The Conservative Teehouse
During one of the 2016 Republican debates, the Wall Street Journal’s Kimberly Stassel challenged Donald Trump on the projected revenue from his proposed tax plan. In essence Stassel claimed some economists doubted the growth factor Mr. Trump projects in his tax proposal.
What was highlighted within the question was one of the larger hurdles Trump faced as he needs to re-educate an entire generation on a fundamentally new vision of the U.S. economy. A return to a goods-based manufacturing and industry driven economic model.
President Trump’s MAGAnomic trade and foreign policy agenda is jaw-dropping in scale, scope and consequence. There are multiple simultaneous aspects to each policy objective; they have been outlined for a long time.
What you will find in all of Donald Trump’s positions, is a paradigm shift he necessarily understands must take place in order to accomplish the long-term goals for the U.S. citizen/worker as it relates to “entitlements” or “structural benefits”.
All other politicians, and even Presidents, begin their policy proposals with a fundamentally divergent perception of the U.S. economy. They are working with, and retaining the outlook of, a U.S. economy based on “services”; a service-based economic model. Consequently, their forecasted economic growth projections are based on ever-increasing foreign manufacturing dependency, and a self-fulfilling prophecy of service-based economics.
While this economic path has been created by decades old U.S. policy and is ultimately the only historical economic path now taught in school, Trump intends to change the course entirely.
Because so many shifts -policy nudges- have taken place in the past several decades, few academics and even fewer MSM observers, are able to understand how to get off this path and chart a better course.
President Trump continually proposed less dependence on foreign companies for cheap goods (the cornerstone of a service economy) and a return to a more balanced U.S. larger economic model, where the manufacturing and production base can be re-established and competitive based on American entrepreneurship and innovation.
No other economy in the world innovates like the U.S.A. President Trump sees this as a key advantage across all industry – including manufacturing.
The benefit of cheap overseas labor, which is considered a global market disadvantage for the U.S, is offset by utilizing innovation and energy independence.
The third highest variable cost of goods beyond raw materials first, labor second, is energy. If the U.S. energy sector is unleashed -and fully developed- the manufacturing price of any given product will allow for global trade competition even with higher U.S. wage prices.
In addition, the U.S. has a key strategic advantage with raw manufacturing materials such as: iron ore, coal, steel, precious metals and vast mineral assets which are needed in most new modern era manufacturing. Trump proposes we stop selling these valuable national assets to countries we compete against – they belong to the American people; they should be used for the benefit of American citizens. Period.
EXAMPLE: China was buying and recycling our heavy (steel) and light (aluminum) metal products (for pennies on the original manufacturing dollar) and then using those metals to reproduce manufactured goods for sale back to the U.S. – Donald Trump proposed we do the manufacturing ourselves with the utilization of our own resources; and we use the leverage from any sales of these raw materials in our international trade agreements.
When you combine FULL resource development (in a modern era) with the removal of over-burdensome regulatory and compliance systems, necessarily filled with enormous bureaucratic costs, President Donald Trump feels we can lower the cost of production and be globally competitive.
In essence, Trump changes the economic paradigm, and we no longer become a dependent nation relying on a service driven economy.
In addition, an unquantifiable benefit comes from investment, where the smart money play -to get increased return on investment- becomes putting capital INTO the U.S. economy, instead of purchasing foreign stocks.
With all of the above opportunities in mind, this is how we get on the pathway to rebuilding our national infrastructure. The demand for labor increases, and as a consequence so too does the U.S. wage rate which has been stagnant (or non-existent) for the past three decades.
As the wage rate increases, and as the economy expands, the governmental dependency model is reshaped and simultaneously receipts to the U.S. treasury improve. More money into the U.S Treasury and less dependence on welfare programs have a combined exponential impact. You gain a dollar and have no need to spend a dollar. That is how the SSI and safety net programs are saved under President Trump.
When you elevate your economic thinking, you begin to see that all of the “entitlements” or expenditures become more affordable with an economy that is fully functional.
As the GDP of the U.S. expands, so too does our ability to meet the growing need of the retiring U.S. worker. We stop thinking about how to best divide a limited economic pie and begin thinking about how many more economic pies we can create.
Simply put, we begin to….
