RECOMMENDED READING
American Compass Releases Conservative Economic Agenda for 118th Congress
Hayek’s Broken Promise
Comparative Disadvantage

Over the past few months, a handful of Republican lawmakers have embraced economic policies that, not long ago, would have been unthinkable in the GOP.

In February, Sens. Mitt Romney and Tom Cotton — past and likely future Republican presidential candidates, respectively — introduced a bill proposing a path to a $10 minimum wage. The following month, Florida Sen. Marco Rubio announced his support for an Amazon unionization effort in Alabama. Elsewhere, Missouri Sen. Josh Hawley has pushed far-reaching antitrust bills that have made traditional conservatives shudder, and the bestselling author-turned-Ohio Senate candidate J.D. Vance has called for raising taxes on companies that send jobs overseas.

The emergence of the new economic counterculture is loosely connected to the two-year-old think tank, American Compass, whose founder, the Harvard-trained lawyer and former Bain consultant Oren Cass, routinely derides his adversaries as “market fundamentalists” peddling “stale pieties” from the 1980s. Cass left the free-market Manhattan Institute in 2019 to launch American Compass, the first right-of-center think tank dedicated to pushing the government to get more, rather than less, involved in national economic policy in order to help advance a certain set of social and cultural goals — a view Cass and his ilk have termed “common good capitalism.” The group’s mission: “To restore an economic consensus that emphasizes the importance of family, community, and industry to the nation’s liberty and prosperity.”

Continue Reading at Politico Magazine
Recommended Reading
American Compass Releases Conservative Economic Agenda for 118th Congress

Today, American Compass is releasing New Direction: Conservative Principles & Policies for the 118th Congress, an agenda for economic renewal, focused on the interests of worker, their families and communities, and the nation.

Hayek’s Broken Promise

It is a tragedy that Friedrich Hayek’s excesses, invested with the authority of his (deserved) reputation, became the unexamined default for right-of-center economic thinking in America.

The resulting orthodoxy too often combines a Panglossian insistence on defending market outcomes regardless of their quality with a reflexive belief that policy intervention can only be distortive for the worse.

But when it comes to international trade’s effect on the American economy, a knowing assertion that nothing should be done, followed by yet another “analysis” working backward to an argument that nothing needs doing, will no longer do.

Comparative Disadvantage

If comparative advantage is created rather than discovered, refusing to play the game has consequences.