A New Economic Patriotism, Not a New Gilded Age

Ro Khanna | The City Club of Cleveland | April 14, 2025

It’s great to be in Cleveland — the city where Ritu, my incredible wife, was born and raised. Nine years of marriage have taught me one thing: hope springs eternal for the Cleveland Browns. Neil Sethi, my brother-in-law is here this afternoon— an accomplished business leader and more importantly musician. His family never misses a game. And if Sunday doesn’t go well, well… let’s just say the week doesn't start till Tuesday.

I’m incredibly proud of my in-laws, Monte and Usha Ahuja. Proud of their contributions to Cleveland’s healthcare and education. Proud that their story is a modern testament to the American Dream. And for anyone who thinks my positions are too far left — trust me, my father-in-law has tried to talk me out of them at many a Thanksgiving dinner. He is still trying.

Fifty-seven years ago, Robert F. Kennedy stood in this very club, speaking to a nation divided — not just by race and politics, but by economic neglect. He warned of those who sow division:

“When you teach that those who differ from you threaten your freedom or your job or your home or your family, then you also learn to confront others not as fellow citizens but as enemies — to be met not with cooperation but with conquest.”

And he urged Americans to bind up our wounds, to see each other as brothers and countrymen.

Today, we face serious times once again. And serious times demand serious conversations — conversations like this one. By being here, by engaging in this dialogue, you are patriots.

Like in 1968, America is divided. Not just by party line, but by an economic fault line that has shattered communities and left millions behind.

On one side, thriving tech and financial hubs are soaring to unprecedented heights. We bet big on leading in tech and finance, and bluntly, America is winning — outpacing Europe, Japan, and even China. My Silicon Valley district alone — valued at over $12 trillion—is home to Apple, Google, Nvidia, and Tesla. It’s the most powerful wealth engine in human history.

These days, that $12 trillion is up or down by a few hundred billion, depending on Tesla stock or market whiplash. But you get the larger point. Many young people where I live see the future as limitless. At least until recently.

But there’s a different, broken side to the American story.

Manufacturing towns — places like Warren, Ohio, and Johnstown, Pennsylvania, which built the steel that won World War II — have seen their greatness dimmed by decades of disinvestment. The promise of prosperity, once woven into the fabric of American life, now feels like a distant memory for too many.

Consider this:

• In the 1980s, America ranked 53rd in the world in income equality. Today, we rank 128th.

• The top 10% own 69% of the wealth. The bottom 50%? Just 2.6%.

• Since the 1970s: Salaries are up about 15%, but home prices up 500%, Healthcare costs up 500%, childcare up 200%, and college tuition up over 1000%.

• 1 in 4 Americans are unemployed, underemployed, or earning less than $25,000 a year.

These numbers are not just statistics. They are the story of a country drifting apart.

Franklin Roosevelt warned of the economic royalists — men who amassed wealth, rigged the rules, and tightened their grip on power.

That ideology is back.

Peter Thiel — the mentor and benefactor of Vice President Vance, an early collaborator with Elon Musk — argues that democracy itself is the problem. He writes:

“I no longer believe that freedom and democracy are compatible.”

To Thiel, the more democracy expands, the more the public demands concessions from capitalism — and that, in his view, hinders innovation. Democracy, he says, is too slow. Too cumbersome. Too messy for America to stay ahead of China.

And what era does he idolize? The 1920s. The Roaring ’20s, which gave us the radio, the automobile, and television — a time, he says, when America was truly optimistic.

Perhaps he forgot how that decade ended.

• The 1929 crash.

• The Great Depression.

• The rise of Hoovervilles and breadlines.

It happened because Andrew Mellon — the Musk of his generation — was Treasury Secretary and convinced President Hoover to slash government, seeing it as an obstacle to the ambitions of enterprising men. Government itself was the problem. Mellon was convinced prosperity would trickle down. That the strong would lift the weak.

Mellon’s laissez faire dogma drives Thiel’s techno-libertarianism today — the same ideology Roosevelt crushed in his battle against the economic royalists. They see democracy as a burden, believe workers should follow the dictates of a visionary elite, and insist government should step aside so a new aristocracy of talent can lead the way.

This subversive narrative is as old as the Republic itself. The railroad tycoons peddled it in the 19th century as they strangled competition and seized control of America’s infrastructure in the first Gilded Age. Corporate raiders repackaged it in the 1990s as they outsourced jobs overseas, preaching the gospel of comparative advantage and promising prosperity for all.

“Trust us,” they said.

