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Column: Davos, where the rich and powerful go to show off their ignorance

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Column: Davos, where the rich and powerful go to show off their ignorance

Those of us who diligently follow financial forecasts know that the go-to place for mapping out the course of the economy over the coming 12 months is Davos, Switzerland, the host city of the annual World Economic Forum every January.

Rule of thumb: Listen closely to what the gathered business and political leaders predict, then take the other side. Or as the American economist Kenneth Rogoff said in 2020:

“No matter how improbable, the event most likely to happen is the opposite of whatever the Davos consensus is.”

“I think this negative talk about MAGA is going to hurt Biden’s electoral campaign.”

— Jamie Dimon, JPMorgan Chase CEO

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It’s hard to find a single explanation for the long history of Davos attendees missing the signs of impending world recessions or confidently forecasting recessions that never arrive (among other errors).

But an interview of Jamie Dimon, the chair and chief executive of JPMorgan Chase & Co., aired Wednesday morning on CNBC offers a clue: The potentates and plutocrats come to Davos without the slightest clue of what they’re talking about.

As he basked in the limelight of a CNBC kiosk with snow-flecked Davos evergreens behind him and earnest, parka-garbed CNBC anchors in front of him, Dimon unburdened himself of some remarkably delusional judgments of current affairs and recent politics.

Dimon’s general take on politics was that Donald Trump wasn’t that bad as a president, and therefore Democrats should be more careful about attacking him and his supporters. “I think this negative talk about MAGA is going to hurt Biden’s electoral campaign,” he said.

Dimon attempted to get into the minds of MAGA supporters. “I don’t think they’re voting for Trump ’cause it’s family values,” he said.

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“Be honest,” he said. Trump is “kinda right about NATO. Kinda right about immigration. He grew the economy quite well. Tax reform worked. … I don’t like how he said things about Mexico, but he wasn’t wrong about some of these critical issues, and that’s why they’re voting for him.”

We’ll have to unpack some of this ourselves, because Dimon’s CNBC interlocutors sat by silently as he spouted off. If they bestirred themselves to ask “how is he right?” those questions and his answers didn’t make it into the broadcast. So let’s begin.

Is Trump “kinda right about NATO”? While he was president, he told European Commission members (at Davos!), that “if Europe is under attack we will never come to help you and to support you,” according to Thierry Breton, a French commissioner. He said Trump added: “By the way, NATO is dead, and we will leave, we will quit NATO.”

Trump’s repeated promise to withdraw from NATO prompted Congress to insert a provision in the annual Defense Appropriations Act barring any president from quitting NATO without the approval of two-thirds of the Senate. The act, including that provision, was signed into law by President Biden in December.

If Dimon was referring to Trump’s withdrawal promise or his denigration of the mutual defense provision of the NATO treaty, which commits all NATO members to defending against an attack on any of them, then Dimon’s assertion contradicts his own opinion of the necessity of supporting Ukraine against Russia in the CNBC interview.

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That battle “is about freedom and democracy for the free world,” Dimon said, urging American political leaders to explain to voters why supporting Ukraine is necessary. Ukraine “may be about whether the world is free and safe for democracy for a hundred years.” Ukraine isn’t a member of NATO, but supporting a European country under attack is obviously incompatible with quitting NATO.

Immigration? Trump’s most recent notable comment on this topic is that immigrants are “poisoning the blood of our country,” uttered at a Dec. 17 rally in New Hampshire. Was he “kinda right” about that?

The Trump administration’s immigration policy encompassed the outstandingly inhumane practice of family separation, under which thousands of children were forcibly removed from their families on this side of the southern border; as many as 1,000 children are still missing. Was that “kinda right”?

In October, the Biden administration settled a lawsuit over the policy by allowing families to remain in the U.S. while they search for their children and committed to ceasing family separations for eight years.

Dimon stated during the interview that securing the border is imperative. He wasn’t asked about, and didn’t mention, who’s responsible for blocking a sensible immigration policy. It’s Trump’s party: The House GOP caucus is refusing to accept a deal on immigration unless it includes draconian provisions that would ban almost all asylum and mandate the construction of a border wall — something that Trump was unable to accomplish himself during his four years in office.

