> First you invite industry to reshore via subsidies and preferential access to government contracts. If necessary, the government must directly invest in new firms.
Summarized: the government gives money to companies, or more charitable "invests".
I would totally agree with you on this path forward BUT FOR the fact that thos nation is dead broke. Completely dead broke. There's no responsible money to do this with. None.
It's not though. The US has been getting compensated for its military investment all around the world.
The explicit architecture of the petrodollar system is that the US will protect international shipping, and in return all petroleum contracts will be priced and executed in dollars. This makes the USD the international reserve currency, and every country participating in international trade needs to hold USD.
How can they put those USD to work? By buying up safe US government debt and other financial instruments.
The US has been rewarded with near unlimited borrowing ability assuming it remained the most stable, powerful, and trusted partner. We could use that to fund practically any investment we want.
> that the US will protect international shipping, and in return all petroleum contracts will be priced and executed in dollars
People say this, but the dollar is free-floating against other currencies and oil is priced on (OPEC-manipulated) supply and demand, so it seems like an accounting fiction. Like, we could price oil in pork belly futures.
Yes but they are settled in dollars, and all the countries of the world are in fact holding dollar reserves.
There's no money because your parties always vote for tax cuts and never for revenue raising measures.
And because of the dollars currency hegemony, the world helps you do it. Just let the tax cuts expire and increase the federal tax rates on higher incomes.
Even if you didn't want to do this, the world will literally fund whatever nonsense you want and you could deficit spend to restore manufacturing.
You as a country have a bunch of options (more than most) and it's sad to watch ye flail around ineffectually.