And too many Americans did — only to be left with a trail of economic ruin and distrust for expertise.

I saw this devastation firsthand in Warren, Ohio. I sat in an old city government building as union leaders talked about factory closures. Daryl Parker, a former steelworker, told the story of people who took their own lives after losing their jobs.

Lives lost — not to war, not to crime, but to the despair of financial collapse.

Then there was Quentin from Milwaukee, who lost his job at Master Lock when the factory moved to Mexico in 2022 because of NAFTA. He told me something that still haunts me: his uncle, an African-American man who worked in manufacturing in the 1960s, had more economic security and opportunities than he fears his own children will have. Think about that. An African-American man in Milwaukee during the Jim Crow era had more economic hope than Black youth there today.

In Anderson, Indiana, Fred Davis showed me a binder — documenting over 40 plant closings. Each page told the story of a community that had its heart ripped out.

Trump and Vance railed against this broken system. They spoke about the hole in the hull of our economic ship. 90,000 factories closed in the past 25 years.

But they offer no hopeful vision for the future.

The scriptures teach us: “Where there is no vision, the people perish.”

Yet Trump and Vance stubbornly cling to 19th-century dogma in a 21st-century world. No matter how much you want to conquer Greenland and Panama or build a fortress with high tariffs — you simply can’t be a mix of James Polk’s expansionism and McKinley’s protectionism today.

What is their plan?

Tariffs — slapped on overnight, then some suddenly repealed. At one point, Trump's tariffs brought average rates to 22.5% — the highest since 1909!

As we saw, any of the tariffs could vanish in a few days, a month, a year, or with the next administration. But it takes 4–5 years to build a factory and a supply chain. So if you’re Mary Barra at GM or Jim Farley at Ford, why would you invest billions with zero certainty and zero support? You would not.

Here's what these tariffs are doing:

• Higher bills — $3,500 to $12,000 more for a car. Grocery costs rising. Construction prices for homes and factories surging.

• Consumer confidence at record lows as bond yields spike, pushing up mortgage rates and credit card interest.

• Market instability triggering panic about retirement plans

We are watching the most reckless, self-inflicted destruction of American wealth by any modern Administration.

Let’s be clear. We shouldn’t return to the 2000s, when we let autocratic regimes like China devastate our steel, aluminum, and electronics industries by dumping their production abroad instead of meeting the needs of their citizens at home. Allowing China into the WTO with a free pass on unfair trade and state control was a betrayal of American workers. Targeted tariffs, on strategic products, have a place.

But what about Trump and Vance’s indiscriminate tariffs, on friend and foe alike, with no plan for substitution of the critical inputs our businesses need? They’re dragging us back to 1970s-style stagflation — high prices, slow growth, and economic stagnation. That's not the future.

Indiscriminate tariffs didn’t build Silicon Valley, the Research Triangle, or University Circle here in Cleveland. Smart investment did. Strategic partnerships did. Sound, stable economic policy did.

And while they’re waging an economic war on our allies, Vance is waging a cultural war on universities — widely acknowledged to be the best in the world.

He called them “the enemy”. Sound familiar? Mao Zedong said the same before purging scholars and attacking universities in the Cultural Revolution in the 1960s. China stagnated for a decade.

Instead of tearing down universities, we should be lifting up Cleveland State, Ohio State, and Case Western. John F. Kennedy said there are few earthly things more beautiful than a university.

But Vance? He’s making his own story — that of having it rough as a kid but getting a credential at Yale — less likely for those growing up here today.

Vance may be young, but his ideas are old as they come.

His tax plan? 83% of the benefits go to the top 1%. That won’t bring jobs to Galesburg, IL; Downriver, Michigan; or Warren, OH.

For decades, we’ve handed trillions in tax breaks to the wealthy — and what did we get? More offshoring. More stock speculation. More inequality.

Now Vance wants to slash Medicaid, veterans’ benefits, food stamps, and education to pay for even more giveaways. He’s ripping away the means of living — a final insult — from the very factory towns where good jobs were already shipped overseas.

And his partner, Elon Musk, is waging a merciless campaign of mass firings, leaving people wondering whether their Social Security checks — or basic services — will even be there.

Two weeks ago, a mom hugged me in tears. Her 3-year-old, a NICU survivor, now needs homecare and a nurse to attend school. She asked, “What will happen to him?”

There is fear, Elon — in families you don't see.

