Morning Wire: America’s Blue Collar Boom & Manufacturing Renaissance
Released on July 27, 2025
In this insightful episode of Morning Wire, presented by Daily Wire Editor-in-Chief John Bickley and co-host Georgia Howe, the discussion centers on the remarkable resurgence of America's manufacturing sector and the significant boom in blue-collar industries. Featuring a comprehensive interview with Joe Lavornia, Counselor to the Treasury Secretary, the episode delves deep into the driving forces behind the current economic landscape, the impact of recent legislation, and the broader implications for American workers and the economy.
Surge in Business Investment and Capital Expenditures
Georgia Howe opens the episode by highlighting recent Federal Reserve data indicating a substantial increase in business investments. This surge in capital expenditures is likened to the peak of the late 1990s tech boom, signaling a robust transformation in the U.S. economic fabric.
Notable Quote:
"The latest data from the Federal Reserve shows a stunning uptick in capital expenditures, one that rivals the heights of the late 90s tech boom."
— Economic Analyst [00:31]
The One Big Beautiful Bill and Its Economic Impact
Joe Lavornia provides an in-depth analysis of the "One Big Beautiful Bill," a pivotal piece of legislation that has spurred the current wave of business investments. He explains how retroactive expensing and other pro-growth policies embedded within the bill have incentivized companies to invest heavily in capital projects.
Notable Quote:
"The equipment production rose at a 23% rate. Not surprisingly, when we got the GDP data, we saw a 24% increase—really, really strong, really exciting news."
— Joe Lavornia [01:55]
Lavornia emphasizes that the bill's passage has created a favorable environment for sustained growth in capital spending, reinforcing the burgeoning blue-collar sector and heralding a manufacturing renaissance.
Manufacturing Renaissance and Re-Industrialization
The discussion underscores a significant shift towards re-industrialization, with policies fostering a manufacturing renaissance in the United States. Lavornia attributes this resurgence to a combination of deregulation, stable tax policies, and incentives for energy production, which collectively make the U.S. an attractive destination for manufacturing investment.
Notable Quote:
"Really, it's a re-industrialization, it's a manufacturing renaissance. It's what President Trump accurately describes as a golden era."
— Joe Lavornia [04:04]
Tariffs, Inflation, and Pricing of Tariff-Sensitive Goods
Addressing concerns about tariffs and their impact on inflation, Lavornia explains that despite economists' expectations, there has been minimal inflationary pressure from tariff-sensitive goods. He attributes this to lower-than-anticipated pricing platforms from major trade partners like China.
Notable Quote:
"Inflation is a monetary phenomenon. We're seeing inflation expectations come down."
— Joe Lavornia [05:43]
Regional Manufacturing Trends and Concerns
While the national data paints a positive picture, Cabot Phillips raises concerns about regional disparities, specifically citing a dramatic decrease in manufacturing activity in the Mid-Atlantic region. Lavornia acknowledges these pockets of softness but maintains that the overarching data remains robust, suggesting that localized issues do not undermine the broader positive trends.
Notable Quote:
"The hard data is very strong... We clearly show a V-shaped recovery in Capex."
— Joe Lavornia [07:17]
Corporate Investments and Job Shoring
Lavornia highlights significant corporate commitments to relocating manufacturing operations to the U.S., citing AstraZeneca's half-trillion-dollar investment as a prime example. He attributes this influx of investment to the certainty provided by the newly passed bill, coupled with favorable tax policies and President Trump's negotiation efforts.
Notable Quote:
"They're capital commitments that will occur over time... It's a much fairer, much more America first trade situation."
— Joe Lavornia [08:04]
Investor Optimism vs Public Skepticism
The episode juxtaposes the optimistic outlook of investors, evidenced by record highs in the S&P 500 and robust global market performance, against the skepticism prevalent among the general public. Lavornia addresses this disconnect by pointing to tangible economic indicators, such as rising blue-collar wages, which he argues will eventually resonate with and be reflected in public perception.
Notable Quote:
"Blue collar wages... we've seen a 1.2% increase in the first six months of President Trump's term. That's the second fastest all time."
— Joe Lavornia [09:37]
Federal Reserve Review and Treasury Secretary's Actions
The discussion touches upon President Trump's criticism of Federal Reserve Chair Jerome Powell, particularly regarding the Fed's ongoing renovation project. Lavornia notes that Treasury Secretary Scott Bessant is conducting a comprehensive review to eliminate any potential waste or inefficiency within the Fed's operations.
Notable Quote:
"If it looks like there's cost overruns that can't be justified, they need to look at it."
— Joe Lavornia [10:52]
Underreported Positive Factors and Future Outlook
Lavornia brings attention to the often underreported benefits of current economic policies, such as the need for lower interest rates to bolster sectors like manufacturing and housing. He underscores that while interest rates are currently high, leading to some softening in specific areas, the overarching trends remain positive with expectations of continued growth as policies take full effect.
Notable Quote:
"President Trump's policies... are focused on middle and lower income people. They need lower interest rates to be able to afford a home."
— Joe Lavornia [11:18]
Conclusion
The episode concludes on an optimistic note, with Lavornia reaffirming his belief that the U.S. is entering a golden era of economic growth driven by strategic investments, favorable policies, and a renewed focus on manufacturing and blue-collar industries. Despite some regional and sectoral challenges, the data collectively points towards a strong and sustained economic resurgence.
Final Notable Quote:
"You’re going to see it reflected in all sorts of numbers."
— Joe Lavornia [09:37]
Key Takeaways:
- Capital Expenditure Surge: Recent Federal Reserve data indicates a significant rise in business investments, paralleling the late '90s tech boom.
- Legislative Impact: The "One Big Beautiful Bill" has been pivotal in creating a pro-growth environment, fostering a manufacturing renaissance.
- Re-Industrialization: Policies encouraging deregulation, stable taxes, and energy production are driving a resurgence in U.S. manufacturing.
- Inflation Insights: Contrary to expectations, tariffs have not led to significant inflation in tariff-sensitive goods, partly due to favorable pricing from trade partners.
- Corporate Investment: Major companies are committing vast investments to shore up manufacturing in the U.S., benefiting American workers.
- Economic Optimism vs Public Perception: While investors remain optimistic, public skepticism exists, though indicators like rising blue-collar wages offer hope for broader confidence.
- Future Outlook: Continued growth is anticipated as policies solidify, with a focus on manufacturing and housing sectors potentially benefiting from lower interest rates in the future.
This episode provides a comprehensive overview of the current economic trends shaping America's blue-collar sectors and manufacturing landscape, offering listeners a nuanced understanding of the forces driving this renaissance.