PDF Summary:The Drift, by Kevin A. Hassett

In The Drift, Kevin A. Hassett argues that former President Trump governed in an unconventional way to counter the leftward shift toward socialism in American politics and culture. Trump used audacious rhetoric and provocative tactics to bypass mainstream media and connect directly with his supporters via social media platforms. His confrontational approach alienated allies but allowed him to confront unfair trade practices and enact pro-growth policies like tax cuts and deregulation.

Hassett contends Trump framed his policies as a defense against progressive ideologies undermining American traditions and values like the nuclear family, religious liberty, and free speech. While critics viewed Trump's style as disruptive, Hassett posits it was essential to halt the Drift toward socialist dependency and restore American ideals.

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The TCJA sought to address this problem by raising the base deduction while lowering rates across the board. It provided incentives for corporations to bring their cash home by lowering the top marginal corporate tax rate to 21%, making it competitive with tax rates in other developed countries that had been lowering corporate rates while the United States stood still.

Practical Tips

• Consider adjusting your W-4 form at work to optimize your tax situation. If you notice that your tax situation has changed due to the TCJA, you might want to increase or decrease your withholdings. This can help you manage your cash flow throughout the year and potentially avoid owing a large sum or receiving a large refund at tax time.
• Create a long-term savings plan utilizing the tax changes. With the changes in tax rates and deductions, you may find yourself with extra disposable income. Use this opportunity to increase contributions to retirement accounts like a 401(k) or IRA, or start a college savings plan for your children, like a 529 plan, to maximize the benefits of compound interest over time.
• You can evaluate your investment portfolio to prioritize companies with a strong international presence, as they may benefit from competitive corporate tax rates. By doing so, you're leveraging the idea that businesses operating globally might have improved profitability due to lower tax burdens, which could, in turn, lead to better returns on your investments.
• You can analyze your pay stubs before and after corporate tax reductions to see if there's an increase in your take-home pay. If the assertion holds true, you might notice a higher net income due to changes in withholding amounts or reduced tax liabilities for your employer that could result in salary increases or bonuses.
• Advocate for policies that support domestic investment by participating in local business forums or town hall meetings. Engage with community leaders and policymakers to discuss the importance of a tax structure that incentivizes corporations to invest locally. Your involvement can contribute to a broader understanding of the economic benefits and potentially influence local economic strategies.

Trump Passed Tax Cuts Despite Opposition, Defended Economic Impact

Hassett describes how the economic team he led countered the fierce opposition to the TCJA from Democrats, from liberal think tanks like the Tax Policy Center, and even from skeptical Republicans. He and his colleagues faced a barrage of ridicule and personal attacks from mainstream economists, many of whom he previously considered associates and allies. For example, in response to the president’s claims that tax cuts would lead to a $4,000 increase in wages for households, former Treasury secretary Larry Summers said, "To accept that idea is like accepting absurd supply-side economics and the existence of the tooth fairy." The president’s own financial advisers were often skeptical of his tactics. When he publicly threatened Mexico with 25% tariffs, Hassett and Treasury Secretary Mnuchin knew that this could cause a devastating recession. However, the president's bold tactics yielded concessions from a Mexican government that would have likely ignored a more conventional demand for concessions.

As predicted by Hassett and Trump's financial advisors, the TCJA performed even better than predicted in terms of increasing household income, expanding GDP, and reducing the unemployment rate. Moreover, the designated zones incentivized significant investment into poor communities, which further helped minority groups by boosting incomes and opening up job opportunities.

