The article reflects on a White House event where steelworkers and auto workers expressed concerns about the decline in U.S. manufacturing and the need for policies that would reverse this trend. The author notes skepticism among companies regarding the administration's strategies to restore the manufacturing base, emphasizing that nominal GDP growth requires real GDP growth to ensure true prosperity. Several policiesâsuch as reducing deficits, lowering interest rates, and implementing tariffsâare suggested to stimulate demand for American-made goods and revitalizing the middle class.
These individuals are deeply passionate about reversing our current manufacturing decline, not only to preserve and strengthen our vital middle class but also to safeguard our national sovereignty.
At its core, the theory is simple. Nominal GDP grows through injections: manufacturing output, public spending, investments, and exports. It shrinks through leakages: taxes, regulatory compliance costs, and savings.
Governments have a robust toolbox to make this happen: reducing deficits, nudging investors from equities into Treasuries with lower interest rates, cutting regulations and energy costs, and deploying tariffs.
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