WarRoom Battleground EP 662: Restring American Manufacturing; Crimes Of The Capitalists

Release Date: November 28, 2024

Hosts: Steve Bannon and Spencer Morrison
Guest: Spencer Morrison, Author of Reshore

I. Introduction

In this compelling episode of Bannon’s War Room, host Steve Bannon delves deep into the current state of American manufacturing, the influence of globalization, and the perceived crimes committed by capitalists within the administrative state. Joining Bannon is Spencer Morrison, a renowned author and advocate for reshoring American manufacturing.

II. Trump’s Influence on the Administrative State

Steve Bannon opens the discussion by critiquing former President Donald Trump's impact on the country's governance structures:

"The ways that Trump has changed the country in three weeks, he's not in control of anything. And all of what Timothy Snyder describes as obeying in advance, the examples are so abundant." [00:06]

Bannon argues that Trump’s actions have sown chaos within the Justice Department, not out of a strategic vision but seemingly to dismantle the administrative state:

"He wants to cause chaos and then chaos will lead to destruction, the destruction of the administrative state." [00:40]

He further criticizes Trump’s selective approach to combating the "swamp," suggesting that Trump’s motivations are primarily self-serving:

"What Donald Trump has always wanted is what's good for Donald Trump." [02:45]

Bannon laments the erosion of trust in career professionals within the DOJ and FBI, highlighting how Trump’s appointments have fostered a culture of political retribution:

"He is selecting people to run DOJ and the FBI who are adherence to a policy of political retribution." [03:30]

III. Spencer Morrison on Globalization and Economic Nationalism

Spencer Morrison provides a thorough analysis of globalization's detrimental effects on American workers. He traces the historical context back to the American Revolution, emphasizing how mercantilist policies have long constrained American economic independence:

"One of the main undercurrents of the American Revolution was economic freedom leading to political freedom." [09:14]

Morrison critiques the shift from high-value manufacturing to low-value exports, particularly highlighting the asymmetric trade relationship with China:

"What we've seen is American industry has been hollowed out. The American worker has been left with significant unemployment wages." [06:40]

He underscores the role of China's authoritarian regime and lax labor and environmental regulations in undermining fair trade:

"China is an authoritarian regime. The Chinese workers certainly do not have the same labor protections that American workers have." [16:18]

Morrison also points out the environmental costs that are externalized in Chinese manufacturing, making their goods appear cheaper but hiding the true cost:

"They're dumping it in there. That's not included. And that's part." [16:45]

IV. The Role of Tariffs in American Economic Policy

The conversation shifts to the strategic use of tariffs as a tool for economic nationalism. Morrison argues that tariffs are misunderstood and often misrepresented as mere sales taxes that burden American consumers:

"A tariff is not applied to a product's retail price. It's applied on the first sale price." [32:00]

Using a practical example, Morrison explains how tariffs have a minimal impact on consumer prices but exert significant pressure on foreign economies:

"A 10% tariff equates to just a 70-cent increase in cost. So that's how a 10% tariff actually would only increase the value of a product by 1.15%." [37:59]

He emphasizes that tariffs are essential for industrial, labor, and environmental policies, countering the narrative that they are inherently harmful:

"Tariffs are an essential part of industrial policy, labor policy, and environmental policy." [33:50]

V. Reshoring Manufacturing: Insights from Spencer Morrison

Spencer Morrison introduces his book Reshore, outlining the necessity of bringing manufacturing back to America to ensure economic independence and national security:

"Tariffs are going to be a key tool to making America rich again and helping us grow the economy, increase our technology." [21:51]

He highlights the critical dependency on foreign manufacturing, particularly in the semiconductor industry, and the national security risks it poses:

"America imports all of its semiconductors right now from abroad, almost all of them. The semiconductor factories are located in Taiwan." [25:01]

Morrison advocates for the revitalization of American manufacturing to foster long-term economic growth and technological advancement:

"The key to long-run economic growth is developing new technology. We're shooting ourselves in the foot in the long run here." [25:36]

He further explains that reshoring can lead to decreased costs in the long term, despite initial investments, by eliminating hidden environmental and labor costs associated with foreign manufacturing:

"We're going to see not an increase in the cost of goods, but actually a decrease in the cost of goods in the long run." [39:10]

VI. Debunking Rumors: VA Shutdown Claims

The episode also addresses circulating rumors about the Veterans Administration (VA) potentially being shut down by influential figures like Elon Musk and Vivek Ramaswamy. Mo Brooks clarifies these claims, asserting that the intention is not to dismantle the VA but to eliminate inefficiencies and unnecessary expenditures:

"There is no truth to that. [...] They want to get rid of the bloat and the unnecessary spending in each of these departments." [47:26]

Brooks specifies that the focus will be on auditing the budget to remove elective and non-essential expenditures, ensuring that funds are allocated effectively to serve veterans:

"There are elective surgeries that are done that should not be done. [...] We should not be paying for gender reassignment surgery with our taxpayer money." [50:27]

VII. Conclusion

In this episode, Steve Bannon and Spencer Morrison present a robust critique of current American economic policies, emphasizing the need for reshoring manufacturing to restore economic sovereignty and national security. Morrison’s insights into globalization and the strategic use of tariffs provide a roadmap for revitalizing American industry. The discussion also reassures veterans and the public about the stability and future of the VA amidst unfounded rumors of its shutdown.

Listeners are encouraged to explore Morrison’s book Reshore and engage with the broader conversation on reshaping American economic policy to prioritize national interests and the well-being of American workers.

Notable Quotes:

• "He wants to cause chaos and then chaos will lead to destruction, the destruction of the administrative state."
  – Steve Bannon [00:40]

• "Globalization has been an utter disaster for the American workers."
  – Spencer Morrison [06:40]

• "Tariffs are an essential part of industrial policy, labor policy, and environmental policy."
  – Spencer Morrison [33:50]

• "America imports all of its semiconductors right now from abroad, almost all of them."
  – Spencer Morrison [25:01]

• "There is no truth to that. [...] They want to get rid of the bloat and the unnecessary spending in each of these departments."
  – Mo Brooks [47:26]

This episode serves as a critical examination of America's economic trajectory, advocating for policies that prioritize domestic manufacturing and protect the interests of American workers against the adverse effects of unchecked globalization and administrative overreach.