Economic Security is National Security.

Author:Navarro, Peter K.

Dr. Navarro began by describing what President Trump is doing in terms of broad themed economic securities and national security. Past [US] presidents have often been characterized by short, but profound maxims that both guided their policies and led to some of their greatest successes. For example, Teddy Roosevelt's "walk softly and carry a big stick" was the motivating idea and principle behind transforming a domestic leaning Sea Service to what became a global reaching Navy. President Ronald Reagan's "peace through strength" was the guiding principle for an innovative rebuilding of our defense industrial base and the eventual downfall of the Soviet Union. President Donald Trump has upped that ante in a way with this principle "economic security is national security." The corollary to which is simply that a strong manufacturing and defense industrial base is critical to both economic prosperity and national defense.

The President is often accused of having no strategy, when in fact this principle--economic security is national security--is a strategy which guides everything he does. Navarro expanded on this point by using the example of tax cuts which he said lead to increased investment, productivity, and a rebuilding of our manufacturing and defense industrial base. Deregulation creates a pure supply side stimulus by lowering the cost of our manufacturers, thereby making us more competitive and able to export more. Through executive action, the President has been very successful reinvigorating "Buy American" policies. These policies, when applied to our steel and aluminum industries, help build up our manufacturing and defense industrial base.

A report on the first assessment of the defense industrial base ever undertaken by the government was recently released. Many agencies and more than 300 subject matter experts worked on it. The idea of the assessment was to look at nine different sectors such as aircraft, shipbuilding, and nuclear, along with six cross cutting sectors like cyber and machine tools. If you think about this from a production standpoint, you have assembly plants, but you also have a seven-tier deep supply chain. So if you need to build an F-35 and you have a component down in the fifth tier of the supply chain that is in financial trouble after eight years of sequestration, that would be a vulnerability in the defense industrial base and if we tried to surge your production that could be a bottleneck. The assessment...

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