President Trump Wants to Revive the 'American System of Economy'

March 23, 2017
President Donald Trump receives a NASA flight jacket on Tuesday March 21, 2017, after signing the NASA Transition Authorization Act of 2017 in the Oval Office at the White House in Washington, D.C. (Official White House Photo by Paul Williams)

In his speeches Monday at a Kentucky rally and Tuesday to Republican Party gatherings, President Donald Trump stressed that he intends to lead the country to return to "the American System" of economy. In the estimation of very qualified observers, the President "really meant it" both times -- he wants to return to the actual economic policies of Alexander Hamilton and George Washington, Henry Clay, Abraham Lincoln, the "American System."

Is Trump the President who can return us to the American System of economy? That remains to be determined, and depends on the country as well -- on us, on you. Should we return to it? Absolutely.

With some exceptions, most Americans and citizens of other nations no longer know what the American System of economy was. It was defined by Abraham Lincoln's economist Henry C. Carey, for example, as the American System directly opposed to the "British System" of free trade.

Those are the same British who for the past year, have been driving the McCarthyite campaign to discredit Donald Trump and drive him from the White House.

The "get Trump" McCarthyism is British, because Trump wants to return -- after decades of disastrous "globalization" and deindustrialization" -- to the American System of economy. And he appreciates the benefits of peace, of stopping Bush's and Obama's endless wars and collaborating with Russia and China to do so. Thus a British intelligence "dossier" produced for Hillary Clinton on Donald Trump, was the start of turning the Democratic Party's leadership into a McCarthyite mob looking for "Russians" lurking behind every White House column.

The pillars of the American System of economy were: 1) protecting and supporting American production so that the United States would become the great manufacturing nation it became; 2) constantly promoting and building the most modern national infrastructure, for the same reason -- the transcontinental railroads, the national highway system, the Apollo Moon project; and 3) a credit system based on national banking invented by the great Treasury Secretary Alexander Hamilton.

Today it means taking down Wall Street's mega-casinos by restoring the Glass-Steagall Act; establishing a Hamiltonian national bank for infrastructure and manufacturing; investing trillions in the highest-technology new infrastructure; developing fusion power, returning to the Moon and to deep space with human colonization and development.

This is what EIR Founding Editor, American System economist Lyndon LaRouche, developed recently as "Four Laws" to save the U.S. economy.

The American System also meant the Monroe Doctrine -- that the young United States would do everything possible to keep the British and French financial empires out of the Americas, so that all our nations could develop their economies and make reciprocal trade agreements to mutual benefit.

Today, the American System means linking up with China's New Silk Road initiative, where 60 nations are making such agreements in a "win-win" paradigm.

The Schiller Institute and EIR are building a major international conference next month in New York City to bring Trump's United States into that new paradigm, where the "American System" can flourish.

President Trump's understanding of the American System today is rudimentary, but seriously meant. The more Americans who know what it should mean, and act on that, the better chance that the British System era of "globalization" will end during his Presidency.




To GOP Activists, Trump Again Invokes American System Economics

Speaking to a dinner of the Republican National Congressional Committee March 21, President Donald Trump fervently spoke of the "American System of economy" for a second day, following his evocation of Henry Clay, Abraham Lincoln, and the American System at a Kentucky mass rally March 20. The last president to preach the American System may have been William McKinley; Trump's "whig" speeches have generated a freaked-out response from the Von Mises Society and similar British and "Austrian school" free traders and "libertarians."

"I called it the American model," said Trump, in a speech that had at first trod familiar ground of congratulations to fundraisers and Republicans present including himself. "And this is the system our Founders wanted. Our greatest American leaders — including George Washington, Hamilton, Jackson, Lincoln — they all agreed that for America to be a strong nation it must also be a great manufacturing nation."

The President invoked McKinley: "The Republican platform of 1896 — more than a century ago — stated that `Protection and reciprocity are twin measures of American policy and go hand in hand.... We renew and emphasize our allegiance to the policy of protection, as the bulwark of American industrial independence and the foundation of American development and prosperity."

Then Trump progressed to the American System's "internal improvements," or infrastructure projects in today's terms. "Our first Republican President, Abraham Lincoln, ran his first campaign for public office in 1832 — when he was only 23 years old.  He began by imagining the benefits a railroad could bring to his port [part] of Illinois — without ever having seen a steam-powered train.  He had no idea, and yet he knew what it could be. Thirty years later, as President, Lincoln signed the law that built the first Transcontinental Railroad, uniting our country from ocean to ocean....

"Another great Republican President, Dwight Eisenhower, had a vision of a national infrastructure plan. As an officer in the Army after World War I, he joined a military convoy that trekked across the nation to the Pacific Coast. It traveled along the Lincoln Highway — called then the Lincoln Highway. Its journey began by the South Lawn of the White House, at a monument known today as Zero Milestone.  Anybody know where that is? The journey made a great impression on then young Eisenhower.  More than three decades later, as President, he signed the bill that created our great Interstate Highway System — once again uniting us as a nation.

"Now is time for a new Republican administration, working with our Republican Congress, to pass the next great infrastructure bill. Our party must dream as big and as bold as Lincoln and Eisenhower."

Trump continued to the American System subjects of invention, and foreign policy. "Imagine the breakthroughs that will breathe fresh life into forgotten places. Picture the new roads that will carve pathways all across our land — and we need them. And think of the new inventions that will lift up the sights of our nation.

"Finally, as we imagine this new prosperity at home, let us also work to achieve real and enduring peace abroad.... The best Republican Presidents have not only been warfighters, but also peacemakers.  We will never hesitate to do what we must to keep us safe today, but we will always seek a more peaceful tomorrow. We will, and we will succeed.... If we stand for these things — safety, prosperity and peace — then there is no limit to what we can achieve."     

Quoth the very bothered Von Mises Society, "The economic policies of Whigs endure. Unfortunately, the dangers of Whig economic folly and fallacy do not diminish with time."

What "endure," are great nations built on the American System.

Xi-Trump Summit Generally Assumed, But Not Confirmed

Media in the United States, China, and Asia continue to report that Presidents Trump and Xi will meet in the United States April 6-7. But there is still no confirmation of this from either government, under concerted attacks by the British and their allies who fear "major power agreements" among America, China, and Russia.

The closest thing to substantiation from China came from the Foreign Ministry March 19: "On this visit to China by Secretary of State Tillerson, both sides had a deep discussion on arranging a meeting soon between the two heads of state and began relevant preparatory work," Foreign Ministry spokeswoman Hua Chunying said. "Both sides agreed to remain in close touch about this, to ensure the smooth success and fruitfulness of exchanges between the heads of state."

In the United States only Secretary of State Tillerson's decision not to attend the April 6 NATO foreign ministers meeting has led to reports that Tillerson will be taking part in Xi-Trump meetings. After angry British reactions, the State Department said March 21 that Tillerson was open to the NATO meeting date being changed so that he would attend.

Meanwhile, the White House confirmed President Trump will go to the NATO heads-of-state meeting May 25. China has invited him to the Belt and Road Initiative Forum in Beijing May 14-15.

Reports that Tillerson would go to Moscow April 12 also remain unconfirmed by either the United States or Russian officials as of March 22.