Practical Tips

• You can analyze policy debates by creating a simple pro-con list to understand different perspectives. Start by choosing a current policy issue, then research arguments from various political and ideological groups. Write down the main points of support and opposition, and use this list to form a more informed opinion on the matter.
• Engage in role-playing exercises with a friend where you practice responding to ridicule or personal attacks calmly and professionally. This can prepare you for real-life situations, helping you to maintain composure and articulate your points without being defensive or aggressive.
• Create a simple spreadsheet to project your future earnings based on different tax scenarios. Input your current salary and apply various hypothetical tax rates to estimate how much you would take home under each scenario. This exercise can help you understand the potential impact of tax policies on your household income and prepare for financial planning.
• Experiment with assertive communication in your personal transactions, such as negotiating a better phone plan or a car purchase. Take note of the reactions you receive and whether you achieve your desired outcome, which will give you insight into the effectiveness of bold negotiation strategies in everyday scenarios.
• Enhance your persuasive communication by using data and case studies to back up your arguments. When you need to convince someone of your point of view, prepare by gathering relevant data and examples that support your case. If you're trying to persuade your local council to implement a new policy, present them with statistics and success stories from other communities where the policy has worked well.
• Consider upskilling to capitalize on a stronger job market. With the assertion that unemployment has reduced, this could be an opportune time to acquire new skills or certifications that are in demand. Online courses, community college classes, or professional workshops could enhance your employability in a more robust job market.
• Consider starting a small side business or service that caters to an underserved area in your community. By identifying a local need, such as a lack of certain goods or services, you can create a business plan that not only has the potential for profit but also contributes to the economic growth of that area.
• Create a social media campaign to highlight and promote minority-owned businesses. Use platforms like Instagram, Twitter, or Facebook to showcase their products or services. This can increase their visibility and customer base, which in turn can contribute to job creation and income growth in their communities.

Deregulation and Minimizing the Administrative State

This section of the book details how Hassett and the administration under Trump attempted to reverse the growth of regulation.

Trump Ordered Regulation Streamlining to Ease Business Compliance Burden

Hassett reviews the regulation timeline in America, stating that all recent presidents, whether Republican or Democrat, have expressed a desire to reduce regulation while producing little to no progress. The Obama administration added about 8% in new regulations every year, Hassett estimates, driving up regulatory costs by 1.9 trillion dollars per year. The total regulatory costs on individuals and businesses amounted to the Merchant Marine Act being everywhere, he quips. This hidden national tax exceeds the GDP of Canada, adding costs that harm consumers, raise prices, and create challenges for U.S. businesses competing in the global economy. President Trump addressed this problem with a set of executive orders that required federal departments to identify obsolete rules that cost jobs and whose costs outweigh their benefits.

Practical Tips

• Create a simple feedback system to identify overcomplications in your group projects or community interactions. Encourage peers, family members, or colleagues to point out when a rule or process seems overly complex. This could be as straightforward as a shared document or regular meeting where everyone can suggest simplifications.
• Volunteer with a local non-profit organization that works on regulatory issues. This hands-on experience will give you insight into how regulations impact costs at the community level. You could assist with campaigns that advocate for cost-effective regulations or help organize educational workshops for small businesses.
• Create a personal finance tracker that includes a "regulatory cost" category. This will help you visualize how much of your own spending might be indirectly affected by regulatory costs. For instance, if you notice a rise in your utility bills, research and note if it's related to increased regulation in the energy sector.
• Consider purchasing products from companies that advocate for lower regulatory costs. Research brands that publicly support regulatory reform or are known for their efforts to streamline compliance without compromising quality or safety. By choosing these products, you're indirectly supporting the push for reduced hidden taxes and may also benefit from potentially lower prices as these companies pass on the savings to consumers.
• Opt for services that offer transparent pricing to better understand where your money goes. Many companies now provide a breakdown of costs, allowing you to see how much of what you're paying is going towards the product or service and how much is covering additional fees. For instance, some phone carriers have plans that itemize government taxes and regulatory fees separately from the service charge.
• Develop a habit of monthly "rule audits" in your household to eliminate unnecessary routines. Take an inventory of all the rules or systems you have in place at home, like specific cleaning schedules or tech usage guidelines. Evaluate each one to determine if it's still serving its intended purpose or if it's become more of a burden. Discard or adjust the rules that no longer contribute positively to your household efficiency.