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Did tax reform work? No doubt the 2017 tax reform worked for taxpayers in Dimon’s class and corporations like his. But there’s is no discernible evidence that it achieved what its GOP sponsors claimed were its goals, growing the economy and raising so much government revenue that it would “pay for itself.”

As a share of gross domestic product, federal tax receipts plummeted after the 2017 tax cuts to 16% in 2020 from 17.4% in 2016. Nor did the tax cuts have any noticeable effect on wages, despite promises from Trump officials that average wages would be pumped up by $3,000 to $7,000 per worker.

The study that predicted such an outcome, observed Republican economist Bruce R. Bartlett in Senate testimony last May, was “more of a public relations document than a serious analysis; once its purpose was served and the legislation enacted, it was forgotten.”

The tax cuts did have a noticeable effect in the world Dimon occupies, however. The average tax rate paid by his corporation, JPMorgan Chase & Co., fell to 24.5% of net income in the five years since the cuts from 38.6% in the five years before their enactment.

It may be true or at least arguable, as Dimon said, that Trump “grew the economy quite well.” But there’s no question that in many respects his record pales in comparison to his successor’s.

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In the first three years of his term — leaving aside the pandemic year of 2020, when employment cratered — Trump achieved average annual job growth of about 289,000. In the latest two years of Biden’s term — leaving aside the post-pandemic year of 2021, when jobs recovered strongly from the prior year’s losses — jobs grew by an average 481,000 a year.

One can only speculate about the source of Dimon’s view about MAGA politics. He’s a highly intelligent and accomplished executive; no one without his ability and perspicacity could have remained CEO of the nation’s largest bank company for 18 years and its chairman for 17. Much of what he has had to say over that period has been well worth hearing, especially when it concerns business, economics and finance.

Yet in issuing political proclamations, he sounds like someone out of his lane. It’s hardly unusual for someone so accomplished in one field and so rich to feel the impulse to stray into topics well beyond his field of expertise, especially when his opinions are sought by sycophantic interviewers in public. Who could resist?

That’s also why the cocksure predictions issuing from Davos year after year are so risibly unreliable, the vision of the future so clouded.

In 2022, for instance, the then-president of FTX.US, the cryptocurrency firm’s American unit, told attendees that the firm was in a “very good spot” and had so much capital it would soon be looking for acquisitions. The following year, its founder, Sam Bankman-Fried, was charged with fraud and the firm collapsed. That same year, Davos was certain that a recession in Europe was inevitable; it still hasn’t happened.

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In 2008, no one at Davos noticed that the subprime crisis was erupting and therefore that it would produce a major recession. In 2016, no one at Davos expected Trump to win the election or the U.K. to stage Brexit, its departure from the European Union. The following year, the Davos organizers were so mortified that they actually scheduled a session on why the assembled pundits got so much so wrong.

The fact is that bringing together a host of successful but self-important luminaries to forecast the future is a mug’s game. They’re wrapped up in their own worlds and insulated from what’s happening on the ground.

Nor are they accustomed to being challenged in public. One such uncommon moment occurred during a panel at the 2019 meeting, discussing a proposal by Rep. Alexandria Ocasio-Cortez (D-N.Y.) for a 70% tax rate on income over $10 million.

Panelist Michael Dell, the computer entrepreneur, scoffed. “Name a country where that’s worked, ever,” he said.

Dell’s fellow panelist, economist Erik Brynjolfsson (then of MIT, now of Stanford), jumped right in. “The United States,” he said. “From about the 1930s through about the 1960s. … And those were actually pretty good years for growth. … There’s actually a lot of economics that suggests that it’s not necessarily going to hurt growth.”

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Dell had nothing to say. The panel moderator, Heather Long of the Washington Post, did, however. The top tax rate exceeded 70% only “briefly, in the 1980s,” she said.

Not so. The top tax rate in the U.S., as Brynjolfsson said, exceeded 70% from 1936 until 1982, peaking at 94% in 1944-1945. And those decades encompassed some of America’s most prosperous periods.

But getting something so fundamental so wrong? Over the World Economic Forum’s 53-year history, that’s become a tradition.

