Tag Archives: rule of law

Economics And The Rule Of Law

One of the multiple failures of the not-very-bright people who are currently running/ruining our government is their inability to connect the dots, to understand that when they set out to undermine X, the consequences of that assault aren’t just limited to X. We live in a complex and interrelated world, and failure to understand those complexities can lead to unanticipated damage.

The Trump administration consistently displays enormous ignorance of the way the world actually works. That ignorance–that disdain for pesky things like expertise and evidence–is particularly evident in Trump’s approach to economic policy. It isn’t just his insane belief in tariffs (a belief shared by no economist, conservative or liberal). It isn’t just his echoing of longstanding Republican insistence that tax cuts for “job creators” will grow the economy–despite ample evidence to the contrary. (Of course, even if those tax cuts don’t lead to economic growth, they do lead to the growth of generous political contributions…)

It isn’t even the GOP’s failure to understand the dire economic and civic consequences of further impoverishing citizens who are already struggling in order to fatten the wallets of the already wealthy, a failure once again demonstrated by Trump’s “Big Beautiful Bill.”

The most dangerous failure to connect the dots is the less-noted but even more consequential failure to understand the economic importance of the rule of law, or to recognize how Trump’s assaults on the law will dramatically and inevitably undermine the nation’s economy.

I’ve previously explained why widespread obedience to the rule of law is an essential underpinning of liberty and civic equality–why it is at the very basis of what I call “the American Idea.” But it is equally important to understand why the nation’s economic health is absolutely dependent upon a government that respects the rule of law.

Trump’s autocratic attacks on–and utter disregard for– the rule of law are a direct threat to the willingness of foreign investors to buy and hold American  stocks and bonds. When those investors see Trump and his administration unilaterally defaulting on contracts, arbitrarily withholding funds that have been properly and legally appropriated, ignoring court decisions and attacking judges, deporting people without even the pretense of due process–while at the same time providing special treatment for donors, favored companies, and White immigrants– those investors re-think the safety of their investments.

Why should we care?

Among other things, foreign investors inject capital for increased production and economic expansion. They create new employment opportunities and facilitate technology transfer. Foreign investors often bring in advanced technologies and expertise, fostering innovation and boosting productivity in local industries. When foreign businesses generate profits, they contribute to U.S. tax revenues, providing American government with resources to fund public services.

That investment is at risk. As one economist put it,

The erosion of the rule of law under Trump can have enormous economic significance for a foreign government, investor, or company with stakes in our economy. They now know that the U.S. government may ignore its contracts with them or decide not to enforce their agreements with others when it serves the political or personal interests of the president. That’s the way the world works in the kleptocratic dictatorships in Russia and Venezuela, and virtually no one invests in their stocks and bonds.

By following their lead, Trump and his apprentices risk devastating capital flight that could leave many of our leading financial institutions insolvent. In addition to his deeply destructive tariffs, Trump’s sweeping campaign against the rule of law in the United States has raised the economic stakes from a rocky business cycle to a potential financial and economic meltdown with terrible consequences.

America’s respect for the rule of law is the reason foreign investors have felt safe parking their money here, and all Americans have benefitted from our role as a safe place in the global economy.

Anyone who has taken Economics 101 understands that the rule of law is fundamental to business and investment. It creates the predictable, stable, and fair environment that economic activity depends upon. Without predictability and stability,
businesses and investors are unable to make long-term plans and commitments. Unless laws governing commerce are clear and consistently enforced– and not subject to arbitrary changes– companies can’t assess risks and returns.

You would think the Republicans who fancy themselves protectors of private property and capital would understand that it is the rule of law that protects that private property from seizure or infringement, and that investors–foreign or domestic– are highly unlikely to put money into an economy where assets can be seized or destroyed without due process.

When the GOP was a party, and not a cult, it understood that.