Deregulatory Actions Saved Billions and Freed Growth Resources

Hassett argues that the commitment to deregulation during Trump's presidency resulted in a more successful reduction of regulatory costs than any other president historically. The deregulatory actions taken during Trump’s first term annually reduced costs for U.S. consumers and businesses by roughly $220 billion. Hassett highlights a regulation that required helicopter manufacturers to verify the night visibility of windshields for helicopter production by having a test pilot conduct a night flight. A simple revision allowed the same goal to be achieved by darkening the production area, which saved thousands of dollars per helicopter manufactured, with no reduction in safety. This is only one example, Hassett writes, of how simple changes can save trillions of dollars that can then be re-invested into innovation resulting in job creation, wage increases, and lower prices for goods and services for all Americans.

Context

• These are the expenses that businesses incur to comply with government regulations. They can include direct costs, such as fees and fines, and indirect costs, such as the time and resources spent on compliance.
• Deregulation has been a recurring theme in U.S. economic policy, with significant efforts seen during the Reagan administration in the 1980s. Each administration's approach to regulation can significantly influence economic conditions.
• Ensuring that safety is not compromised is crucial. Regulatory bodies often work with industry experts to find alternative methods that maintain safety standards while reducing unnecessary expenses.
• Reducing regulatory costs can enhance a country's attractiveness to foreign investors, who may seek environments with fewer bureaucratic hurdles.
• Companies with additional resources may invest in training and development programs for their employees, leading to a more skilled workforce. This can increase employee productivity and justify higher wages.

Confronting Unfair Trade Practices and Renegotiating Trade Deals

Hassett lays out President Trump’s approach to trade with its focus on confronting inequitable trade methods as prior administrations had been unwilling to do.

Trump Used Duties to Pressure Allies and Adversaries Through Confrontational Trade Tactics

Hassett describes how President Trump employed tariffs effectively to obtain concessions that likely would've been rejected had they been pursued through typical diplomacy. Trump’s signature approach was to demand a renegotiation of a deal he judged unfavorable to American laborers and to announce a tariff to demonstrate he meant what he said. This unconventional approach alienated American allies and alarmed globalists; nonetheless, Hassett views it as an effective negotiating tactic. He compared this approach to Trump's property agreement strategy of suing someone just before closing to get them to renegotiate a deal. He often combined his confrontational demands with a more diplomatic approach by deploying personal emissaries like Jared Kusher to soften relations and build trust. This was the approach he used to adjust trade agreements with Japan, Germany, Australia, and South Korea, while seeking a wholly new deal with China, which President Trump saw as America’s leading competitor and trade predator.

Other Perspectives

• Tariffs may protect certain domestic industries in the short term but can also stifle innovation and competitiveness by shielding them from global market forces.
• Demanding renegotiation of deals with the threat of tariffs can strain diplomatic relations and undermine long-term alliances.
• Some allies might have respected the directness and clarity of the approach, as it removed ambiguity from trade negotiations and set clear expectations.
• The benefits gained from such negotiations may disproportionately favor certain industries or sectors, while others, including consumers, may bear the costs.
• This strategy may create a hostile environment that discourages future investment or collaboration between parties.
• Personal emissaries may not have the same level of accountability as career diplomats, which could result in a lack of transparency in negotiations.
• The adjustments to trade agreements with Japan, Germany, Australia, and South Korea may have been more of a continuation or escalation of existing trade policies rather than a novel approach.
• Labeling China as a "trade predator" might oversimplify the complex nature of global trade and the mutual benefits that can arise from engaging with China's large and growing market.

Trump's Policies on Trade: Defending U.S. Workers and Industries From Unfair Competition, Especially From China

Hassett argues that President Trump initially had a deep concern about the impact of unfair trade deals on American workers and the economies of the communities and regions they lived in. When he was a candidate, Trump referred to China as “raping” the United States, a sentiment that Hassett came to share. He argues that the trade deals negotiated by previous administrations, such as the decision to give China permanent normal trade relations (NTR) in 2000, led to outsourcing millions of U.S. jobs to the Chinese and devastated once-thriving manufacturing sectors across the nation. In Hassett’s view, China had deliberately weaponized trade to steal innovations and technological breakthroughs from corporations in the United States and Europe to enrich their own country while destroying jobs, crushing communities, and fueling drug addiction in the United States.