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Minnesota Republicans reveal which far-left candidate they want to challenge in open Senate race

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Minnesota Republicans reveal which far-left candidate they want to challenge in open Senate race

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Republican strategists and lawmakers are hoping that when voters head to the polls in November to elect the next U.S. Senator of Minnesota, they’ll be forced to choose between either a Republican candidate — or Minnesota Lt. Gov. Peggy Flanagan.

In a Democratic primary that has yet to play out, House Majority Whip Tom Emmer, R-Minn., believes Flanagan would give Republicans better odds than her opponent, Rep. Angie Craig, D-Minn.

“You’ve got the radical Left that is really upending the party. It’s that crazy Marxist anarchist group that is in Minneapolis, especially with a primary,” Emmer said in an interview with local media.

“Think about this. You’ve got Angie Craig, who will have all the money. But she knows that her numbers are in the tank against this radical, wild, wild-eyed Peggy Flanagan, the current lieutenant governor. So, guess who shows up [to the primary]? All the crazies from Minneapolis.”

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EX-NFL REPORTER LAUNCHES GOP SENATE BID, REVEALS HOW SHE WILL FLIP SCRIPT ON STATE’S ‘CRISIS OF LEADERSHIP”

Minnesota Lt. Gov. and candidate for U.S. Senate Peggy Flanagan, left, pictured alongside her Democratic challenger Rep. Angie Craig, D-Minn., right. (Tom Williams/CQ-Roll Call, Inc via Getty Images; David Berding/Getty Images)

“Peggy Flanagan is likely going to be their candidate, and that is good for us,” Emmer said.

The assessment isn’t unique to Emmer.

The Democratic race began in February of last year when Sen. Tina Smith, D-Minn., sparked a four-way Democratic primary with news that she would not pursue reelection in 2026.

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In addition to Craig and Flanagan, Billy Nord, an anti-establishment activist, and Melisa López Franzen, a former minority leader of the Minnesota Senate, announced bids for the seat. But it didn’t take long for Craig and Flanagan to emerge as the clear-cut frontrunners.

Craig, a former journalist, businesswoman and a current four-term U.S. congresswoman, has $4.8 million in cash on hand, according to FEC records.

Flanagan, Minnesota’s lieutenant governor for the past seven years, has $1.1 million cash on hand.

Nord has not reported contributions with the FEC and López dropped out of the race in May of last year.

DEMOCRAT IN KEY SENATE PRIMARY SAYS SHE ‘REGRETS’ VOTE ON LAKEN RILEY ACT, DRAWS GOP BACKLASH

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ST. PAUL, MN. – NOVEMBER 2018: Minnesota DFL (Democratic-Farmer-Laborer Party) Lieutenant Governor-elect Peggy Flanagan and Governor-elect Tim Walz arrived at their transition offices in the State Capitol Thursday morning, November 8, 2018, in St. Paul, Minn. (Anthony Souffle/Star Tribune)

While Republican onlookers believe both frontrunners can be described as “far-left,” many have pointed out Flanagan shares platform similarities with more polarizing, high-profile Democrats — such as New York Mayor Zohran Mamdani and has shared the same platform as Gov. Tim Walz, who she has called an “incredible partner.” Walz was hammered during his failed 2024 vice presidential bid for all of his far-left proposals.

In the view of the National Republican Senatorial Committee, that makes for a Republican advantage.

“She, too, supports Medicare for All, wants to ‘re-imagine’ policing and attended anti-ICE protests where she called on people to “put their bodies on the line” to defend illegal immigrants from ICE,” the NRSC said in a press release.

More notably, Republicans believe Flanagan’s greatest liability is a tenure that overlaps with recent revelations of up to $9 billion in fraud through government benefit programs.

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Through scores of schemes, fraudsters in Minnesota allegedly siphoned funding from government programs like daycare centers and health clinics while returning no benefits, greatly exaggerating their services and pocketing government funding.

The fraud revelations made national news last year, raising questions about how state leadership could have missed the sheer size of the losses.

DFL party Chair Mike Erlandson told the Minnesota Star Tribune he believes fraud will remain front-and-center in the minds of voters.

“I don’t think there’s any way that this issue isn’t still being talked about in November. And anybody that was a party to it, whether you’re a legislator or Lt. Gov. Flanagan, if she’s the nominee, is going to have to answer questions around it,” Erlandson said.