…..Make America Great Again !
During one of the 2016 Republican debates, the Wall Street Journal’s Kimberly Stassel challenged Donald Trump on the projected revenue from his proposed tax plan. In essence Stassel claimed some economists doubted the growth factor Mr. Trump projects in his tax proposal.
What was highlighted within the question was one of the larger hurdles Trump faced as he needs to re-educate an entire generation on a fundamentally new vision of the U.S. economy. A return to a goods-based manufacturing and industry driven economic model.
President Trump’s MAGAnomic trade and foreign policy agenda is jaw-dropping in scale, scope and consequence. There are multiple simultaneous aspects to each policy objective; they have been outlined for a long time.
What you will find in all of Donald Trump’s positions, is a paradigm shift he necessarily understands must take place in order to accomplish the long-term goals for the U.S. citizen/worker as it relates to “entitlements” or “structural benefits”.
All other politicians, and even Presidents, begin their policy proposals with a fundamentally divergent perception of the U.S. economy. They are working with, and retaining the outlook of, a U.S. economy based on “services”; a service-based economic model. Consequently, their forecasted economic growth projections are based on ever-increasing foreign manufacturing dependency, and a self-fulfilling prophecy of service-based economics.
While this economic path has been created by decades old U.S. policy and is ultimately the only historical economic path now taught in school, Trump intends to change the course entirely.
Because so many shifts -policy nudges- have taken place in the past several decades, few academics and even fewer MSM observers, are able to understand how to get off this path and chart a better course.
President Trump continually proposed less dependence on foreign companies for cheap goods (the cornerstone of a service economy) and a return to a more balanced U.S. larger economic model, where the manufacturing and production base can be re-established and competitive based on American entrepreneurship and innovation.
No other economy in the world innovates like the U.S.A. President Trump sees this as a key advantage across all industry – including manufacturing.
The benefit of cheap overseas labor, which is considered a global market disadvantage for the U.S, is offset by utilizing innovation and energy independence.
The third highest variable cost of goods beyond raw materials first, labor second, is energy. If the U.S. energy sector is unleashed -and fully developed- the manufacturing price of any given product will allow for global trade competition even with higher U.S. wage prices.
In addition, the U.S. has a key strategic advantage with raw manufacturing materials such as: iron ore, coal, steel, precious metals and vast mineral assets which are needed in most new modern era manufacturing. Trump proposes we stop selling these valuable national assets to countries we compete against – they belong to the American people; they should be used for the benefit of American citizens. Period.
EXAMPLE: China was buying and recycling our heavy (steel) and light (aluminum) metal products (for pennies on the original manufacturing dollar) and then using those metals to reproduce manufactured goods for sale back to the U.S. – Donald Trump proposed we do the manufacturing ourselves with the utilization of our own resources; and we use the leverage from any sales of these raw materials in our international trade agreements.
When you combine FULL resource development (in a modern era) with the removal of over-burdensome regulatory and compliance systems, necessarily filled with enormous bureaucratic costs, President Donald Trump feels we can lower the cost of production and be globally competitive.
In essence, Trump changes the economic paradigm, and we no longer become a dependent nation relying on a service driven economy.
In addition, an unquantifiable benefit comes from investment, where the smart money play -to get increased return on investment- becomes putting capital INTO the U.S. economy, instead of purchasing foreign stocks.
With all of the above opportunities in mind, this is how we get on the pathway to rebuilding our national infrastructure. The demand for labor increases, and as a consequence so too does the U.S. wage rate which has been stagnant (or non-existent) for the past three decades.
As the wage rate increases, and as the economy expands, the governmental dependency model is reshaped and simultaneously receipts to the U.S. treasury improve. More money into the U.S Treasury and less dependence on welfare programs have a combined exponential impact. You gain a dollar and have no need to spend a dollar. That is how the SSI and safety net programs are saved under President Trump.
When you elevate your economic thinking, you begin to see that all of the “entitlements” or expenditures become more affordable with an economy that is fully functional.
As the GDP of the U.S. expands, so too does our ability to meet the growing need of the retiring U.S. worker. We stop thinking about how to best divide a limited economic pie and begin thinking about how many more economic pies we can create.
Simply put, we begin to….
…..Make America Great Again !
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