Pence’s Dollar Store Dream Is Killing The American Middle Class

A few weeks ago, Treasury Secretary Scott Bessent rightly pointed out that “Access to cheap goods is not the essence of the American dream. The American dream is rooted in the concept that any citizen can achieve prosperity, upward mobility, and economic security. For too long, the designers of multilateral trade deals have lost sight of this.”

His comments received backlash from folks who believe that cheaply made Chinese goods are more important than the health of the American workforce and the longevity of our domestic economy.

Former Vice President Mike Pence jumped on the bandwagon in an interview with CNN to declare that “Cheap goods are a big part of [the American Dream].”

But cheap goods are actually expensive because they cost American jobs and economic longevity.

Yet, Pence’s statement underscores a troubling mindset that has long driven American economic policy: the belief that low prices are paramount — even at the expense of domestic industry and long-term economic resilience.

While outsourcing manufacturing to countries with lower labor costs may result in cheaper prices for consumers, the short-term gain comes at a long-term cost. And any politician, let alone a so-called Republican, should welcome the opportunity presented by Trump’s tariffs to reset and level the playing field to finally put America first.

The United States lost approximately 3.7 million jobs to China between 2001 and 2018, according to the Economic Policy Institute. Roughly 75 percent of jobs lost between 2001 and 2018 were in manufacturing, according to the report. Manufacturing industries include “computer and electronic parts, textiles and apparels, and furniture.”

Outsourcing manufacturing jobs to China has allowed companies to capitalize on lower labor costs — including Uighur slave labor — and less stringent environmental regulations. The shift has surely resulted in cheaper prices for goods for U.S. consumers — but at what cost?

One cost is the “dangerous” toys.

“If you’re tempted to buy kids’ toys at rock-bottom prices online this holiday season, consumer advocates want you to think twice — and maybe three times,” a November article from NPR reads. “The $8 gift might not meet U.S. safety standards that are meant to protect kids.” Potential risks highlighted by the article include “lead and phthalate exposure” as well as choking hazards.

This isn’t an isolated incident, either. The Consumer Product Safety Commission has recalled thousands of products from China over the years due to safety concerns.

Still, economists have long told us that while Americans are losing their jobs, it’s okay because access to cheaply made goods is apparently more important. But as Sanjai Bhagat, a Provost Professor of Finance at the University of Colorado at Boulder, wrote for The Washington Times, “This argument is fallacious.”

“Less expensive consumer goods are primarily short-lived disposable items, while the losses in wages and benefits of workers shifted from factory to service-sector jobs have been permanent,” Bhagat explained.

A report from the Economic Policy Institute further points out that “competition with low-wage workers from less-developed countries such as China has driven down wages for workers in U.S. manufacturing and reduced the wages and bargaining power of similar, non-college-educated workers throughout the economy.”

The erosion of the middle class isn’t just an economic issue; it’s a national one. Communities have been gutted and left in economic despair all because people like Pence value “cheap” goods over American jobs and the longevity of our country.

So sure, consumers may have access to cheap goods (that are cheaply made), but at what cost to the health of our nation?