One of the most important lessons I ever learned about capitalism and the nature of wealth I learned from Donald Trump. And now I discover that I was entirely misled, at least as regards Trump’s particular role.
As I discussed in a post a couple of years ago, back in the 1990s I read a newspaper article about Donald Trump’s most recent bankruptcy, and was struck by the fact that, despite having vastly more liabilities than possessions, Trump was still treated as a wealthy man, and not worse than a pauper. And his creditors were willing to come to an arrangement that allowed him to live a rich-man lifestyle, if somewhat less opulent than before. I understood that to mean that modern capitalism makes debt almost as valuable as property, that the person with a billion in debt and the person with a billion in property are considered to be much more similar to each other than either is to the one who has neither debts nor wealth.
Now, having read several books on Trump, including most recently Seth Hettena’s Trump/Russia: A Definitive History, I see that this beautifully esoteric interpretation must yield — at least in the case of Trump — to a simpler and crasser interpretation: At various stages of his career Trump has been propped up by criminals who found the Trump Organisation, and its self-absorbed empty-headed chief, too useful as a cover for moneylending — first for the New York mob, then on a larger scale for Russian oligarchs and criminals from the former Soviet Union — to let it fail. In some sense, this is the value of debt: When there are large numbers in play, it’s easy to hide smaller numbers, just as long as you can come to an agreement to keep the flow going. And it does take a special kind of person to have managed to accumulate that amount of debt in the first place, making Trump’s debt truly a rare and valuable commodity.
I’m perfectly willing to accept a certain claim of innocence, that Trump believed all along that the fact that he kept managing to steer around failure demonstrated nothing but his unique genius. It reminds me of Hitler’s famous comment “Ich gehe mit traumwandlerischer Sicherheit den Weg, den mich die Vorsehung gehen heißt”: I follow, with the certainty of a sleepwalker, the path that Providence has laid out for me.
That narcissistic naïveté probably was, and remains, his most useful quality. First time tragedy, second farce.