While leading the CEA, Hassett and his colleagues studied in detail the impact of China’s predatory trade policies, estimating that 2 to 2.4 million Americans lost their jobs because of Chinese import competition from 1999 to 2011. Moreover, imports of fentanyl, a lab-created opioid and the main driver of America’s opioid crisis, came principally from China. President Trump sought to use his authority under Section 301 of the 1974 Trade Act to force the Chinese to alter their behavior. Working with Trump, Hassett’s team recommended tariffs on goods and products that would not damage U.S. consumers and manufacturers, while increasing the costs to China.

Other Perspectives

• President Trump's approach to trade, while aimed at protecting American workers, could be seen as overly aggressive and may have led to retaliatory tariffs that also hurt U.S. industries and farmers.
• Characterizing trade deficits as inherently harmful is misleading; they can also reflect a strong domestic economy with robust consumer spending.
• The global nature of supply chains means that many U.S. companies rely on inputs from various countries, including China, to remain competitive; disrupting these supply chains can have unintended negative consequences for U.S. industries and workers.
• Accusations of intellectual property theft do not account for the legitimate and legal transfer of technology through joint ventures and partnerships between Chinese and Western companies.
• Globalization and trade policies are complex, and job losses in certain sectors may also be attributed to technological advancements and automation, which reduce the need for manual labor.
• The focus on job losses ignores the potential benefits of trade with China, such as increased export opportunities for U.S. businesses and the availability of a wider range of products for consumers.
• Focusing solely on the import of fentanyl from China overlooks the domestic production and distribution of synthetic opioids within the United States.
• Using Section 301 to impose tariffs could lead to increased prices for consumers on a range of goods, effectively acting as a tax on American buyers.
• The use of tariffs as a tool to address trade imbalances may not address the underlying causes of those imbalances, such as differences in savings and investment rates between countries.

Social and Cultural Issues Under the Trump Administration

Rethinking Immigration Policy

Hassett details how President Trump understood intuitively that America’s immigration policy made the country susceptible to the Left’s socialist agenda. Weak immigration policy weakened traditional family structures, Hassett realized, thus increasing reliance on the government.

Trump Aimed to Reform Immigration Laws to Focus on Merit and Curb Illegal Immigration

Hassett recounts how President Trump’s frustration with the lack of progress on immigration reform led him to enlist Jared Kushner and Hassett himself to work with Stephen Miller, the administration's immigration guru, to devise a comprehensive proposal. Their plan would have strengthened border security while revising U.S. immigration to focus on skills, education, entrepreneurship, and the ability of immigrants to thrive rather than merely survive.

They began by noting that 63% of current U.S. immigrants enter the nation due to a family connection. Another 22% were admitted via a lottery or due to humanitarian circumstances. Jared and Miller set out to model America’s immigration policy along the lines of Canada and Australia, which employ merit-based criteria, with a focus on would-be immigrants who earn a living rather than depend on government assistance. In this system, those wanting to immigrate would be required to demonstrate English proficiency, test their knowledge of U.S. history through exams on civics, and even write essays about their desire to gain U.S. citizenship. Instead of welcoming large quantities of immigrants with fewer skills who have family ties to current U.S. residents, America would compete globally for talent with individuals who would strengthen the family and the economy—a vision that restored, the author argues, Reagan’s promise of a bright future.

