The progressive issue many progressives don't seem to like

[Selatius]

63. Keynesian policy is failing precisely because the US does not manufacture anymore.

There's no point in deficit spending to keep a workforce going if they're sending their money to Chinese workers making stuff for Americans.

For Keynesian policy to work again, the US would have to retool trade policy to essentially equalize labor costs between itself and any country it chooses to trade with, including giants such as China. Then, it would have to issue generous tax subsidies to domestic companies to encourage "on-shoring" of jobs vs. out-sourcing the work.

This is the new reality. Prior to this, the US didn't have to do any of what I'm saying simply because every other industrial production center was being actively bombed to bits or occupied by a hostile army or constantly threatened with both in the last world war. They relied upon the United States to manufacture its way to victory and to rebuild a war-torn world and to win a cold war. With China no longer being run by communist zealots and Russia collapsed as an economic and military power, of course American business interests became far more willing to entertain the idea of moving industrial centers to cheaper labor pools in formerly hostile countries. They didn't have to worry anymore about Hitler on a rampage or Emperor Hirohito burning everything up in mainland China. Hell, we're even moving manufacturing to Viet Nam now, and the US bombed that country to shreds for over a decade some years back.