Though I haven’t written much on neoliberalism lately, I still dip into the literature now and again. The next book in my queue, Robert McDonald’s Works Like a Charm: Incentive Rhetoric and the Economization of Everyday Life, has put me in mind of the classic neoliberal notion of the “nudge” and how it might help us think through the vexed question of Trump’s relation to neoliberalism. (This post does not directly reflect McDonald’s specific view, though, because I am not planning to start it until my train ride tomorrow — but in the true spirit of blogging, I decided to write at the moment I had the time, the idea, and the motivation rather than waiting.)

In the “Trump chapter” of Neoliberalism’s Demons, I claim that Trump is a heretical neoliberal in the proper theological sense — someone who radicalizes the premises of neoliberalism in order to purify it. Trump doubtless violates many specific neoliberal policy preferences (e.g., free trade, trust in abstract expertise and competence), but when it comes to what I identify as the moral core of neoliberalism, he is a true believer. He really sees the world as a field of zero-sum competitions whose results don’t just sort people into winners and losers, but do so in a way that reveals their true worthiness as people. His critique of actual-existing neoliberalism is that the “wrong” people and countries are winning.

Hence Trump concludes that the system must be rigged against the “right” people and countries and sets about righting that supposed wrong to make sure that the “right” people and countries start winning again. Obviously his framework for determining the “right” people and countries is deeply racist and xenophobic, but I think it’s important to highlight that he’s taking a specifically neoliberal approach to racism and xenophobia — the damage that the racial and foreign Others are doing is economic and calls for a shift in economic policy. The economy is still in principle the site for legitimation of individuals and groups, but in his view it hasn’t been allowed to operate properly. Once he “fixes” it, white people will once again be in charge of everything (instead of merely most things) and America will once again dominate the world (instead of being merely the unipolar hegemon).

Trump is pursuing this agenda even more radically in his second term. What’s striking to me, however, is how thoroughly neoliberal his tools are. So far, everything is structured as a big, dumb “nudge.” To start with the least heretical policy: he doesn’t like the trade balance with other countries, and so he threatens them economically with tariffs. Traditional neoliberals would prefer that tariffs be kept at a minimum, but there is room for protective or punitive tariffs if they aren’t following the rules of the free market, as Trump believes other countries are not. More radical, though, is his attempt to weaponize economic tools to achieve seemingly unrelated policy goals, like using tariffs in his negotiations with Colombia over deportations (apparently unsuccessfully, or at least not as successfully as Trump believes) or his threats to impose punitive tariffs on Denmark if they do not cede Greenland to him. And on the domestic side, he doesn’t like anything “woke” or DEI, so he tries to take away all their money — most dramatically through the attempted freeze on federal grants and loans, but also with the more routine threats to withold federal funding from sanctuary cities, school districts that acknowledge trans people exist, and other supposed malefactors.

In both cases, Trump also holds in reserve the punitive arm of the state — refusing to rule out a military conquest of Greenland (surely a mighty feat that will live on in song and legend) or the deployment of troops in his deportation scheme. That, too, broadly fits with the neoliberal paradigm, which tends to delegitimate any direct role for the state other than the police and military. But it is fascinating that these hamfisted economic “nudges” are what he reaches for first and most often. From the classic neoliberal perspective, the actions are much too “in your face” and forceful, rather than the seamless, almost unconscious manipulation that “nudges” were supposed to achieve. Hence we could call them “shoves” rather than “nudges.” But both are still economic in nature, and thus in continuity with a worldview in which economic incentives are the only legible motivations.

More than that, Trump conceives of the policy priorities that are not directly economic from a common sense perspective as profoundly economic. They are part of his agenda to “fix” the economic order so it starts delivering the “correct” results again. And once we see that, even some of his crazier policy preferences start to make a perverse kind of sense. The best example here is his fantasy that tariffs can somehow replace the income tax as the primary funding source for the federal government. This goal is for all intents and purposes impossible to achieve and the pursuit of it would cause untold suffering and disruption. But what makes him think it must be possible is that it is morally necessary — it would be a form of reparations from the whole world, for all the economic damage they have done to America with the many unfair deals they have imposed upon us. The same logic worked on a smaller scale with the fantasy that Mexico would pay for the wall. By supposedly “sending” so many immigrants to steal American jobs, Mexico had done profound economic harm to America, so it’s only fair that they should foot the bill for the solution.

Trump’s mutation of neoliberalism is of course delusional and simplistic — but it is, in its own way, deeply coherent. In fact, it is too coherent, which leaves it with no room to process the unexpected or even the unknown. The fact that all the people who actually know anything objectively true at all are in on the anti-American DEI conspiracy is obviously a huge weakness, and it leaves those of us on the outside of the Trump bubble with very little leverage to persuade them to change course. Yet I cannot help but notice that the reciprocal shove of everyone in the country simultaneously shouting at them that, no, they can’t arbitrarily shut down the entire federal government because some of duly legislated programs might be too “woke” did prove effective. We can also expect reality itself to shove them back if they really do attempt to replace the income tax with tariffs, because they will very quickly realize that they don’t have any money to pay all the guys with the guns.

This is obviously very far from the ideal of deliberative democracy, but it makes sense that a neoliberal heretic would not be invested in an ideal to which the orthodox believers gave half-hearted lip service at best.