Supporters of the Consumer Financial Protection Bureau Alex Wong/Getty Images

Trump’s Fateful Mistake on Consumer Financial Protection

By seizing control of the Consumer Financial Protection Bureau and placing an ideological extremist in charge, US President Donald Trump has brought to the fore the deepest flaws in his administration’s founding myth. The gutting that now awaits the agency will visibly harm many of the ordinary people Trump promised to defend.

WASHINGTON, DC – The founding myth of US President Donald Trump’s administration is that it will look out for ordinary Americans, and that cutting taxes on companies, deregulating finance, and rolling back environmental protections will achieve that. None of this makes any sense, and the administration’s claims that these measures will spur an economic boom – with annual growth accelerating from 2% to 3% – are pure fantasy.

American voters are beginning to figure this out – as indicated by recent election results in Virginia and elsewhere. But it will take a while for the falsity of Trump’s promises to be exposed, partly because many macroeconomic changes are complex and become apparent (or don’t) over time.

Now, however, Trump has made a major tactical mistake. By seizing control of the Consumer Financial Protection Bureau (CFPB), and placing an ideological extremist in charge, he has brought to the fore the deepest flaws in his administration’s founding myth.

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