Why re-industrialization is just one piece of the puzzle to revitalize America

This week on The Nick Halaris Show we are featuring Julius Krein, the founder and editor of the American Affairs Journal. Julius is an incredibly deep thinker, a patriot, and someone who has dedicated his life to advocating for a better America. He launched the American Affairs Journal to provide an antidote to the dumbed-down, overly partisan forums of conventional media. On account of his eloquence and the quality of his thinking, Julius is fast becoming one of the most important public policy voices in the world today. 

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I wanted to have Julius on the show to highlight his important ideas about the decline of the neoliberal order and its impact on our domestic politics and the broader geopolitical landscape. He argues convincingly that we made a huge mistake in abandoning our productive capacity in the pursuit of ever greater corporate profits and executive pay packages and is concerned that we are running out of time to right the ship. In this fascinating episode we discuss:

• What motivated Julius to start American Affairs

• How the combination of extreme civic apathy and rampant corruption among the global elites have created a toxic, existential problem for global democracy

• Why the neoliberal order (think globalization and outsourcing) is a failed policy with potentially disastrous long-term consequences

• Why we lost the war on terror

• Why reindustrialization is just part of what we have to do get America back on track

• & Much, much more

Stay tuned to the end to hear Julius’ take on why our nation building efforts in Afghanistan proved to be so disastrous and learn what you can do to advance the cause of pragmatic, practical policy reform in America.

As always, I hope you all enjoy this episode. Thanks for tuning in! 

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 Julius Krein, founder and editor of the American Affairs Journal, discusses the challenges to the neoliberal order and the lack of a coherent vision in American politics. He highlights the influence of money in politics and the disconnect between elites and the political processes. Krein also shares his experiences in economic development work in Afghanistan and the incompetence he witnessed. He concludes by discussing the implications of the Cold War on tariffs and the need to protect strategic industries. The conversation explores the strategic error of losing the manufacturing base, the insufficiency of current measures to revitalize it, and the missing core aspects of industrial policy. It also delves into the stock market incentive problem and the erosion of conditions for the neoliberal order. The failures of the war on terror and the potential mistakes in Israel's approach to Gaza are discussed. The conversation concludes with a focus on policy solutions for reindustrialization, the need for government intervention in housing policy, and the mission of American Affairs.

Takeaways

• The American Affairs Journal was founded as a response to the major changes in political economy and geopolitics, particularly the end of the neoliberal consensus.

• While there has been some settling into the new normal of challenging globalization, there are still many unresolved issues and a lack of consensus on policy solutions.

• The lack of a coherent vision and the disconnect between elites and the political processes contribute to the current political challenges.

• The influence of money in politics and the focus on narrow agendas hinder broader national responsibility and purpose.

• The bear market in civic engagement and the disengagement of elites from local political processes are significant problems in American society.

• The prospect of great power competition, particularly with China, may open up new possibilities for domestic politics.

• Incompetence and misguided approaches were observed in economic development work in Afghanistan, highlighting the need for a more strategic and effective approach.

• The challenge to the neoliberal order involves a shift in the sectoral emphasis of the US economy, with a focus on intellectual property and financial rents.

• The implications of the Cold War influenced the decision-making around tariffs and the protection of strategic industries. Industrial policy should focus on improving production and sector competitiveness, rather than simply subsidizing sectors.

• The erosion of conditions for the neoliberal order poses a fundamental crisis that requires action before it's too late.

• The US needs to address the stock market incentive problem and align financial incentives with national economic and productivity growth.

• Government intervention and holistic approaches are necessary in areas such as housing policy and transportation infrastructure.

• Concerned citizens can contribute by engaging in policy discussions, supporting concrete policy changes, and bridging the divide between politics and pragmatic problem-solving.

Chapters

00:00Introduction to American Affairs Journal

03:02Settling into the New Normal

07:30Lack of a Coherent Vision

10:20The Influence of Money in Politics

13:53The Bear Market in Civic Engagement

19:26The Prospect of Great Power Competition

20:48Incompetence in Economic Development Work in Afghanistan

29:28 The Challenge to the Neoliberal Order

35:04 Implications of the Cold War on Tariffs

37:26 The Strategic Error of Losing Manufacturing Base

38:00 Directionally Correct, but Insufficient Measures

38:30 Missing Core Aspects of Industrial Policy

39:27 Improving Performance and Driving Sector Competitiveness

40:25 Quasi-Independent Agency or Farm Bill Approach

40:49 The Stock Market Incentive Problem

41:45 Compromising Values in the War on Terror

46:04 The Erosion of Conditions for the Neoliberal Order

47:37 The Strategic Failure of the War on Terror

50:56 Israel's Mistakes in Gaza and the US Role

53:16 Policy Solutions for Reindustrialization

56:10 The Disinterest of the Business Community in Government Engagement

59:26 Weaponizing the Immigration System

01:02:34 American Housing Policy and the Need for Government Intervention

01:09:51 The Change American Affairs Aims to Bring

01:11:35 How Concerned Citizens Can Help