The Economic Theory Behind J.D. Vance's Populism

July 17, 2024

Guests: Oren Cass

Oren Cass is the founder and executive director of the conservative economic think tank American Compass and was Mitt Romney's domestic policy director in the 2012 presidential campaign; he was a contributor to the labor chapter of Project 2025. In the episode he argues for a pro-worker conservative economics centered on tariffs, industrial policy, and sectoral bargaining.

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About this episode

Klein opens with Trump's selection of J.D. Vance as his running mate, calling Vance an 'ideological pick' who has given Trump's impulses a coherent governing philosophy, then interviews Oren Cass, founder of the conservative think tank American Compass and Mitt Romney's 2012 domestic policy director. Cass argues the emerging right-populist economics rejects GDP growth as the goal: the economy should serve people, not the reverse, prioritizing family formation, stable communities, and human flourishing. He defends broad tariffs as a structural fix for the roughly $1 trillion trade deficit — financed on credit through bond and equity sales — arguing comparative advantage is created, not discovered (citing foreign semiconductor subsidies), and points to Reagan's 1980s auto quotas as a success. Klein pushes back on tariff-driven price hikes and supply-chain complexity. They also spar over whether this populism is substantive or 'populist washing,' given Project 2025 and Agenda 47's anti-union bent.

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