Productive Economics - Julius Krein - Ryan Research Podcast #14
Jul 24, 2023
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Julius Krein discusses the history of American economic development, challenges faced by the managerial class, US-China economic relationship, corporate dynamics, bringing back manufacturing jobs, and the intersection of entrepreneurship, economics, and innovation in a changing economic landscape.
Shift from private sector to public intellectual sphere due to Trump's rise led to American Affairs establishment.
American Affairs critiques imbalanced post-2000 economy, advocates for policy shift towards manufacturing and competition.
US and China need to rebalance economic models for sustainability - US focusing on manufacturing, China on consumer-centric economy.
Deep dives
Transition from Private Sector to Public Intellectual Realm
The shift from the private sector to public intellectual realm occurred unexpectedly for Julius Crane and his friends due to the unique circumstances surrounding Donald Trump's rise in 2016. Observing the unconventional political climate and noticing the lack of conservative platforms open to Trump-friendly content, they started a successful blog, leading to the establishment of American Affairs Journal in 2016.
Core Issues Addressed in American Affairs
American Affairs focuses on critiquing the imbalanced economy that emerged post-2000, prioritizing industries like Silicon Valley and finance over manufacturing and vital tech sectors. The journal advocates for a reevaluation of neoliberal free trade policies, highlighting the shift towards industrial policy and competition with countries like China. It explores the outdated liberal frameworks that no longer effectively describe modern politics and competition with non-liberal states.
Managerial Class Dynamics and Shifts in Political Ideologies
The decline of the managerial class and the emergence of new ideological perspectives have led to political radicalism and shifts in policy thinking. Finding roots in the working class's disillusionment and political disruptions, the managerial class has faced increasing challenges, influencing the rise of populism and radicalism among the elites. The changing political landscape reflects a reevaluation of economic ideologies and a shift towards state-driven endeavors to address societal challenges.
Rebalancing US-China Relations for Long-Term Stability
To ensure long-term sustainability, it is essential for both the US and China to rebalance their economic models. The current export-oriented growth model of China and the financial dominance focus of the US are seen as unsustainable. The speaker emphasizes the need for both countries to shift towards a more balanced approach - the US focusing on strengthening its manufacturing sector and China transitioning towards a consumer-centric economy. Failure to achieve this balance may lead to further economic weakening for the US and internal pressures for China, potentially resulting in adverse foreign policy outcomes for both nations.
Impact of Industrial Policy on Economic Rebalancing and Working Class Dynamics
The discussion delves into the significance of industrial policy in reshaping economies and addressing working class concerns. By reorienting industrial policy to support manufacturing sectors and supply chains, countries like the US can enhance productivity and indirectly create employment opportunities. The conversation highlights how manufacturing resurgence can lead to increased regional productivity and stability, fostering stable work environments conducive to stronger family structures. Additionally, the emphasis is placed on the need for governmental industrial strategies to counteract the economic imbalances and precarious labor conditions prevalent in current industries.
Julius Krein is the editor of the American Affairs journal, has contributed to numerous publications, including The New York Times, The Washington Post, and the Times Literary Supplement. He also has a background in private sector finance.
In our chat, we discussed the history of American economic development, the trends that led to growth and decline, how the current order serves consumption / speculative financialization, and how a productive economy based on domestic manufacturing is optimal.
Follow him at: https://twitter.com/JuliusKrein
Visit his American Affairs journal: https://americanaffairsjournal.org/
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