Rory McLaughlin ‘24
Guest Writer
Donald Trump’s disdain for NATO is no secret. As far back as 1987, he’s gone on record giving speeches lambasting NATO allies for “ripping us off” for not contributing as much of their GDP towards defense as us. On several occasions, he has expressed such frustration with the 75 year-old alliance that many former advisors fear he would pull out if given a second term. Indeed, Trump himself threatened to pull the US out at a 2018 summit if allies did not increase their spending on defense.
However, Trump’s business-wired brain demonstrates a lack of understanding of how the alliance operates: our place on the global stage has been precisely because we’ve led the charge on defense, and it has benefited American interests in all facets of society: economic growth, democratic values, and national defense. It’s the reason why NATO has been the most successful, largest, longest-lasting military alliance in modern history.
Trump’s threats to not send US assistance should Article 5 be invoked, the article which states that an attack on one NATO member is an attack on all, demonstrates his short memory: the only time the article has ever been invoked was when the US was attacked on 9/11, right down the road from Trump Tower. While asking our NATO allies to increase their contributions is valid, particularly those who aren’t meeting the 2% of GDP target, this target is not rent, as the former real-estate tycoon would like it to be: our allies are not evictable for being short of the target. If that were the case, the entire institution would be undermined, and Vladimir Putin would almost certainly continue his campaign of Soviet restoration into the Baltic states and beyond– throwing our carefully constructed world order of liberal democracy completely out the window.
It is no coincidence that as this order has dominated over the last 75 years, the US economy has developed into the strongest in world history: national security and economic security are inextricably linked. A huge reason for why the US Dollar has been the dominant global currency is because of the credibility that the Fed has established for being the “world’s bank.” The Fed has always exhibited a strong degree of political independence, reacting with monetary policy decisions purely based upon economic realities– regardless of how said moves may impact the current administration politically. Take the Chairmanship of Paul Volcker: Nominated by Jimmy Carter during the “stagflation” period of the late ‘70s, Volcker took a notoriously aggressive approach to ringing inflation out of the economy, raising interest rates as high as 20%. This ground the economy to a halt, a tough but necessary therapy to curb high inflation. The ensuing economic freeze hurt Carter politically, and may have cost him a second term– but Volcker’s medicine worked, and inflation sunk to normal levels within 3 years.
Trump, however, has no such plans to honor Fed independence: Instead, he’s openly lambasted the Fed for not lowering interest rates to boost short-term economic growth so that he can take political credit. WSJ reported last week that Trump officials have already begun drawing up plans for the President to be consulted about every monetary policy decision in a second term– a move that would risk politicizing the central bank and undermining all credibility for dollar dependence (go ahead and ask Argentina what happens when the central bank becomes politicized).
Trump’s wishes for a world order run like one of his businesses would undermine everything we have worked for since WWII. Besides, if the world order ran like a Trump business, it’d go bankrupt anyway.
Featured Image Courtesy of CNBC

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