Practical Tips

• You can enhance your understanding of immigration policy by creating a simulation game. Design a board or digital game where players must navigate the complexities of immigration reform, balancing various political and social interests. This interactive approach allows you to grasp the intricacies of policy-making and the challenges faced by those who undertake it.
• Advocate for merit-based principles within your community by volunteering to serve on local boards or committees, such as school boards or neighborhood associations. Push for policies that reward merit, such as scholarships for students based on achievement or community awards for residents who contribute significantly to local improvement projects.
• Create a blog or video series documenting your journey of learning a new language or exploring U.S. history, to inspire and guide others with similar goals. Share resources, study tips, and personal insights that could benefit someone preparing for citizenship tests. Your content could include interviews with experts, book recommendations, or interactive quizzes.
• Start a family tradition of financial literacy by organizing monthly money meetings with your household. Discuss budgets, savings goals, and investment strategies to empower each family member with the knowledge to make sound financial decisions. This could involve playing educational games with younger members or comparing different savings accounts for their benefits.
• Consider mentoring a skilled immigrant who is new to your country. Reach out to local organizations that support immigrant integration and offer your expertise as a mentor. This relationship can provide you with insights into the challenges and opportunities that come with global talent mobility, while also allowing you to contribute to a more skill-focused immigration approach.

Trump's Hardline Immigration Stance Divided Opinions

Hassett, in comparing Trump’s immigration vision with Ronald Reagan's legacy, points to Trump’s hard line against undocumented immigrants as the reason his immigration proposal faced opposition, despite its bipartisan support from many political groups. The Washington Post editorial board, no friend of Trump, recognized that Trump’s plan represented an improvement over “bar-the-door” approaches of the past, acknowledging that immigration is good for the country, because new Americans "bring a wealth of vitality, drive, and boldness." However, Trump’s more restrictionist rhetoric and policies regarding illegal immigration, especially in his relentless pursuit of constructing “The Wall,” fueled enormous opposition among Democrats and alienated many moderates.

Other Perspectives

• Reagan's legacy on immigration includes the Immigration Reform and Control Act of 1986, which granted amnesty to millions of undocumented immigrants, a policy that contrasts sharply with Trump's enforcement-focused approach, potentially making the comparison between the two presidents' stances less direct.
• Bipartisan support can be fleeting or conditional, and it may not necessarily translate into legislative success or reflect the views of the broader electorate.
• The term "improvement" could be misleading if it implies that the plan was wholly positive, ignoring any potential downsides or trade-offs involved in its implementation.
• The alienation of moderates might be overstated, as there could be a silent segment of the population that agrees with stronger immigration enforcement but is less vocal about their views.

Defending Traditional Values and the Family Unit

Hassett argues that Trump understood immigration was only one front in the Left’s political strategy to undermine America. He points to how the weakening of traditional values and the traditional family unit would quicken the Drift,

Trump Resisted Progressives' Assault on Family and Tradition

Hassett points to President Trump’s support for social conservative values, and especially his vigorous defense of the nuclear family and religious liberty, as a key component of his opposition to socialist ideas. Hassett writes that Schumpeter noted that the emphasis of a capitalist society on pragmatic, secular solutions has a tendency to weaken the traditional family and support for religion. In Schumpeter's opinion, this tendency makes people more susceptible to the promises of socialism.

This evolution benefitted Trump. While Obama’s “compassionate” rhetoric regarding families appealed to the elite, his policies hurt American workers. Trump observed the devastation during Obama's presidency and responded with policies that would strengthen communities and families by making them less dependent on government handouts. He understood implicitly that policies that promote dependence on government will enlarge the constituency for the “woke” socialist agenda of the Democrats, and that constituency will necessarily want a larger governmental role.

Other Perspectives

• The definition of family has evolved, and the emphasis on the traditional nuclear family may overlook the value and legitimacy of other family structures that contribute positively to society.
• The assumption that secularism inherently weakens family and religion may not account for the possibility that secular approaches can coexist with, or even strengthen, family bonds and personal faith by fostering environments of tolerance and inclusivity.
• The increase in the federal minimum wage in 2009, which occurred under Obama's presidency, was intended to raise the earnings of low-wage workers, potentially helping those at the lower end of the income spectrum.
• Strengthening communities and families is a complex task that involves more than just economic policy; it also requires addressing issues such as education, healthcare, and social services, which may have been overlooked or underfunded.
• Policies designed to support individuals and families during times of need do not necessarily create dependence; they can provide a safety net that allows people to take risks and contribute to the economy without fear of destitution.

