White House Considers $2 Trillion Manufacturing Stimulus

A $2 trillion Coronavirus relief package may prioritize manufacturing jobs according to White House trade advisor Peter Navarro.

“We are facing significant structural headwinds” because certain service-oriented industries like entertainment, hospitality, and transportation have especially been hurt because of COVID-19, Navarro said. “The only way to fully rebuild the economy in the face of those headwinds is to significantly expand and strengthen our manufacturing base.”

“Put simply, we need to create more manufacturing jobs,” Navarro said. “Manufacturing jobs not only provide good wages but also create more jobs both up- and downstream through multiplier effects.”

Navarro, who President Trump chose as the policy coordinator of the Defense Production Act, says the multiplier effects of manufacturing would be felt in most industries that have been hurt by the pandemic–including hospitality and retail as they try to bounce back.

Meanwhile, Senate Majority Leader Mitch McConnell only expects to pass a $1 trillion relief package. President Trump, however, is in agreement with Navarro and would like the package to be “at least” $2 trillion and include incentives for American companies to bring offshored jobs back home. Trump has been actively repeating the phrase–“Buy American, Hire American” and “Make it in the USA”. Ideally, he would like Congress to pass the legislation before the August recess begins.

As the pandemic continues to affect global supply chains, this bill comes at a time when the White House is more eager than ever to maintain a supply chain on its own domestic turf–with pharmaceuticals and medical supplies at the highest priority.

“The only way to fully rebuild the economy in the face of those headwinds is to significantly expand and strengthen our manufacturing base,” said Navarro.

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