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The “Naughty” List

Santa Claus isn’t the only one who is keeping a list of “who is naughty and who is nice.” Charlie Sykes recently brought some limited order out of the chaos of Trump’s first months–a real service, since most of us have been beaten down by the daily firehose of assaults on decency, the Constitution and the rule of law–the tactic Steve Bannon has called “flooding the zone with shit.”

Sykes assembled his list in order to criticize Chuck Schumer, who has finally graduated from sending “stern letters” and moved to block Trump appointees. Sykes asks “What took you so long? Why didn’t you act when”…and then he provides his list of Trumpian assaults that should have prompted active blowback when they occurred.

Granted, Sykes’ list isn’t comprehensive, so intensely has the zone been flooded, but here are the acts that he says should have triggered action from Schumer when they occurred:

  •  blanket pardons for Jan. 6 rioters, including those who assaulted police officers.
  • his purge of the FBI, targeting agents who had investigated his own misconduct.
  • suspending enforcement of the foreign bribery ban.
  • calling for the impeachment of a federal judge who ruled against him.
  • firing the head of the Office of Special Counsel who protects whistleblowers.
  • firing the head of the Office of Government Ethics.
  • firing the prosecutors who worked on Capitol riot investigations.
  • slashing the office that prosecutes misconduct by public officials.
  • dropping charges against New York City Mayor Eric Adams in return for Adams agreement to work with ICE — a move that led to the resignation of the acting SDNY U.S. attorney and several other federal prosecutors.
  • Trump’s refusal to bring Kilmar Abrego Garcia back to the U.S. — stating that he could, but wasn’t going to.
  • Trump’s suggestion to the president of El Salvador that he would send “homegrown” criminals — American citizens — to his notorious prison.
  •  Trump’s executive orders targeting individuals who had criticized him — including Chris Krebs, who had challenged his 2020 election lies.
  • stripping the security clearances of law firms who had challenged him. 
  • Trump’s threats to strip licenses from media critics.
  • allowing Elon Musk’s team to access sensitive and protected taxpayer information.
  • when his top aides were caught chatting about military action on Signal.
  • firing six National Security Council officials on advice from far-right conspiracy theorist Laura Loomer.
  • refusing to rule out the use of military force to seize Greenland. 
  • Trump’s purge of top generals, including the chairman of the Joint Chiefs.
  • sending masked agents to seize people on the streets.
  • arresting international students for little more than for writing op-eds.
  • when White House aide Stephen Miller said that administration was considering suspending habeas corpus.

Sykes list–which I would emphasize is far from comprehensive–was generated as Americans learned of Qatar’s offer of a “gift”–a plane described as a “palace in the sky.”  The offer was, as Sykes says, “a very visible symbol of Trump’s susceptibility to corruption.” But–as he also reminds us– we have seen countless other examples.

Sen. Chris Murphy, for example, has been banging the drum about Trump’s potential $TRUMP crypto conflict of interest for months. “My hair has been on fire about the meme coin from day one,” Murphy told The Washington Post. “That is a level of corruption that is just absolutely stunning. It was already the most corrupt thing a president has ever done in the history of the United States.”

What didn’t make Syke’s list is the Trump administration’s effort to neuter the other two branches of government.

Under the Constitution, Congress and the courts are “co-equal” with the Executive branch, but Trump and MAGA have bullied the Republicans in Congress into submission. (Given that the GOP is currently in the majority, Democrats have been left with limited options for resistance–a good reason to put those options to maximum use.)

Unlike Congress, the courts–at least, the lower federal courts–have fulfilled their Constitutional role. They have ruled for the plaintiffs in virtually every case challenging Trump’s illegal and unconstitutional actions–but while Trump has given lip service to obeying those rulings, he continues to ignore a number of them. At the same time, he has increased his threats against judges who dare to rule against him, and MAGA thugs (Trump’s “brownshirts”) have taken to issuing threats against the judiciary and their families.

We the People need to leave a large civic lump of coal in the Trump stocking. Sooner rather than later.