Donald Trump's Religious Liberty Support Energized His Base Against Progressive Policies

Hassett points to Trump's Supreme Court appointments of conservative jurists as evidence of his commitment to restore the traditional role that religion has played in American society. According to Hassett, President Trump linked financial and societal conservatism by promoting religious liberty while reducing dependence on the government. This stance attracted many voters who believed that their values and their communities were under assault by the secular goals of the Democratic Party.

Other Perspectives

• Appointing conservative jurists does not necessarily equate to a commitment to restoring religion's traditional role, as judges are expected to interpret the Constitution rather than promote religious values.
• While Trump's support for religious liberty may have energized some voters, it's important to recognize that the United States is a diverse country with a wide range of religious beliefs, including non-believers. The emphasis on one particular set of religious values could alienate individuals who do not share those beliefs or who value the separation of church and state.

Free Speech Erosion & Cancel Culture Rise

This section lays out Hassett’s case that the Left's influence over what is deemed "respectable" had evolved to threaten free speech, an essential pre-condition for the free market, and even for democratic systems.

Trump Condemned Campus and Media Intolerance and Censorship

Hassett argues that Trump understood that free speech was a fundamental principle of the American Republic. He recognized that the socialist impulse, as it gained political power, would tend to turn against free speech because of how effectively freedom of thought undermines confidence in socialism. To that end, he frequently denounced censorship on university campuses, the rise of “political correctness,” and the press's attempts to suppress dissenting views. In his view, the rise of "cancel culture" was a direct threat not only to the Constitution, but to the principles of a free market system, which are central to America. Without the ability to express and exchange ideas that run counter to what Marxists see as "truth," entrepreneurship could not occur, resulting in a stagnant socialist economy.

Other Perspectives

• The administration's handling of press briefings, where some reporters were occasionally barred or their questions went unanswered, raised concerns about the commitment to a free and open press.
• The suppression of free speech can occur under any political system, including capitalist ones, when those in power seek to maintain their position or suppress dissent.
• Some may contend that Trump's own actions, such as calling for the firing of athletes who protested during the national anthem, contradicted his stance against censorship on campuses.
• Advocating for political correctness can be viewed as an effort to create a more harmonious society by acknowledging the impact of language on societal dynamics.
• The effectiveness of "cancel culture" in actually suppressing ideas is debatable, as often the individuals who are "canceled" continue to find platforms and audiences for their views.
• Some argue that certain regulations on speech, particularly in the context of hate speech or misinformation, can create a safer and more inclusive environment that is also conducive to economic growth.

Trump's Supporters Considered Him a Defense Against Liberal Efforts to Silence Dissenters

Hassett observes that Donald Trump offered the Right its best defense against the Left's attacks on free speech. This was most evident on university campuses where conservative speakers were shouted down and, in some instances, attacked physically. His supporters increasingly viewed him as the only leader willing to resist the stifling orthodoxy of “political correctness” and to expose its anti-democratic nature. When conservatives saw their cherished authors, such as the author himself, banned from social media platforms like Twitter and Amazon, they naturally came to view Trump as the only leader willing to fight for them. While Trump might have alienated many with his policies and rhetoric, he created unity within the conservative movement by his willingness to oppose what the Left was doing.

Other Perspectives

• The notion that Trump was the only leader willing to fight for free speech ignores the efforts of other politicians, organizations, and individuals who also advocate for free speech without engaging in divisive or inflammatory rhetoric.
• Trump's approach to resisting political correctness may have sometimes crossed the line into promoting or condoning speech that is offensive or harmful, which can undermine the principles of respectful discourse and civility.
• Some conservatives might believe that a multi-faceted approach, including legislation, litigation, and the creation of alternative platforms, is necessary to address concerns about social media bans, rather than relying on a single leader.
• Unity within the conservative movement could be attributed to a variety of factors, not solely Trump's opposition to the Left, such as shared policy goals, cultural values, or reactions to global events.