I’ve known Elon for 15 years. Lately, it’s been a little rocky — he keeps following and unfollowing me on X. You know, like you do with an ex. I’ll say this: he’s a tech genius — but he should stick to cars and Mars.

What Musk and Vance are pushing is a crusade of dismantling and deregulation. The deregulation of the ’80s and ’90s didn’t free the economy — it financialized it. Wall Street profits doubled, while manufacturing profits were cut in half.

They now want government completely out of the way to usher in a New Gilded Age so that corporate elites, particularly the tech titans, can take the wheel.

But I say, it is time to turn the tables.

It is time to put Silicon Valley in the service of America — not America in the service of Silicon Valley.

That’s why today, I’m calling for a new economic patriotism. It is about giving citizens the power to shape the economic fate of our nation again.

This is not simply a call for new legislation, though legislation we will need, or for new business activity in factory towns, though private investment will be key. It is a national mission: a rallying cry for every American to take part in building a secure economic future for families and communities across our nation.

We will only heal the soul of America if we rebuild America. Our economic body must be strong for our national spirit to thrive.

It is time for a Marshall Plan for America — bold enough for this moment— a mobilization on the scale of World War II to reclaim our place as a manufacturing superpower and to create new prosperity in every sector and every community globalization left out. China is investing trillions in industrial lending and backing over 200,000 AI companies. We do not need to imitate them — but we must outdo them. We must lead.

That means fusing Silicon Valley’s ingenuity with Ohio’s industrial might. Integrating AI and advanced robotics into manufacturing will drive productivity. Let’s have silicon and steel, software and hardware, chips and ships — bridging our coasts and our heartland to launch a new American economic era.

The common work of building our economy can renew the bonds of citizenship that RFK spoke of — perhaps giving us new purpose beyond ourselves and the screens that keep us apart.

That's why I propose a White House Economic Development Council with a clear charge: driving economic growth in every region of our nation. The Council will bring together business, labor, universities, and community leaders to build not just high tech semiconductor fabs, but also modern steel plants, robotics factories, and next generation planes and ships, industries that are both advanced and familiar. Instead of letting Beltway think tank reports dictate what gets built, we’ll go to the people in hollowed out communities and ask: What kind of future do you want to create?

Private investment will be unleashed with targeted government financing and tax credits. The CHIPS Act I helped write turned $30 billion into $400 billion in private investment. Today, the United States is the only country in the world hosting the “big five” semiconductor manufacturers — Intel, SK Hynix, Micron, TSMC, and Samsung. This is how we begin the long, hard work of rebuilding a nation.

Our goal? National security and local revival. In places like Johnstown or Warren, we’ll launch modern empowerment zones — with a boost for any business that hires locally and interest-free loans to help them grow. We’ll focus on real jobs, not real estate deals.

We’ve seen the empowerment model work — zones in the 1990s expanded wages and jobs by 15% in the poorest regions of cities like Cleveland. Let’s bring that success to factory towns nationwide.

We won’t stop at good salaries — workers deserve a stake in the companies they help build. We should offer incentives to spur companies to extend stock ownership to their workers. More blue-collar stock ownership. More shared prosperity.

And we must say: if you make it, we will buy it. This is how Silicon Valley was built — when NASA committed to buying chips from Intel and Fairchild. The modern tech industry didn't just emerge from garages; it benefitted from bold government investment — think DARPA and defense — and government contracts. Today, the Intel factory in Columbus won’t thrive without customers. The federal government must commit to purchasing a portion of these chips while incentivizing companies like Nvidia and Apple to prioritize American-made products.

But policy alone isn’t enough — execution matters. Congress allocated $40 billion for broadband in 2021, yet no home is connected. We must fast-track critical national projects and prevent incumbent Internet Service Providers from challenging and slowing down where the government can build, as they did in the broadband bill. Instead of business leaders undermining government, we need FDR’s “dollar-a-year” men and women — leaders who get things done. Instead of dismantling state capacity, we must rebuild competent government with a nationwide call to serve. America deserves an exceptional, independent civil service, not expensive private consultants and political hacks.

Nothing will succeed unless we invest in our workforce. This means creating 100,000 new jobs every year for electricians, carpenters, machinists, lab techs, and health aids. Let’s ensure our kids have the chance to be skilled in a trade while they’re still in school. We also need 100,000 young Americans in the digital trades — digital marketing, cybersecurity, data management, and AI deployment — high-paying jobs that don’t require a four-year degree.