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Ends And Means

In governance, there are two basic questions: What and How. Our current political polarization is between the MAGA/Project 2025 ideologues who are focused on the “what,” and those of us who are intent upon protecting a Constitutional order prescribing “how.”

If there is one clear distinction between western constitutional systems, including ours, and the various dictatorships and theocracies around the globe, it is the formers’ emphasis on process. Indeed, we might justifiably characterize our Bill of Rights as a restatement of your mother’s admonition that how you do something is just as important as what you choose to do. Sometimes, more so.

The ends do not justify the means is an absolutely fundamental American precept.

This emphasis on process–the means– is widely acknowledged by political scientists. Whatever their other debates, there is a shared recognition that the American approach to legitimate governance is procedural.  We are a nation of laws that are meant to govern how we go about ordering our common lives.

Some twenty-plus years ago, Rick Perlstein made a point about the political parties that has only gotten more apt.

We Americans love to cite the “political spectrum” as the best way to classify ideologies. The metaphor is incorrect: it implies symmetry. But left and right today are not opposites. They are different species. It has to do with core principles. To put it abstractly, the right always has in mind a prescriptive vision of its ideal future world—a normative vision. Unlike the left (at least since Karl Marx neglected to include an actual description of the “dictatorship of the proletariat” within the 2,500 pages of Das Kapital), conservatives have always known what the world would look like after their revolution: hearth, home, church, a businessman’s republic. The dominant strain of the American left, on the other hand, certainly since the decline of the socialist left, fetishizes fairness, openness, and diversity. (Liberals have no problem with home, hearth, and church in themselves; they just see them as one viable life-style option among many.) If the stakes for liberals are fair procedures, the stakes for conservatives are last things: either humanity trends toward Grace, or it hurtles toward Armageddon…

For liberals, generally speaking, honoring procedures—the means—is at the very core of being “principled,” of acting with legitimacy. For conservatives, fighting for the desired outcomes—the ends—and, if necessary, at the expense of procedural niceties, is the definition of “principled.”

In a constitutional democracy, the franchise is first among the means. Democrats generally understand our system to be one in which citizens demonstrate their preference for “ends”–for policies–at the ballot box; accordingly, they believe that the more extensive the turnout, the more legitimate the ensuing legislative mandate.

Republicans–focused on ends–disagree. As the late New Right founding father Paul Weyrich once put it, “I don’t want everybody to vote. Elections are not won by a majority of the people. They never have been from the beginning of our country and they are not now. As a matter of fact, our leverage in the elections quite candidly goes up as the voting populace goes down.” 

Over the years, that difference between ends and means has become institutionalized within the two political parties. In states with Republican Attorneys general or Secretaries of State, like Indiana, those officials work to squeeze as many minority voters from the rolls as possible.  Republican state legislatures gerrymander to the greatest extent possible,  disenfranchising thousands of urban and liberal voters. (And yes, Democrats gerrymander too, but demonstrably much less.)

These moves strike Americans who were raised with the admonition that “it isn’t whether you win or lose, but how you play the game” as “dirty pool.” But they make all kinds of sense to people who believe they are trying to save civilization from hurtling toward an Armageddon where “those people” will replace the good White Christian men that God wants in charge.

Those True Believers represent a very significant element of the MAGA base. They don’t necessarily include the party overlords, but those pooh-bas recognize that their hold on power depends upon playing to the base’s beliefs. Today’s Republican officeholders agree with Machiavelli, who said “We ought to see clearly that the end does justify the means…If the method I am using to accomplishes the goal I am aiming at, it is for that reason a good method.”

The Trump administration–with its attacks on due process, habeas corpus and the rule of law itself– is making the difference impossible to ignore.

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Three Cheers For The Indiana Bar!

It’s easy to be critical of Indiana, and especially of the collection of ideologues, MAGA wanna-bes and invertebrates who dominate our state legislature, so it is especially gratifying when an Indiana organization speaks up for democratic governance and the rule of law.

