The Wealth of Nations Begins at Home
“Save yourself. You don’t owe these people anymore. You’ve given them everything.”
Lutnick refers to a recreation of tradecraft, which is valid. However, the primary focus of this recreation should be ending all forms of dumping, including those linked to migration, which is akin to outsourcing. We cannot continue to live in a world where the race is to the bottom.
Not everything should be about the cheapest option or minimum wages - its bad economics. Goods and services can be expensive if their cost is in direct proportion to the wealth of a nation’s people. Higher wages drive greater productivity, accelerating the value-added nature of products and services for the world’s highest concentration of human capital. The productivity gains of technology can and will also offset and justify reinvestment into human capital for human ingenuity. This exceptionalism justifies moderate isolationist policies.
The incredible feats that can be accomplished when the highest concentration of human capital strives for self-sufficiency are akin to the concept of world reserve currency status. Just as trust and faith determine the creditworthiness of the world’s largest debt redeemer, so too does a nation’s ability to sustain itself reflect its strength and stability.