Turning the Economy Inward, Revisited

From an article in the NY Times:
“In a Nov. 15 interview with The Hollywood Reporter, (Steve) Bannon described the goal of the “entirely new political movement” he believes Trump is leading:
“It’s everything related to jobs. The conservatives are going to go crazy. I’m the guy pushing a trillion-dollar infrastructure plan. With negative interest rates throughout the world, it’s the greatest opportunity to rebuild everything. Shipyards, ironworks, get them all jacked up. We’re just going to throw it up against the wall and see if it sticks. It will be as exciting as the 1930s, greater than the Reagan revolution — conservatives, plus populists, in an economic nationalist movement.”
Bannon is explicit in his identification of the enemy:
“The globalists gutted the American working class and created a middle class in Asia. The issue now is about Americans looking to not get f—ed over. If we deliver, we’ll get 60 percent of the white vote, and 40 percent of the black and Hispanic vote and we’ll govern for 50 years.””
Financing this plan means borrowing, increasing the national debt, something Tea Partiers don’t want. The other option is raising taxes, which Republicans generally don’t want. Chance of passing such a plan, not good.
A third option, simply create money by fiat to finance up-front costs is what I believe would work best. Looked at like that, I could find a lot of common ground with Bannon. I’ve described a similar idea and called it ‘turning the economy inward’.
Instead of constantly pressing for exports, which many can’t afford, turn the nation’s attention inward, to fix our own problems. Highways, including the back roads. Power distribution systems, including measures making them less vulnerable to hacking. More wind and solar power. Things like that.
But will the Fed go along? They did, when creating money bailed out the banksters. But to bail out the economy? To bail out ordinary workers?
Will CONGRESS go along? A lot of congresscritters are invested in industries that Bannon’s plan will hurt. It’s like healthcare, if they rein in what Medicare is forced to pay pharma companies, they hurt their own pocketbook. Nope, can’t be doing THAT!
We’ll see.


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