Political:Heather Cox Richardson, Dec.17,Pt 1 (Trump first press conference)

Heather Cox Richardson is a political historian who uses facts and history to put the news in context.

Yesterday, Trump gave his first press conference since the election. It was exactly what Trump’s public performances always are: attention-grabbing threats alongside lies and very little apparent understanding of actual issues. His mix of outrageous and threatening is central to his politics, though: it keeps him central to the media, even though, as Josh Marshall pointed out in Talking Points Memo on December 13, he often claims a right to do something he knows very little about and has no power to accomplish. The uncertainty he creates is key to his power, Marshall notes. It keeps everyone off balance and focused on him in anticipation of trouble to come.

At the same time, it seems increasingly clear that the wealthy leaders who backed Trump’s reelection are not terribly concerned about his threats: they seem to see him as a figurehead rather than a policy leader. They are counting on him to deliver more tax cuts and deregulation but apparently are dismissing his campaign vows to raise tariffs and deport immigrants as mere rhetoric.

As the promised tax cuts are already under discussion, interested parties are turning to deregulation. Susanne Rust and Ian James of the Los Angeles Times reported on Sunday that on December 5, more than a hundred industrial trade groups signed a 21-page letter to Trump complaining that “regulations are strangling our economy.” They urged him to gut Biden-era regulations and instead to “partner” with manufacturers to create “workable regulations that achieve important policy goals without imposing overly burdensome and impractical requirements on our sector.”

They single out reductions in air quality, water quality, chemical, vehicle, and power plant environmental regulations as important for their industries. They also call for ending the “regulatory overreach” of the Biden administration on labor rules, saying those rules “threaten the employer-employee relationship and harm manufacturers’ global competitiveness.” They want an end to “right-to-repair” laws, a loosening of the rules for how and when companies need to report cyber incidents, and the replacement of mandated consumer product safety rules with “voluntary standards.”

They also call for cuts to the Biden administration’s antitrust efforts and for looser corporate finance regulations. On December 12, Gina Heeb reported in the Wall Street Journal that Trump’s advisors are exploring ways “to dramatically shrink, consolidate or even eliminate the top bank watchdogs in Washington,” including the Consumer Financial Protection Bureau and the Federal Deposit Insurance Corporation (FDIC).

As Catherine Rampell explained in the Washington Post today, Congress created the FDIC in 1933 to protect bank deposits so that a bank’s customers can trust that mismanaged banks won’t lose their money. The FDIC also oversees those banks so that they are less likely to get into trouble in the first place. Congress created the system after people rushing to get their money out before a collapse actually created the very collapse that they feared, with one bank failure creating another in a domino effect that dug the economy even further into the crisis it was in after the Great Crash.

But the insurance money for those banks comes from fees assessed on the banks themselves, so abolishing the FDIC would save the banks money.

When he learned that Trump’s advisors are eyeing cuts to the FDIC, Princeton history professor Kevin Kruse commented: “When I lecture about New Deal banking reforms, I note that some of the key measures—like Glass Steagall—were repealed by the right with disastrous results like the 2008 financial meltdown, but ha ha, no one will ever be stupid enough to kill FDIC and bring back the old bank runs.”

Ben Guggenheim of Politico was the first to report that twenty-nine Republican members of Congress are also quick off the blocks in getting into the act of promoting private industry, calling for the incoming president to end the program of the Internal Revenue Service that lets people file their taxes directly without using a private tax preparer. Other developed countries use a similar public system, but in the U.S., private tax preparers staunchly opposed the public system. When more than 140,000 people used the IRS pilot program this year, they saved an estimated $6.5 million. Republicans called for its end, warning it is “a threat to taxpayers’ freedom from government overreach.”