NRSC Chairman Sen. Tim Scott, R-S.C., echoed that sentiment.

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“From allowing billions of dollars in fraud to vilifying law enforcement, the Walz-Flanagan administration has failed Minnesotans,” Scott wrote in a post to X.

For her own part, Flanagan’s campaign told Fox News Digital she likes her chances to win in a general election, pointing to Minnesota’s solidly-blue track record of sending Democrats to the U.S. Senate.

“Minnesota hasn’t voted for a Republican statewide in over 20 years – with Trump in the White House and the chaos ICE inflicted on Minnesotans, this is not going to be Craig’s or the GOP’s year,” Alexandra Fetissoff, a Flanagan campaign spokeswoman, said.

“Peggy Flanagan is the only candidate in this race who has won statewide, the only candidate not taking corporate money and the only candidate that hasn’t enabled Trump’s ICE. Minnesotans know Peggy and trust her leadership and that’s why she’ll be the next Senator from Minnesota.”

MICHELE TAFOYA SAYS MINNESOTA NEEDS POLITICAL OUTSIDER ‘WITH A SPINE’ IN REPUBLICAN SENATE BID

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ST. PAUL, MN. – JUNE 2022: Minnesota DFL (Democratic-Farmer-Laborer Party) Lieutenant Governor Peggy Flanagan speaks during a press conference Saturday, June 25, 2022 in St. Paul, Minn. U.S. Senators Amy Klobuchar and Tina Smith joined Governor Tim Walz and Lt. Governor Peggy Flanagan at the State Capitol for a Press Conference with Planned Parenthood North Central States CEO and President Sarah Stoesz a day after the U.S. Supreme Court overturned Roe V. Wade. (Aaron Lavinsky/Star Tribune)

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When asked if he stood by his comments on the Minnesota primary, Emmer said he believes Republicans will run a competitive race, regardless of the Democratic nominee.

“Minnesotans will reject both of these far-left, fraud-enabling radicals who would only dig our state into an even deeper hole than it’s already in. Good luck to Flanagan and Craig as they continue fighting tooth and nail to win over the cop hating, open-border extremist base while alienating commonsense Minnesotans,” Emmer said.

Craig and Flanagan will face off in the primary on Aug. 11. Fox News Digital reached out to Craig for comment.

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Contributor: Trump’s empty bluster worked until he took on the pope and Iran

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Contributor: Trump’s empty bluster worked until he took on the pope and Iran

Until recently, President Trump always found a way to fail forward, through a combination of spin, threats, payoffs and bluster.

OK, that’s the simplistic interpretation. The fine print tells a less-glamorous story: a man born on third base who spent decades insisting he’d hit a triple.

Still, it’s hard to argue with success. When Trump entered politics, he redefined the rules of the game. Rivals who tried to outflank him on policy detail, ideological consistency and institutional norms found themselves either vanquished or assimilated by the Borg.

By my lights, only once during Trump’s admittedly chaotic first term did he run into something that his playbook couldn’t at least mitigate or parry: the COVID-19 pandemic. For the final year of his presidency, reality refused to negotiate, and political gravity reasserted itself. It turns out, viruses aren’t susceptible to the Art of The Deal.

But then, miraculously, Trump wriggled through legal jeopardy, bulldozed his way past more conventional Republicans and Democrats, and re-emerged victorious in 2024.

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If anything, that comeback reinforced the idea that Trump could survive anything by virtue of his playbook.

By the start of his second term, he’d made impressive headway in co-opting not only individuals but also major institutions within big tech, the media and academia.

Even in foreign affairs, Trump’s sense that any problem could be solved via force, intimidation or money was confirmed when he captured Venezuelan President Nicolás Maduro and installed Maduro’s vice president, Delcy Rodríguez, as a sort of puppet leader. Everyone has a price, right?

Unfortunately for Trump, no. Not everyone does.

Lately, the president has encountered a different kind of resistance — adversaries motivated by something bigger and more transcendent than money, power or the avoidance of pain.

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In dealing with Iran, for instance, Trump has confronted people operating under a wholly different set of incentives. It’s a regime guided by a mix of ideology, radical religious doctrine and long-term strategic interests that don’t always align with short-term material gain.

