Republicans are shifting their stance on labor, free markets, and regulation, with the support of Trump and his allies.

• Trump's economic populist message has given conservative economic thinkers eight years to develop an intellectual and policy framework.
• The party has been gaining popularity with its worker-first, anti-corporate elite policy proposals, which are increasingly being embraced by Trump's economic circles.
• The low-tax, low-regulation, free-market ideology promoted by Reaganites has not benefited American workers significantly, but has greatly benefited corporate elites.

The first part of Eamon Javers' series on the growing conservative economic populism among Republicans close to former President Donald Trump is contained in this reported column.

The shift in how conservatives approach labor, free markets, and regulation is being led by key figures.

The Trump presidency dismantled the conservative economic doctrine on the GOP's stance on free markets and tariffs.

A second Trump presidency could shatter it on everything else in economic policy.

The 2024 presidential election is taking place amidst a significantly altered economic and political environment compared to previous Trump campaigns.

Trump's economic populist message has given conservative economic thinkers eight years to develop an intellectual and policy framework.

The party has developed a set of worker-first, anti-corporate elite policy proposals that are gaining popularity among its members and in Trump's economic circles.

The plans represent a significantly different approach to the economy compared to the Reaganomic consensus that was prevalent among the GOP from the late 1970s until Trump's first election in 2016.

If Trump is re-elected president in November, these proposals could be the focus of his second-term economic agenda.

I interviewed Sohrab Ahmari, a former Wall Street Journal editorial writer and one of the creators of this new populism, to obtain his perspective on the future of conservative economics.

Ahmari's vision for the Republican party was centered on workers and being more pro-union than the party currently is.

At one moment, Ahmari stopped and I exclaimed, "I can almost imagine the CEOs of Amazon and Starbucks having a heart attack while listening to this."

"Ahmari retorted, "Let them suffocate on it.""

Trumpian neopopulism

The new conservative, populist approach to economics includes disdain for America's corporate titans.

These neopopulists, immersed in the Trump era's culture wars, do not consider corporate CEOs to be the Republican party's natural allies in the broader struggle against big government. Instead, they view C Suite executives as liberal elitists who are attempting to impose their cultural values on middle America.

The low-tax, low-regulation, free-market ideology promoted by Reaganites has not benefited American workers significantly, but has greatly benefited corporate elites.

The wealthy class, it is argued, does not reside in the same areas or possess the same beliefs as the majority of social conservatives.

Conservatives should abandon the traditional, Republican economic ideology that has been promoted in Washington for decades by organizations such as the U.S. Chamber of Commerce and The Business Roundtable.

The new populists aim to unite conservatives and form a broader coalition, a capitalist worker's party of America, with a specific set of objectives.

Although it is not yet the dominant strain of Republican economic thinking in Washington, it is undeniably gaining popularity.

Emboldened by Trump's success in transforming the GOP in his likeness, the new populism seeks to harness the political zeal of Kid Rock's Bud Light cases and infuse it into the stagnant realm of macroeconomic thought.

If Trump wins the November election, his second administration may adopt a new economic thinking that could be felt in every decision. This could disrupt old alliances by empowering employees and local communities over national elites.

If Trump loses the election in November, this new economic strategy will likely influence the policy debates next year regarding unionization, tariffs, and maintaining the 2017 corporate tax rate reduction.

Recognizing 'work matters'

In Washington, an emerging network of institutions is refining and promoting neopopulist ideas on the political right. One of the leading institutions in this network is the nonprofit think tank American Compass, founded in 2020 by Oren Cass.

Cass contends that the Republican economic strategy has been misguided, with a primary emphasis on reducing costs and boosting consumer spending.

"Instead of focusing on production and value creation, Republicans need to focus on production and value creation," Cass said.

"The idea that economic policy should prioritize consumption above all else is a black letter economic doctrine. However, not all markets are productive, and it is not guaranteed that the things that maximize profits are always socially beneficial."

According to Cass, the primary cause of harm to America's social fabric is the offshoring of manufacturing in the US for decades. To address this issue, he and others advocate for broad-based tariffs.

In our recent interview, Cass stated that Wall Street is harshly critical of the private equity and hedge fund industries, stating that they do not generate value but rather extract it from the economy.

He pointed out that the $300 billion in value for the hedge fund industry does not equate to the $300 billion in fees generated by the industry.

Cass and other new conservative economists propose using strong government power, which was previously opposed by conservative politicians, to encourage companies to adopt a more socially responsible approach to work.

Cass stated that the objective is to make unproductive activities less appealing and productive activities more appealing.

Cass's financial transaction tax could have significant consequences for Wall Street, as he believes it will increase the cost of trading assets and decrease the financialization of the economy.

During his 2020 campaign, Biden stated on CNBC that he supports a financial transaction tax.

Cass stated that spinning assets in circles generates no value and actually results in the opposite, and he would compel public pension funds to invest their entire portfolios in US domestic investments.

Cass stated that tax cuts, traditionally a top Republican priority, are not on their list.

"Elevating these things to dogma and claiming that more is always better is not a conservative approach. The old "thou shalt not raise taxes" is an outdated belief."

A 'serious threat' to the GOP

If there were a Republican administration, executives on Wall Street and Silicon Valley would not expect to hear the same economic thinking as what is currently being discussed.

"Former Pennsylvania Republican Senator Pat Toomey, who left office last year, stated that the most charitable thing to call this is economic populism," said Pat Toomey.

Trump's new thinking may be left-wing collectivism and statist central planning, but it's unclear how much of this he would adopt if elected president again, according to Toomey.

"According to Toomey, this is a serious threat to the Republican party, as many people may leave if it appears to be aligning more with the left."

On Wednesday, Eamon Javers will publish the second part of his reported column on the emergence of conservative populism. In this installment, Javers examines the prominent individuals driving the change in the Republican Party's stance on labor, free markets, and regulation.