FROLITICKS

Satirical commentary on Canadian and American current political issues

Dec 29

Trump Administration’s Biggest Blunders of the Past Year

by bcurry

Remember what prevented George H.W. Bush from getting a second term was his failure to adequately address the economy at that time.  Thus the phrase: “It’s the economy stupid”.  What we now see under Trump’s second term is his downplaying of what is happening to the economy, including the continuing high inflation and increasing unemployment across the country.  One has to remember that the real impact on inflation of the tariffs will only be felt next year.  In addition, the discontinuance of subsidies for Obama care will also result in insurance premium increases for millions of Americans.  It’s becoming increasingly evident that a major split among Republicans is beginning to show as a result of the resulting anger among their constituents. 

Instead, the Trump administration seems to be concentrating on foreign policy initiatives.  Here again, there are obvious problems with a number of issues.  Trump cozied up to Putin from the outset, even meeting with the Russian dictator in Alaska which resulted in no change in the aggression against Ukraine.  Now, Trump is attempting to play the peacemaker by holding numerous meetings with Putin and Ukraine’s Zelensky.  Unfortunately, Putin is playing Trump like a fiddle and will not stop until his occupation of Ukraine is complete and is recognized by the U.S. as being legitimate, something Ukrainians may not be able to abide.

When it comes to Gaza and the Israeli administration under Benjamin Netanyahu, Trump continues to obscure the real issues in Palestine because of his close relationship with Netanyahu.  Once again, the Trump administration is attempting to broker a more permanent ceasefire agreement, while failing to provide any strategic plan for Palestinian self-rule in Gaza.  With the horrendous economic situation, lack of food and few medical services in Gaza, the U.S. appears to simply ignore what the war has done to the Palestinian people, its infrastructure and its governance.  The administration has failed to see Netanyahu’s drive to formally and militarily occupy Gaza and the West Bank, much to the opposition of America’s allies and Arab states.  Netanyahu rejects the concept of a two-state solution regarding Palestine and to date Trump has not taken a clear position on the matter.

On the other major foreign policy initiative, the Trump administration has launched an all out war on Venezuela and notably the country’s president, Nicolás Maduro.  Not only have they attacked boats in international waters off the coast of Venezuela, but Trump declared the air space around the country as being closed and has implemented a naval blockade against tankers containing Venezuelan oil.  In addition, Trump recently disclosed that a facility had apparently been destroyed within the country, without providing more details.  Moreover, his administration has not ruled out the use of the American military’s involvement in land incursions.  Given the adversarial approach by Trump towards Maduro, one cannot rule out the real objective as being regime change.

At home, Trump has backed policies that allow the Big Tech industry to grow unfettered, especially when it comes to artificial intelligence (A.I.).  The mutually beneficial alliance is even causing concern among some conservatives.  The biggest tech companies have gotten almost everything they wanted from Trump, whose administration has cleared the way for the fast-tracked building of data centers that power A.I. development.  As far as issues such as A.I. safety for children and A.I.’s effect on jobs, the Trump administration has opposed any regulation governing the industry’s actions and has actually taken federal measures to block state laws on A.I.  The implications of fast-growing technologies like A.I. have already raised new issues that are likely to play into next year’s midterm elections, much to the chagrin of many Republicans.

These are but a few of what I would consider as being major blunders under the Trump administration.  As a result, 2026 will be a tough year both domestically and abroad.  In addition, there are still a number of important cases before the Supreme Court, including the use of tariffs by his administration and whether the president has the authority to impose such trade measures.  We can only wait and see.

Artificial Intelligence Donald Trump Economy Foreign Policy Israel Latin America Republican Party Trump Ukraine US US Politics

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Oct 31

When Will the High Tech Stock Market Surge Slow Down?

by bcurry

Here are a couple of interesting stats about American high tech companies.  Market concentration has never been greater than in past decades, as the one created by Artificial Intelligence (A.I.).  According to senior index analysts for S&P Dow Jones Indices, Nvidia alone, which makes A.I. chips, makes up more than 8 percent of the S&P 500.  Nvidia is now worth $5 trillion as it continues to consolidate power in A.I. boom.  Apple and Microsoft now top $4 trillion. Those companies combined with Meta, Amazon, Alphabet and Tesla make up more than a third of the entire index.  According to Harvard’s economic faculty, spending on data centers, which are filled with the Nvidia chips, accounted for 92 percent of the country’s gross domestic product (G.D.P.) growth in the first half of 2025.  Chip technology is a powerful technology that can be used to develop advanced weaponry and drive economic opportunity.  Companies like Microsoft and the software company Oracle are pouring hundreds of billions of dollars into building data centers for A.I.

Now the question becomes: “What is the high tech impact on main street versus wall street?”  Most analysts are concerned particularly about the impact of current and future A.I. investments on the labour market for example.  While the current situation continues to produce more millionaires and billionaires, there is already evidence that companies are looking at ways of reducing labour costs through A.I. and A.I. assisted robotics.  For example, it concerns me that Amazon has been aggressively looking to do more with less.  It also concerns me that Amazon recently announced that it was laying off 14,000 corporate employees partly due to its use of A.I.  It is further reported that Amazon spent more than $34 billion on capital expenditures in the third quarter of this year, in large part to set up data centers that power cloud computing and A.I.  It should be noted that the company’s sales totalled $180.2 billion from July through September of 2025, up 13 percent from the same time in 2024.  Profit was $21.2 billion, up a whopping 38 percent.  Furthermore, as an obvious future cost cutting initiative, the New York Times reported that Amazon’s automation team has ambitious goals to use robotics to avoid hiring more than half a million workers by 2033.

Apple’s iPhones are fuelling record sales and profit so far this year, despite raising prices on its latest iPhone and having largely avoided the A.I. arms race.  However, the company still accounts for about 6 percent of the S&P 500 index.  While Apple is not pouring billions of dollars into data centers, developing expensive A.I. systems or building its own chatbot, the company continues to collect payments from Google.  Apple also charges A.I. companies to reach iPhone customers.  Most importantly, instead of bringing its manufacturing home to the U.S., Apple shifted some production from China to India, Vietnam and Thailand.  Almost nothing is made in America, and an estimated 80 percent of iPhones are still made in China.

All said and done, some investors have questioned whether A.I. will actually increase productivity and sales.  This is the trillion dollar question given that the short-term returns have not been all that great in light of the billions of dollars of current investment capital.  Nevertheless, it’s clear that the stock markets are apparently very optimistic.  Only time will tell. 

In addition, there is still the expected negative impact on the labour market as evidenced by recently announced employee cutbacks by several high tech firms using A.I.  A.I., complemented by enhanced robotics, is seen as a tool that could replace people in many jobs, including those in white collar occupations. The jury is still out on this one.  Today, youth unemployment in North American is at its highest rate and recent college graduates in several fields, including in the computer sciences, are experiencing a great deal of difficulty in obtaining employment in their field of study.  Higher unemployment may be one of those areas on main street that would be the result of the potential direct impact of what’s happening on wall street.  Of course, the billionaires would argue otherwise.

Artificial Intelligence Artificial Intelligence Economy Labour Force US

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