That is why I am working with OpenAI to establish AI academies in the Midwest — scaling it nationwide. These academies will prepare young people for the jobs of the future — including many service jobs — by equipping professionals like nurses and homecare workers with AI tools to improve care. I also launched the Techwise program with community colleges, Historically Black Colleges and Universities, and Hispanic-serving institutions — offering hundreds of students scholarships, tech certifications, and a pathway to a $65,000 a year job they can do without leaving home.

And we need business patriots — executives who answer the nation's call. Imagine a President convening 100 leading tech and finance CEOs in Warren, Ohio or Lorain, Ohio committing to new investments. That is the leadership we crave.

Economic patriotism doesn’t mean isolationism. We need people to like us if we want them to buy from us. We’ll also build more at home by working with other nations, not turning our backs on them. Great production comes from great alliances.

And it comes from great universities. Through the 100-University Initiative, we will invest $100 billion in research and development at 100 leading universities—sparking the next wave of economic growth. Just as Stanford and Berkeley helped power Silicon Valley, this investment will propel startups and bold breakthroughs in healthcare, science, and transportation nationwide. It may not match Cold War levels, but it will be the largest public R&D investment in decades.

Rebuilding America also means investing in our greatest asset -- our people. Why do manufacturers pay $25,000 in healthcare premiums per worker while competitors overseas pay a fraction? No wonder jobs go offshore. Skyrocketing healthcare costs have kept wages stagnant for 40 years.

We spend twice as much as the next leading country on healthcare, yet rank behind other industrialized nations in life expectancy, infant and maternal mortality, diabetes, and heart disease.

There is a better way.

It’s time to expand Medicare — yes that means Medicare for all — to lower costs, ensure every doctor is in-network, and reduce out of pocket expenses for families and businesses alike. What about efficiency? Medicare operates with less than 2% administrative cost and has significantly less fraud than private insurance. Similarly, social security's improper payment rate is less than 1%. Those are the facts.

And if we want people to work to rebuild their communities, we need universal childcare. During World War II, when women powered the factories, we had 3,000 war nurseries because someone had to take care of the kids. If we could do that in the 1940s, certainly we can provide $10-a-day childcare for families today with childcare workers making $20 an hour today!

By the way, the highest return on investment isn’t in AI — it’s in our children. It pays for itself. In the 1950's, America had 80% of kids in high school compared to Britain, France and Germany that had 20 - 40%. Europe did education for the elites; we did it for everyone. The result? Our economy soared. Today, as we compete with over a billion people in China, we must commit to education from the day an American child is born.

How do we pay for universal healthcare, childcare, and education? For starters, by asking billionaires to pay more. Many in my district pay a lower tax rate than teachers. I don’t begrudge them their wealth, but they can afford to contribute more. If I, coming from the wealthiest district in America, can vote to raise taxes on the ultra-rich, how can that be a hard vote for 434 other members of Congress?

Consider this. If we just got rid of the tax giveaways for the very rich and had the rates of the late 1990s — a high growth period — we would raise $5 trillion in revenue.

I am tired of the big money, the Super PACs, and the lobbyists blocking common sense policy. That's why I am one of just 10 members of Congress who refuses to take a dime from PACs and lobbyists. I have called for eliminating all Super PACs and PACs. We the people must make government for the people again.

At a time when we are producing unprecedented wealth, we can afford to provide every American what this country gave to me: a good education, quality healthcare, and a community that cares about their well-being.

You see, I want to build the America that inspired my parents to come here. My grandfather spent years in jail alongside Gandhi, fighting for India’s independence. My father came here in the 1960s for an education, and my mother followed soon after. My father-in-law and mother-in-law arrived around the same time to study in Ohio. That was when America, despite the divisions, was the place to be. Kennedy called us to go to the moon, and we did. We led in industry, innovation, and technology. We spoke to the hopes and dreams of people across the world.

I was born in Philadelphia in 1976 — our bicentennial year.

I believe in the America my parents came to — a nation brimming with confidence and humming with activity. If we embrace new economic patriotism, we can rebuild America and go beyond, answering Frederick Douglass’s call to be that composite nation. A nation where the grandson of a freedom fighter in India can serve in Congress alongside the grandchildren of those who scaled the cliffs at Normandy. A nation where people of every race, religion, and continent come together to spark the most productive era in our history. A nation that proves to the world that a strong, multiracial democracy can unlock the genius of ordinary people and drive the greatest advances of civilization.

So my friends and family in Cleveland, let them say of us that we were worthy of the sacrifices of our ancestors. We met the moment. And we built the most vibrant, dynamic nation the world has ever known.