This is a continuation of the previous post on Trump’s political strategy over the long-term. Check out
Part I here
1. The Tech Bubble is bursting- and it has serious political ramifications.
The Social media tech industry is in trouble- their stocks have taken a beating this year, and a full-on sell off is in the works. It’s not an isolated problem- it’s across the board. A lot of this is because companies like Facebook ultimately provide a platform that is not unique and ultimately don’t actually create or sell anything of import to consumers. And no, I don’t think the data back-end of Facebook and Twitter is all that unique or interesting. They’ve been overvalued for a decade and it’s time that their bubble gets burst. What we’re seeing in the stock market is a “course-correction” and the rest of the market isn’t affected by it. Manufacturing, construction, overall agriculture, and retail are doing really good because they actually produce something. Social media doesn’t, and it’s taking the kind of beating the dot-com boom did in 1999-2001.
What does this mean for Trump? Well, it’s been a long time coming, and Trump’s set the US economy to kick into high gear and absorb the eventual tech burst. Trump is no dummy when it comes to economics and the stock market. He knows how it works, and positioned the US overall economy to step away from the implosion as much as he possibly could. Trump will push for anti-trust lawsuits which will erode the political power of the social media leftists. One of the salutary effects of this will be a much more open internet which no longer throttles conservatives.
When the tech bubble fully bursts, Facebook will be worth a lot less than it is- and they will lose a lot of money. They might even be over-leveraged with their debt commitments. As a result, they won’t be able to stay in San Francisco, Los Angeles, and Seattle. It just costs too much to operate in those cities- and they’ll move for more remote and/or cheaper areas. Even if they opted to stay in on the Left Coast, they’re not going to bring in the net tax revenue that California wants. Cali will quickly find itself in a budget crunch, and it’s going to hurt them really, really bad.
The bottom line is that California needs the only industry that’s really keeping them afloat in the state. It’s already in free-fall from the ramifications of unfunded pension and borrowing plans and runaway taxation on anything that moves. The welfare state they’ve developed can’t sustain itself as it is- and it won’t once their tech leftist buddies leave (or lose too much money). California is going to reach insolvency much earlier than anyone has anticipated- maybe even before the 2020 election. Think about the ramifications that a bankrupt California will have on the elections between now and 2024- and all of the blame will land at the Democratic Party’s feet.
And Trump knows this- which is why he’s protecting all the other economic sectors from the tech fallout. All he needs to do is bide his time, and wait.
And when the time is right, he’s going to exact his vengeance on California and the Left Coast. Probably just in time for the 2020 election.
Stay tuned for Part III- Which will cover Trump’s plans for the House of Representatives- and how he likely wanted the Democrats to win it. Yes, that’s actually a good thing for Trump’s plans.