The economy of the USA will not remain great forever. Krugman denotes that the success of the Great Compression in bridging the gap between the poor and rich would be impossible to replicate (Krugman 54). Trump’s campaign to make America again would come close to attaining equality, although the impact would be short-lived as predicted by Krugman. The social conflict theory also points out to the economic-driven class wars that impact the entire economy as stated by Krugman. In essence, Krugman’s work is relatable to Trump’s administration and the social conflict theory. The US’ economy is influenced by politics and wealth, although changes are not permanent.

Political reform can create a fairer income distribution. Krugman argues that policies can not only result in just income but promote democracy too (Krugman 39).Trump has succeeded in closing the bridge between the poor and the wealthy through policy reforms. Trump introduced corporate tax as an incentive for businesses to invest in machinery and plants, which would boost employment (O’Brien). Additionally, the individual tax was lowered by capping the deductions made by wealthy taxpayers and got rid of the Affordable Care Act penalty. The tax policy would not only give America a competitive edge in the global market but increase the employment rate in the country. Economic reports state that the economy has grown over 4%, which is a rise from the usual 2.2% growth rate that the USA was experiencing(Pethokoukis). There is optimism that the nation would continue to grow in the short term. Comparatively, by July 2018, the unemployment rate had declined to 3.8% given that the Trump administration introduces nearly 500,000 jobs monthly. Trump’s administration asserts Krugman’s claim that policy reforms can foster fair income distribution.

Class conflicts are inevitable, and the wealthy maintain influence over politics. Despite the existence of democracy, there was a sharp class divide between the rich and the working class. Kruger notes that the rich terrorized the poor, who lived in fear of their bosses (44). Although the Great Compression reduced this gap, the rich still had influence, especially where policies are concerned. Similarly, the class conflict theory stipulates that the wealthy and working class are in a constant fight over resources (Rummel). Correspondingly, the rich would use their influence to enforce policies that would protect their interests.In Trump’s goal to make America again, he is accused of ignoring the middle class (Varrender). The middle class feels that Trump’s promise to destroy liberals and bring back employment and just wages to the Americans is yet to materialize. The citizens believe that Trump supports the conservative politics that entails safeguarding the rich business individuals at the expense of the poor. Class divide still exists and favors the rich at the expense of the poor majority.

Similar interests could influence economic outcomes. Krugman states that the success of the Great Compression is substantially due to unions. Employees that were unionized got high wages. In fact, these blue-collar workers made as much as college professors (48). Consequently, the gap between the rich and the middle class narrowed. The conflict theory acknowledges the power of class interest. People join classes due to similar circumstances, mutual dependence and common wages. Given the varying interest of each level, the conflict between opposite classes is inevitable as demonstrated by Krugman. Trump’s plan also illustrates the power of common interests. Trump united the nation by promising them economic and political prosperity and giving America the top priority. Forthwith, the President embarked on protectionist policies. Firstly, he imposed tariffs on China, which he feels threatens the USA (Firey). Trump also threatened to impose tariffs on automobiles, steel, aluminum, and even washing machines. Trump’s logic is that the foreign countries, who call his office daily to make deals, would cave to the demands of the USA. Common interests unite people, making them more formidable against their rivals.

The rich would suffer due to economic changes. Tax changes, especially in the 1950s left the wealthy with a heavier burden than the lower classes. In effect, many lost the ability to maintain their homes (Krugman 48). Coupled with the growing power of the manual laborers, the rich felt betrayed by the economic and political shifts. The class conflict theory also states that the rich would suffer due to the deteriorating economic disparity. A classless society will ensue when the conditions of the working class become poor (Rummel). Although Krugman states that empowering the working class will diminish the power of the rich, the deplorable conditions of the working class could also produce the same result. The theory and Krugman’s observation conclude that the actions of the working class and economic changes adversely affect the rich. Equally, Trump’s plan to re-industrialize America could spell doom to the wealthy in the USA. Heavy industries will be forced to relocate to the USA, where operational costs will be much higher (Varrender). Additionally, the high-living standards in the USA will force the manufacturers to pay the workers even higher, which would eat into their profits. In a bid to improve the lives of the Americans, the fortunes of the rich will be reduced. Economic changes, do not favor the rich, whose power declines while the workers gain financially.

Economic equality is not sustainable. Krugman posits that it would be impossible to defy the law of demand and supply regardless of policies (53). Further, he states that policies, especially on taxes, would weaken the incentives to do business activities, which is imperative for growth. The class theory supports this idea by highlighting the never-ending nature of class wars. The dynamic nature of society means that there will be constant power shifts that yield struggles every so often (Rummel). Trump’s economic prosperity plan is also short-lived. Instead of long-term economic growth, the tax cuts and increased government spending would last long enough until Trump’s term is over (O’Brien). Government spending of 300 billion annually would create a 21 trillion-dollar deficit that taxpayers would have to repay. While the citizens would enjoy more employment and economic growth, in the end, they will carry the burden of repaying the loans that the USA will have accrued. The economy would thus return to its 2.2% annual growth while the private investment sector will suffer. It is impossible to sustain economic equality when relying on policies and uncertain power shifts.

The US’ economy is influenced by politics and wealth, although changes are not permanent. Trump’s economic success illustrates Krugman’s notion that political reform is instrumental in enhancing a fair economy by reforming policies. Krugman also notes that the rich have substantial influence over policies, a fact that the theory and Trump’s actions concede. Interests create unity as highlighted by the unions in Krugman’s text. The American dream also unites the US citizens and prompts Trump to institute protectionist policies. As long as there are power shifts and policies, then no economic reform would be permanent. Krugman’s point is best demonstrated by the looming failure of Trump’s recent reforms. The economy of the USA is booming but not for long due to policy and class struggles.

Works Cited

Firey, Thomas. Are Trump’s Economic Policies Really Making America Great?. CATO Institute, 2018, https://www.cato.org/publications/commentary/are-trumps-economic-policies-really-making-america-great

Krugman, Paul. The Conscience of a Liberal. London: Norton & Company, 2007.

O’Brien, Matt. Trump has made second-quarter economic growth great again. But next year might be different. The Washington Post, 2018, https://www.washingtonpost.com/business/2018/07/27/trump-has-made-second-quarter-economic-growth-great-again-next-year-might-be-different/?utm_term=.0bfe4d536840

Pethokoukis, James. Has Donald Trump really made America (economically) great again?. CBNC News, 2018, https://www.nbcnews.com/think/opinion/has-donald-trump-really-made-america-economically-great-again-ncna886161

Rummel, J.Understanding Conflict and War: Vol. 3: Conflict in Perspective Chapter 5 Marxism, Class Conflict, and the Conflict Helix. University of Hawaii, 2018, https://www.hawaii.edu/powerkills/CIP.CHAP5.HTM

Varrender, Ian. Donald Trump: How his plan to ‘Make America Great Again’ could cost world economies. ABC News, 2018, https://www.abc.net.au/news/2016-11-14/donald-trump-plan-make-america-great-again-could-cost-economies/8022014

 
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