That organization–hopefully, one among many to come–is the Indiana Bar, the organization that represents the legal profession in Indiana. A few days ago, the president of the Bar association released the following statement. In normal times, this statement would be anodyne–a “this is who we are” reminder to citizens who may not appreciate the role of law and lawyers in maintaining stability and civic fairness. But in the Age of Trump and MAGA, it is a heartfelt and incredibly important reaffirmation of the importance of the rule of law and the determination of lawyers to protect it.

Here is that letter.

Each year on May 1, Law Day offers a moment to reflect on the foundational principles that shape our democracy. Chief among them is the Rule of Law, a concept that not only guides our profession but ensures a just and orderly society.

But what exactly is the Rule of Law? And why does it matter?

At its core, the Rule of Law means that no one is above the law and that laws are applied fairly and consistently. It guarantees that our rights and liberties are protected through transparent legal processes. The Rule of Law empowers a parent to challenge a school policy, enables a small business owner to enforce a contract, and protects a citizen who questions government actions. It ensures that power is exercised within bounds, and that all individuals are held accountable under the same legal standards.

The Rule of Law also depends on an impartial and independent judiciary. It is enshrined in both our U.S. and Indiana Constitutions and has long served as a safeguard against tyranny and injustice. Further, under our system of justice, everyone has a right to representation. Lawyers must be free to represent clients without fear of retribution, and clients must be free to choose their counsel without worry of sanction. Our country’s founders, having lived through systems of unchecked authority, built our country rooted in the idea that the rule of law must govern.

Speaking during the first National Law Day in 1958, President Dwight D. Eisenhower said: “The clearest way to show what the Rule of Law means to us in everyday life is to be reminded of what happens when there is no Rule of Law.” He saw this firsthand during World War II while battling Nazi Germany and Imperial Japan. His words remain relevant as we consider the global and domestic challenges that test the strength of our institutions today.

Respect for the Rule of Law is not a given; it must be valued and actively upheld by each generation. One of the greatest threats today is a growing misunderstanding of the Rule of Law. We see its benefits in every trial and every instance of due process. As legal professionals, we have a duty not only to follow the law, but to promote it. That means defending judicial independence, the ability of attorneys to zealously represent clients, and protecting the right of all people to be heard.

President Ronald Reagan put it succinctly: “True peace rests on the pillars of individual freedom, human rights, national self-determination, and respect for the Rule of Law.”

President John F. Kennedy likewise offered this reminder: “Only a respect for the law makes it possible for free people to dwell together in peace and progress… Certain other countries may respect the rule of force. We respect the Rule of Law.”

These ideals are not partisan. They are foundational.

The Indiana State Bar Association stands firm in this commitment. We believe that the Rule of Law is more than a professional ideal, it is the bedrock of our civic life. And we call on every Hoosier attorney, judge, legal professional, and citizen to join us in protecting and promoting it. If the Rule of Law suffers, we all suffer. If the Rule of Law is threatened, we are all threatened. By deeply understanding its significance, honoring its principles, and vigorously defending it, we ensure that the Rule of Law, America’s foundation, endures undiminished.

Let this Law Day be not only a commemoration, but a recommitment.

Michael Jasaitis

ISBA President

Kudos to the Indiana Bar Association!!

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Telling It Like It Is

Jay Pritzker, the Democratic governor of Illinois recently made a speech in New Hampshire that has received significant–and merited–attention. Pritzker really “told it like it is.”

Heather Cox Richardson recently quoted from Pritzker’s speech at length, and today, I am going to do the same, because Pritzker’s words deserve widespread distribution.

“It’s wrong to snatch a person off the street and ship them to a foreign gulag with no chance to defend themselves in a court of law.” This is not about immigration, he said, but about the Constitution. “Standing for the idea that the government doesn’t have the right to kidnap you without due process is arguably the MOST EFFECTIVE CAMPAIGN SLOGAN IN HISTORY,” he said. “Today, it’s an immigrant with a tattoo. Tomorrow, it’s a citizen whose Facebook post annoys Trump.”

