As I stood in line to enter the Rose Garden in April alongside steelworkers clad in hard hats and auto workers proudly sporting their union attire, I realized this would be a different kind of White House event. Absent were the powerful Wall Street icons and multinational CEOs, replaced instead by a spirited group of Trump supporters from the margins—those who flipped Pennsylvania and Michigan from blue to red. These individuals are deeply passionate about reversing our current manufacturing decline, not only to preserve and strengthen our vital middle class but also to safeguard our national sovereignty.
Yet I’m increasingly concerned that our nation, particularly its shrinking manufacturing base, has been so battered by foreign competition, stifling regulations, and shrinking margins that we’ve grown numb, if not wary, of the potential of the “new economy.” Many of the companies I meet with express skepticism toward the administration’s efforts, and, even as they yearn for their former customers, they seem uncertain about how to win them back. The bold moves by the current administration aren’t revolutionary; they’re drawn straight from textbook macroeconomic theory—concepts we’ve taught for decades. So why the hesitation?
At its core, the theory is simple. Nominal GDP grows through injections: manufacturing output, public spending, investments, and exports. It shrinks through leakages: taxes, regulatory compliance costs, and savings. But a rising nominal GDP alone doesn’t guarantee prosperity—we need real GDP growth, which adjusts for inflation/deflation accurately to measure true growth. Governments have a robust toolbox to make this happen: reducing deficits, nudging investors from equities into Treasuries with lower interest rates (easing deficit refinancing), cutting regulations and energy costs to boost manufacturing, and deploying tariffs to spark demand for American-made goods. Another side benefit of tariffs and temporary equity market contraction is that it lowers the value of the U.S. dollar, which could stimulate our export market.
With all this lined up to revive domestic manufacturing, why are American companies hesitant to jump in? Our manufacturers—and by extension, our workforce—have been conditioned to endure global pressures, lulled into complacency by decades of cheap imports flooding our markets. This influx has dulled the bravado that once defined us, luring the middle class into a false sense of security, much to the supercilious delight of the globalists. Meanwhile, firms have grown skeptical of polarized politicians “helping” with recovery schemes—cash infusions that enrich a select few cronies and pet projects, balloon the deficit, and leave the working class empty-handed.
So why the wariness toward this administration’s plan to stimulate the economy and uplift workers? It’s just textbook economics, right? True, but it’s rare to see all these tools wielded at once. The Trump administration is doing exactly that—and it’s brilliant. The U.S. holds a unique advantage: the “bully pulpit” of the world’s dominant reserve currency and, per 2023 World Bank data, roughly 26 percent of global GDP. Yet our massive deficit and national debt are at breaking points. This moment demands bold action.
How do we reignite U.S. manufacturers and ease their fears of policy flip-flops with each election? Enter one of President Trump’s executive orders, “A Plan For Establishing A United States Sovereign Wealth Fund.” According to the White House fact sheet of February 3, the secretaries of commerce and the Treasury had 90 days to design a U.S. sovereign wealth fund (SWF). These funds—common globally—amplify a nation’s assets for strategic gain. According to the White House, sovereign wealth funds exist around the world as mechanisms to amplify the financial return to a nation’s assets and leverage those returns for strategic benefit and goals.
The United States can leverage such returns to promote fiscal sustainability, lessen the burden of taxes on American families and small businesses, establish long-term economic security, and promote U.S. economic and strategic leadership internationally.
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The U.S. already holds a vast sum of highly valued assets that can be invested through a sovereign wealth fund for greater long-term wealth generation. The federal government directly holds $5.7 trillion in assets. Indirectly, including through natural resource reserves, the federal government holds a far larger sum of asset value.
Fueled by tariff revenues, this SWF could offer a federal “guaranty policy”—an insurance mechanism of sorts, to reimburse corporate investments if future administrations reverse course. This would shield companies and lenders from political volatility, fostering a stable foundation for citizens’ financial well-being. Well-defined programs could also incentivize small manufacturers to modernize and expand, with the state guaranteeing capital investments.
We’re at the 5-yard line with the wind at our backs. Manufacturers and politicians must seize this moment, set aside partisanship, and cooperate to restore America’s greatness. The tools are proven, the strategy is sound, and the stakes couldn’t be higher. We have a mandate. Have we lost our competitive will—or are we just scared to act? The answer lies in what we do next.
