Wednesday, December 14, 2016

The Solution is Dissolution

Big Fish Eat Little Fish (Bruegel)
Trump was never much good as a corporate raider. His short-term attempt to take over Bally resulted in a resale of his shares at a profit (AKA greenmailing), and his takeover of the Eastern Airlines shuttle netted him little and may have landed him in bankruptcy a short time later.

He's back with a vengeance now, though. Trump's hostile takeover of the Republican Party has succeeded beyond his wildest dreams, and he's set now to infiltrate all of his least favorite cabinet offices and liquidate them from within.

His role model is Carl Icahn, a public supporter who backed Trump expressly in hopes of his eliminating regulatory agencies, which are the bane of the corporate raider's existence. In case you think cabinets in the federal government are too big to fail, consider Icahn's prior success with TWA or T. Boone Pickens's destruction of Gulf Oil.

I don't doubt that the federal government is overstaffed and less efficient than it should be. But if you dump all those folks in the Departments of Education (a mere 4,500) and Energy (around 110,000) and Commerce (around 44,000) and Veterans Affairs (around 235,000) onto the job market, what do you suppose that will do to your unemployment figures?

Of the federal employees in executive departments, 3/4 work for the Department of Defense. I suspect that their labs are already working on a poison pill to prevent any kind of raid there.

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