Pritzker called for “real, sensible immigration reform.”

“Immigration—with all its struggles and its complexities—is part of the secret sauce that makes America great, always. Immigrants strengthen our communities, enrich our neighborhoods, renew our passion for America’s greatness, enliven our music and our culture, enhance understanding of the world. The success of our economy depends upon immigrants. In fact, forty-six percent…of Fortune 500 companies were founded by immigrants or the children of immigrants.”

Trump’s attacks on immigrants, he said, are likely to make the U.S. economy fail. Indeed, he suggested, making America fail is the point of the Trump administration’s actions.

“We have a Secretary of Education who hates teachers and schools. We have a Secretary of Transportation who hates public transit. We have an Attorney General who hates the Constitution. We have a Secretary of State, the son of naturalized citizens—a family of refugees—on a crusade to expel our country of both.

“We have a head of the Department of Government Efficiency— an immigrant granted the privilege of living and working here, a man who has made hundreds of billions of dollars after the government rescued his business for him—who is looking to destroy the American middle class to fund tax cuts for himself. And we have a President who claims to love America but who hates our military so much that he calls them ‘losers’ and ‘suckers’ and who can’t be bothered to delay his golf game to greet the bodies of four fallen US soldiers. And we have a Grand Old Party, founded by one of our nation’s bravest Presidents, Abraham Lincoln—who today would be a Democrat, I might add—… so afraid of the felon and the fraud that they put in the White House that they would sooner watch him destroy our country than lift a hand to save it.”

 “It’s time to stop wondering if you can trust the nuclear codes to people who don’t know how to organize a group chat. It’s time to stop ignoring the hypocrisy in wearing a big gold cross while announcing the defunding of children’s cancer research. And time to stop thinking we can reason or negotiate with a madman. Time to stop apologizing when we were NOT wrong. Time to stop surrendering, when we need to fight.

“Our small businesses don’t deserve to be bankrupted by unsustainable tariffs. Our retirees don’t deserve to be left destitute by a Social Security Administration decimated by Elon Musk. Our citizens don’t deserve to lose healthcare coverage because Republicans want to hand a tax cut to billionaires. Our federal workers don’t deserve to have, well, a 19-year-old DOGE bro called Big Balls destroy their careers.

“Autistic kids and adults who are loving contributors to our society don’t deserve to be stigmatized by a weird nepo baby who once stashed a dead bear in the backseat of his car.

“Our military servicemembers don’t deserve to be told by a washed up Fox TV commentator, who drank too much and committed sexual assault before being appointed Secretary of Defense, that they can’t serve this country simply because they’re Black or gay or a woman.

“And If it sounds like I’m becoming contemptuous of Donald Trump and the people that he has elevated, it’s because… I am. You should be too. They are an affront to every value this country was founded upon.”

“I understand the tendency to give in to despair right now. But despair is an indulgence that we cannot afford in the times upon which history turns. Never before in my life have I called for mass protests, for mobilization, for disruption. But I am now.

“These Republicans cannot know a moment of peace. They have to understand that we will fight their cruelty with every megaphone and microphone that we have. We must castigate them on the soap box, and then punish them at the ballot box. They must feel in their bones that when we survive this shameful episode of American history with our democracy intact—because we have no alternative but to do just that—that we will relegate their portraits to the museum halls reserved for tyrants and traitors.”

“Cowardice can be contagious. But so too can courage…. Just as the hope that we hold onto in the darkness, shines with its own…special light.

“Tonight, I’m telling you what I’m willing to do…is fight—for our democracy, for our liberty, for the opportunity for all our people to live lives that are meaningful and free. And I see around me tonight a roomful of people who are ready to do the same.”

“So I have one question for all of you. Are you ready for the fight?”

To which I say “yes.” And “amen.”

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