Oren Cass, the founder of American Compass and author of "The Once and Future Worker," discusses pivotal economic challenges facing the U.S. He delves into the decline of manufacturing and the coherence of Trump’s tariffs as a strategic response. Cass explores how traditional economic policies have overlooked the working class and debates whether Republicans or Democrats truly represent their interests. He emphasizes the need for a robust industrial economy, linking it to national security and sustainable job growth.
Oren Cass argues that the traditional free trade approach has undermined working-class jobs in the U.S., necessitating a new economic strategy.
The podcast emphasizes the importance of bringing back American manufacturing and respecting labor unions to revitalize local economies.
Kass highlights the link between economic disenfranchisement and social issues, advocating for tariffs as a tool to promote domestic production.
Deep dives
Shift in Republican Economic Policy
The podcast discusses a notable shift in Republican economic policy led by Oren Kass, who aims to reshape the party's approach to focus on the economic challenges faced by working-class Americans. Kass argues that the traditional Republican emphasis on free trade and deregulation has contributed to job losses and economic stagnation in certain communities. He emphasizes the importance of bringing manufacturing jobs back to the United States and argues for respecting the role of labor unions in supporting workers. This marks a significant departure from the old economic doctrines that dominated the party, representing a potential path toward creating a multiracial working-class conservatism.
Critique of Globalization and Economic Performance
The podcast highlights Kass's critique of globalization, which he believes has not been beneficial for the majority of Americans. He points out that while some metrics, like GDP, suggest economic growth, many working-class individuals have seen stagnated wages and life prospects. Kass notes that the American economy has been riding a wave of disparities in wealth and opportunity, particularly affecting lower-income communities. He argues that the focus needs to shift from raw economic metrics to the direct impact on daily lives, emphasizing the social issues arising from such economic models.
Case for Tariffs and Domestic Production
Kass advocates for the implementation of tariffs as a means to incentivize domestic production and reclaim American manufacturing from overseas. He challenges classical economic views that oppose tariffs by arguing they can restore balance to trade and help correct past inefficiencies. Kass illustrates that while many economists argue against tariffs, evidence from previous administrations shows they can be leveraged effectively without crippling inflation. By implementing a broad tariff strategy, Kass envisions a revitalized American industrial base that focuses on creating sustainable jobs for the future.
Cultural and Economic Roots of Social Dysfunction
The discussion includes a deep examination of the social dysfunction within America, particularly through the lens of the opioid epidemic and rising 'deaths of despair.' Kass emphasizes that these issues are not merely cultural but are significantly tied to economic disenfranchisement. He argues that as industries move overseas, communities suffer greatly, leading to increased social issues and a disconnect from the economic stability necessary for thriving families. This indictment of economic policy underscores the broader narrative that economic health is intrinsically linked to societal well-being.
Future of Republican Economic Strategy
Kass expresses cautious optimism about the Republican Party's potential to embrace a new economic strategy that genuinely addresses the needs of the working class. He acknowledges that the journey will be fraught with challenges, particularly with internal party dynamics that may resist such changes. The podcast concludes with a call for a reevaluation of economic priorities within the party that emphasizes community health and stability over unchecked market solutions. By engaging in this transformative dialogue, Kass believes there is an opportunity for a more holistic and inclusive approach to economic policy.
Yascha Mounk and Oren Cass discuss the reasoning behind Trump’s economic policy.
Oren Cass is the founder and executive director of American Compass and author of The Once and Future Worker: A Vision for the Renewal of Work in America.
In this week’s conversation, Yascha Mounk and Oren Cass discuss the decline of manufacturing in the U.S., whether there is any coherence to Trump's economic policy, and if the Democrats or Republicans are the more natural home for working class voters.
