The problem isn’t really that President Trump has claimed that he dissolved the Manufacturing Council and The Policy and Strategy Forum, rather than the fact that the business leaders that until just a day or two ago made up its members, were resigning and were ready to fold it up. This is just another media gawk at a Trump induced dust-up with reasonably offended (and concerned about their brand in today’s red-hot climate) business executives. Another tiny scandal flowing from a much bigger problem involving Trump’s reaction to Charlottesville.

But the bigger problem in terms of business leaders is that the division, enmity and contempt merely within the conservative movement in America – and therefore the divisions between the White House and Congress, and within Congress and especially within the GOP itself – will make getting any meaningful legislation on tax reform and God forbid, healthcare, almost impossible.

And that sort of division and chaos will chip away at what is in fact a very solid economy, with strong job growth and growing consumer spending. Investment needs stability to be able to discount future profits in a predictable manner. And right now, it’s hard to predict much policy. If Congress had recently enacted a Reagan-style tax cut, and if some manageable reform, if not repeal, of the ACA had been signed into law, the economy could keep chugging along at a good clip despite the violence and division. But the chaos at the White House is starting to take a real toll now.

Is a recession around the corner? Not even close. There may not be a recession for a few years to come. But government spending and tax rates are a burden on America’s innovation and therefore it’s future. What can Congress do to bring some possibility for getting legislation passed when they come back to Washington? And if a debt-ceiling and budget crisis meet up with Federal Reserve rate hikes, then we have reasonable cause for concern. So what con Congress do when it gets back?

Mitch McConnell will still be and will remain Senate leader for some time. Trump’s complaints against him will likely strengthen his standing with his senate colleagues, who are the ones who will or would decide his future. Ryan should likely remain Speaker, but with the Senate unable to move on legislation he’s been handicapped badly.

The Supreme Court is now tipping towards a truly conservative court, but one can imagine Ginsburg or Kennedy delaying retirement given how they likely view this administration. And the Supreme Court is not about immediate policy concerns. It’s time frame is much longer.

Local governments can and are doing more, but in directly opposing ways that further divide America into self-selecting regions.

The roar around Charlottesville will lessen over the coming weeks, and the policies that America and Americans need to prosper will still be waiting to be implemented. But now they will have to fight against a narrative that says that not only are they the wrong policies – from a progressive, liberal economic perspective – but that they are also somehow evil policies. So if the GOP Congress thought it was tough to agree in June, wait till September comes.

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