it happen in Syria, will it happen in the Crimea, will it happen in Eastern Europe? It's difficult to say, but it will happen. That's the real test, when all of this 'they're good friends' doesn't matter. What will really count is how Trump responds when the interests of the two nations diverge.
BENNETT: Let's talk about that, because the Trump administration has signaled that it's going to roll back the sanctions that the Obama administration placed on Russia as a payback for its hacking. The friendship still seems to be working to Putin's advantage.
LONDON: Well, at the moment, it may be working to Putin's advantage, but for years what we've seen is a retreat from the United States' involvement. When Russia got involved in Syria, there was no pushback from the feckless Obama administration. Not recognizing that Russia had its own interests in mind, we delegated to them, said, 'Here, you deal with this problem.' We invited the Russians back into the Middle East when they were forced out of the Middle East by Sadat in 1973. Again, part of the difficulty was they way the United States conducted itself vis-a-vis Russia. Now, of course, there's a new sheriff in town, and we don't know how Putin is going to respond when Trump comes to the realization that he's not happy with they way they're conducting themselves. Of course, you start out any negotiation by being positive. Trump is going to say to Putin, 'Where do our interests converge? Where are the areas where we can work together?' Can we work together dealing with militant Islamic groups across the world? Is that something we can work on together? It may be, but again I also can assure you that when you look at interests across the globe, you will find that America and Russia have interests that clearly diverge in many areas.
BENNETT: The other big foreign policy news came as President Trump told Mexico's president not to bother visiting if Mexico wouldn't agree to pay for the border wall. Nieto agreed and cancelled his meeting. Is this a relationship that has any chance of surviving Trump's personality and his administration?
LONDON: Absolutely. It will survive. Nieto said, 'I'm not coming to the United States.' Boo-hoo. So what? I mean, do you find that your life has changed in any way? Has this been a dramatic policy venture of some sort? The United States and Mexico have a lot of reasons to remain good friends, and that will continue. Again, Trump has his notions about the wall. These issues are almost pettifogging matters, and yet a relationship will emerge.
BENNETT: How should Trump both make good on his pledge to secure the southern border while not completely alienating our ally in Mexico?
LONDON: First of all, people forget that money has already been allocated for the creation of a fence. The fence has gone on for more than a thousand miles. So, when Trump says he's going to build a wall, what he's really saying is that he's going to complete the fence that has bi-partisan support. One of the things he wants to do is prevent the drug trade from spilling over into the United States, where you've seen the adverse effects all across America. So, Trump has an argument here, but payment of it will probably come from, I don't know, a trade agreement or perhaps it's going to be in entry and exit strategies. There are a variety of ways in which you can pay for it, but the idea that Mexico is going to write a check and hand it to Donald Trump is absurd.
BENNETT: My last question to you is about Trump's Supreme Court nominee to replace Antonin Scalia, Neil Gorsuch. He says this fulfills his campaign promises, and it seems to also be politically smart, because he was already confirmed to the federal bench with complete support in 2005. What do you make of this pick?
LONDON: Keep in mind, the Democrats supported him then without anyone opposing it. There wasn't one Democrat that opposed Gorsuch. So now, what has happened in the last couple of years to make Gorsuch unacceptable to the Democratic Party? Nothing, except that he's a Trump nominee. He's the same guy. Went to Columbia, went to Harvard Law School, went to Oxford. Same person. Same guy who wrote very Scalia-like opinions, the same guy who was an originalist then and is an originalist now. It's absurd for the Democrats to say he's unacceptable.
BENNETT: Thank you so much, Dr. London, for being on Financial Myth Busting.
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