Oren Cass, founder of American Compass and former domestic policy advisor to Mitt Romney, argues that America's long pursuit of free trade has backfired. He discusses how tariffs could be a solution to revitalize U.S. industry and restore community values. The conversation highlights the divide between market forces and national interest, critiques the impacts of trade deficits, and examines the role of government in fostering innovation. Cass advocates for prioritizing family and community over mere economic metrics, emphasizing the importance of cultural values.
Oren Cass argues that America’s reliance on free trade has weakened national resilience, emphasizing the need for tariffs to revitalize industry.
The podcast discusses how the shift to a multipolar world, particularly regarding China, necessitates a reevaluation of American trade and foreign policy.
Cass highlights the link between trade deficits and societal issues like family breakdown, advocating for policies that align economic outcomes with community health.
Deep dives
The Mission of American Compass
The primary objective of American Compass is to foster an economic consensus that prioritizes family, community, and industry as integral components of national liberty and prosperity. This approach challenges the traditional libertarian economic philosophy that has dominated conservative thought, positioning itself instead as a restoration of classical conservative values. By emphasizing the importance of local and national identities, American Compass aims to reconcile market forces with the needs of families and communities. This perspective acknowledges the benefits of free markets but insists that they should not overshadow the social fabric that holds communities together.
The Decline of American Hegemony
The discussion emphasizes the transition from a unipolar to a multipolar world, where the U.S. is no longer the dominant global power, particularly in the face of an emerging China. This shift requires a reevaluation of American foreign policy and trade practices to maintain national security and economic balance. The speaker argues for a strategic approach to international relations that prioritizes national interests, particularly in trade negotiations. By asserting that the liberal world order has failed to serve American interests, the conversation underscores the urgency of adapting to new global dynamics.
Trade Deficits and Economic Imbalance
The conversation highlights the detrimental impact of trade deficits on the American economy, suggesting they reflect a deeper imbalance tied to deindustrialization. As manufacturing jobs have moved overseas, the U.S. has relied on imports without equivalent exports, creating a structural weakness in the economy. The decline in industrial capacity has been linked to rising social issues such as drug abuse and family breakdown, indicating that economic factors are closely intertwined with societal well-being. Proposing a reevaluation of public policy, the speaker argues for a balanced approach to trade that considers both economic outcomes and community health.
The Complexity of Globalization
Globalization is presented as a double-edged sword, where free trade agreements with countries like China have produced unforeseen economic consequences and societal challenges. The speaker posits that the U.S. has overly relied on free market principles without factoring in the realities of international dynamics, such as state-controlled economies. The intertwining of the American economy with China's has led to distorted market strategies that favor authoritarian practices over competitive, free-market benefits. This illustrates the need for policies that recognize and mitigate the risks associated with global economic interdependence.
The Role of Government in Economic Policy
A significant aspect of the discussion revolves around the need for thoughtful industrial policy as a counterbalance to the excesses of globalization and market failures. The conversation advocates for government involvement to ensure that economic policies align with broader social objectives, particularly regarding workforce reindustrialization. By examining historical precedents where the government has successfully prioritized strategic industries, the speaker argues for a renewed focus on industrial policy to enhance long-term economic resilience. This reflects a belief that, while markets should lead, public policy is essential in steering economic growth towards national interests.
Cultural Consequences of Economic Trends
The conversation stresses the importance of acknowledging cultural factors in relation to economic policies, noting that the decline in traditional societal structures corresponds with economic shifts. The speaker argues that issues like family breakdown and social isolation are exacerbated by economic policies that neglect community needs. By fostering an environment that values community-building alongside economic growth, conservative policies can contribute to restoring social solidity. This holistic view emphasizes that addressing cultural decay requires integrating economic policies with a commitment to strengthening family and community values.
I sat down with Oren Cass, founder of American Compass and former domestic policy advisor to Mitt Romney, to unpack why he believes America’s decades-long pursuit of free trade has backfired—and why tariffs might be the key to reversing the damage. Oren explains how globalization and an over-reliance on market orthodoxy divorced from national interest have hollowed out American industry, eroded national resilience, and disconnected Americans from purpose, family, and community.