(Now perhaps, having punished Trump enough already, Iran will finally come to the negotiating table. But even if that happens, it will have occurred after exacting a steep price — so steep, in fact, that it may already be too late for Trump to plausibly claim a win.)

It turns out, you can’t easily intimidate or pay off a true believer who isn’t afraid to die and believes they have God on their side.

A similar (though obviously not morally equivalent) dynamic is now also on display in the form of Trump’s skirmish with Pope Leo XIV, a man who commands moral authority. He opposes the war in Iran (“Blessed are the peacemakers”) and has demonstrated a stubborn refusal to back down to Trump’s attempts at bullying.

“Woe to those who manipulate religion and the very name of God for their own military, economic and political gain, dragging that which is sacred into darkness and filth,” Leo said during a tour of Africa. It’s a remark that the American pope seemed to implicitly be aiming at the American president.

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Here’s what Trump doesn’t understand: There are still pockets of the world where concepts like faith and national identity outweigh tangible incentives. Where sacrifice and suffering are an accepted part of the plan.

When facing these sorts of foes, Trump’s usual operating system starts to look less like a cheat code and more like a category error.

But he can’t see this because Trump is always prone to a sort of cynical projection — of assuming everyone views the world in the same base, carnal, corrupt way he sees it.

Whether it was his incredulity that Denmark wouldn’t sell Greenland, rhetoric that seemed to discount the motivations of those who serve and sacrifice in the military, or his affinity for nakedly transactional gulf states, the pattern is familiar: a tendency to view decisions through a cost-benefit lens that not everyone shares.

To be fair, that lens has often served him well. In arenas where power, money and leverage dominate, Trump’s approach is eerily effective.

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But after years of taming secular, “rational” opponents, he is fighting a two-front war against people who see their struggles as moral and spiritual.

They aren’t stronger in a conventional sense. But they are, in a very real sense, less susceptible to Trump’s methods.

For perhaps the first time in his life, Donald Trump finds himself facing adversaries who aren’t just immune to his usual Trumpian playbook but are playing a different game altogether.

Matt K. Lewis is the author of “Filthy Rich Politicians” and “Too Dumb to Fail.”

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Video: Democrats Confront RFK Jr. on Vaccines and Health Care Fraud

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Video: Democrats Confront RFK Jr. on Vaccines and Health Care Fraud

new video loaded: Democrats Confront RFK Jr. on Vaccines and Health Care Fraud

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Democrats Confront RFK Jr. on Vaccines and Health Care Fraud

Lawmakers confronted Robert F. Kennedy Jr. on vaccine messaging and the Trump administration’s handling of health care fraud. The health secretary was also criticized over comments he made about psychiatric medications and Black children, which he denied.

“A deadly measles outbreak in Texas killed an unvaccinated 6-year-old, the first such death in a decade. Do you agree with the majority of doctors that the measles vaccine could have saved that child’s life in Texas?” “It’s possible, certainly.” “President Trump approved your decision to end the C.D.C.’S pro-vaccine public messaging campaign?” “We’ve done better at preventing —” “That’s not answering my question. You suspended this pro-vaccine messaging campaign, but somehow you’re spending taxpayer dollars to drink milk shirtless in a hot tub with Kid Rock.” “Our nation has a long and painful history of separating Black children from their families. During slavery, Black children were taken from their parents and sold with no regard for their humanity. When you suggested re-parenting Black children, when you sow doubt about the safety of vaccines and when you promote unproven statements that have no basis in science, you endanger the lives of everyone across this nation.” “If we’re going to pursue fraudsters, it’s not just the people who might make simple, honest mistakes that could be corrected. It’s the people at the top that help to perpetuate this fraud. And the administration’s position seems to be that it’s only the recipients and not the providers that commit fraud. We want an even-handed approach to these fraud investigations, including those whose schemes have cost the American taxpayers hundreds of millions of dollars.”

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Lawmakers confronted Robert F. Kennedy Jr. on vaccine messaging and the Trump administration’s handling of health care fraud. The health secretary was also criticized over comments he made about psychiatric medications and Black children, which he denied.

By Jorge Mitssunaga

April 16, 2026

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