Crash Lessons

"Those who do not learn from history are condemned to repeat it." -- George Santayana

"What's good for General Motors is good for the country." -- Charles Wilson, corporate executive and Secretary of Defense, 1953-1957.

   Wall Street has been celebrating the prospect of a Trump presidency, with the news that several of the financial district's biggest names are to have prominent places in the new Republican administration.
   Meanwhile, the outgoing Democratic administration of President Barack Obama is leaving a recovering economy. Usually, it's the other way around, as incoming politicians blame their predecessors for economic disaster and promise that they will do better.
   Let's remember 1929, when the incoming President proclaimed that "the business of America is business," and soon ushered in the Great Depression.
   Let's remember the Reagan years, which started off well but ended with increased national debt and deficits.
   Let's remember the Bush II years, when the administration inherited a balanced budget and reduced debt, but left a major deficit and increased debt as the economy fell into the Great Recession.
   Now let's look at the current economy, which is heading for good health. How long will it be before the incoming President, Donald Trump, and his Wall Street buddies put in place their version of what's good for America and the nation reacts?
   If history is any guide, and it often is in politics, and the Federal Reserve Board taps the economic brakes later this month, the combination of a business-friendly government and higher interest rates could well send the national economy into a tailspin and a crash.
   See a pattern yet? Republicans dominate Washington and the economy slides. Democrats take over and the national engine is back on the road. Then the GOP gets back in the driver's seat and the economy stumbles again.
   Here's a guess: Within six months, we'll see problems.