The Republican Party's Mission is Done

About a year ago, I was at the Nixon Library. I had been to the Reagan Library months before and compared to that, the Nixon Library had very few visitors. Something to do with Watergate and resignation.

The docent said that about a quarter of the visitors to the Nixon Library are from China. The Chinese remember Nixon as the president whose visit helped to open up China to the rest of the world; Nixon visited China in the early 1970s and by the end of the 1970s, Deng Xiaoping had become China’s leader. Deng would begin the economic changes that began China’s amazing economic growth and opened it up to the rest of the world.

From the time of Lincoln – their first president – to about WWII, Republicans were focused on a domestic policy of making ours an industrial rather than agricultural economy. After WWII, Republicans were focused on a foreign policy of spreading capitalism to the rest of the world.

Eisenhower’s Marshall Plan helped to rebuild Europe and Japan after WII. Nixon visited China. Reagan stood in Berlin and told Gorbachev “Bring down this wall.” Bush and Cheney invaded Iraq, promising to make it a beacon of democracy and capitalism.

But a curious thing happened.

As Republicans were busily exporting policies for an industrial economy to the rest of the world, that industrial economy was – like the agricultural economy before it – being eclipsed by a new economy.

Trump’s policy seems weird but has an odd kind of logic seen from this perspective. It is quite possible that in his mind, seeing that the industrial economy has been successfully exported around the world (particularly in China), it is now his job to revive the domestic policy of creating an industrial economy here. This shift in focus to foreign countries has caused us to lose the industrial economy that made us great, made us a world power. It is his mission to recreate it.


But of course, the Republicans are where the Democratic Party was at the time of Lincoln: promoting policies for an economy already eclipsed. At the time of Lincoln, the agricultural economy had been eclipsed by the industrial economy At the time of Trump, the industrial economy has been eclipsed by the information economy.

Republican identity is so bound with capitalism (which I would say is a crude synonym for industrial economy), that it is not clear that they can shift to a new identity now that their mission is done. In any case, reviving the past has never seemed a particularly effective way to create the future.

Trump's Most Baffling Policy (Or, yet another chapter in Trump's on-going battle with the future)

We beat the Nazis because we had better manufacturing and research capacity. We invented the atom bomb before they did. We made tanks and planes faster than they could.

Near the end of the war, FDR asked Vannevar Bush to explore how wartime research efforts could be transformed into peace time efforts to create new technologies and jobs and to increase life expectancy. Out of Bush's recommendations, captured in Science, the Endless Frontier, came the National Science Foundation which has steadily grown since, providing funding for the basic research that is life-changing over generations.

Bush had great insight into the importance of research and how it is best conducted. Speaking of basic research that doesn't immediately translate into a new product, he wrote about how medical research could be supported within medical schools and universities.

Apart from teaching, however, the primary obligation of the medical schools and universities is to continue the traditional function of such institutions, namely, to provide the individual worker with an opportunity for free, untrammeled study of nature, in the directions and by the methods suggested by his interests, curiosity, and imagination. The history of medical science teaches clearly the supreme importance of affording the prepared mind complete freedom for the exercise of initiative. 

As the United States acted on recommendations such as Bush's, our country clearly took the lead in the creation of new technology, industries and companies. The National Science Foundation is both reality and symbol of our on-going support for research. Bush saw in research the basis for our economic progress as well: 

Where will these new products come from? How will we find ways to make better products at lower cost? The answer is clear. There must be a stream of new scientific knowledge to turn the wheels of private and public enterprise. There must be plenty of men and women trained in science and technology for upon them depend both the creation of new knowledge and its application to practical purposes.

As it turns out, support for research is non-partisan. Since its creation, leaders of both parties have steadily increased the amounts they've asked for to fund the National Science Foundation. Until now.

Trump is the first president to cut average funding from his predecessor. (Or more precisely, request that the average be lowered during his administration. Presidents make a request and Congress makes the appropriation.) Add to his list of leadership qualities, "Not a fan of scientific progress. Facts? I don't need research for that. I can make those up."

Among the institutions he's trying to erode is this most basic tool for progress. His desire to cut even research funding might be the most baffling of his attempts to retreat from the modern world.

Basic research matters. We rightfully pay attention to the Fed's policy when it comes to setting interest rates because that can change investment and spending. The National Science Foundation doesn't just affect investment but actually is an investment in intellectual capital, which is the basis for new technologies, industries, companies, jobs, and wealth. Research takes longer to work than interest rates, but has a bigger effect. I would argue that a slowdown in research funding results in a slowdown in productivity and wage growth. But of course something with a 20-year lag struggles to get much attention in this world of 20-second attention spans.

The amount we fund the National Science Foundation seems paltry to me. Even at its peak, it never even hit even one-tenth of one percent of GDP and it has averaged 4/100th of one percent of GDP in its lifetime. It seems to me that we could hardly err by making it larger each year. Much larger. But alas, the man who looks at our economy and concludes that the rich are not rich enough and the poor are not poor enough has also decided that we know quite enough already. That hardly seems the case to me.