Research

The U.S. economic growth rate is softening, and equity markets are experiencing sharp declines. However, President Trump remains unfazed, dismissing these developments as a temporary dip before an imminent economic boom. While we sincerely hope this outlook proves correct, we see a growing risk in the opposite direction: a self-reinforcing downturn in the American economy. Trump’s vision is to build a significantly stronger U.S. industrial sector that can compete head-on with China. This is an ambitious objective, considering that manufacturing accounts for less than 20% of the U.S. economy and primarily involves products that are past their peak in the industry lifecycle. The Path to a Stronger Industrial Base Ideally, strengthening U.S. industry would involve making existing companies more efficient and fostering innovation to create globally competitive products. This could be achieved by...