A trillion here, a trillion there - pretty soon, you're talking serious money

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Sometimes, politicians’ promises are never intended to be serious, it’s more of a nod and a wink between the promiser and the electorate. Trump’s promise to pay every adult in the US a sum of $5,000 if his party wins the mid-term elections surely fits into that category. There cannot be any serious observer who believes that Trump will be able to fund a pledge which would cost more than a trillion dollars, even if he wanted to. Well, maybe Trump believes it – I suspect that he might actually believe that everything he says is true at the time he says it, but that just reflects how far gone he is.

But supposing, as a thought experiment, that he were to try and implement it, how could it be funded? Trump and the UK government operate under the same arbitrary neoliberal economic constraints so, according to them, it can only be funded by one of three routes: increasing taxes, borrowing more, or cutting other spending. Increasing taxes in order to issue cheques to citizens would be strange, to say the least. And the cuts made to date have been unpopular enough. So, in practice, the money would show in the accounts as having been ‘borrowed’ – and that means selling bonds on the market. Those bonds would be bought by those who have the money to buy them – i.e. the wealthiest, whose taxes Trump has already cut significantly. Trump has said that the richest will be excluded from his ‘dividend’, although without defining who is included in the term ‘the richest’. They are unlikely to worry, whoever they are: they might not get the $5,000, but they’ve already had the tax cuts and they’ll also get interest on the money that they deposit with the US government – together worth far more. And the bonus (for them) is that selling that amount of additional bonds will lead to an increased interest rate. What’s not to like?

For ordinary Americans, already struggling with the cost of living (exacerbated by Trump’s tariffs, wars, and cuts to health care), the promise of $5,000 might look attractive. Increasing spending power on that scale in a short time will probably lead to inflation, and in some corner of their minds they might well be conscious of the improbability of it actually happening anyway (has Trump ever made a promise that he had any attention of keeping?), but when things look hopeless, even a small spark of hope can be worth clinging to. Whether it will keep enough waverers on his side remains to be seen – it may be a reckless and unfulfillable pledge but it isn’t entirely stupid, politically.

There is a lesson for others, though. Hopelessness is a powerful emotion. Debunking an unfulfillable pledge is easy enough to do in rational terms, but even rational acceptance of the nonsensical nature of a pledge isn’t always enough to overcome the faintest of hopes that the snake oil might just work. We should have learnt that from Brexit, but I don’t always see signs that we have. Defeating those who make pledges that can never be fulfilled requires more than rationality and logic – it requires a restoration of hope. And, as Burnham will find out, restoring hope requires a bit more than smoother rhetoric.