Vance Wants Higher Prices, But at What Cost to American Consumers?

The U.S. dollar's status as the world's reserve currency has been a significant advantage for Americans, allowing them to consume goods and services at lower prices due to the strong demand for dollars.

Vice President JD Vance, however, has expressed skepticism about this arrangement, suggesting that it is akin to a 'resource curse' that allows consumers to consume cheaply but hinders producers.

In a 2023 clip popularized by economist Phil Magness, Vance argued that the reserve currency status makes it easier for Americans to borrow unlimited amounts of money, which can lead to overconsumption and undermine American industry.

But what's more interesting is Vance's distaste for 'consumers,' whom he seems to view as somehow embarrassing. He wants Americans to pay higher prices for goods and services in order to boost domestic manufacturing, but this would disproportionately harm low- and middle-income households who spend a larger portion of their income on basic necessities.

As the author points out, Vance's worldview is part of a long line of 'producerist' ideologies that prioritize the interests of producers over those of consumers. This approach can be seen as devaluing people and stages of life that are less 'productive,' such as children, retirees, and stay-at-home parents.