Washington D.C. – Economic historian Phil Magness has publicly challenged Oren Cass, founder and chief economist of the conservative think tank American Compass, to articulate his criticisms of the economics profession. The direct call, made via social media, underscores a broader, ongoing debate between proponents of traditional free-market economics and advocates for a more nationalist, industry-focused approach.
Magness, a senior fellow at the Independent Institute, directly addressed Cass in a tweet, stating, > "In your own words, Oren, please explain what you think the economics profession is 'getting wrong.' I'd be happy to fact-check your claims for you." This statement highlights the intellectual sparring that has characterized their exchanges, particularly concerning trade policy and the role of economic theory.
Oren Cass, known for his "new right" economic vision, frequently criticizes the mainstream economics profession for its perceived overemphasis on "consumer welfare" and its adherence to concepts like comparative advantage, which he argues neglect the importance of domestic production and worker well-being. Cass contends that economists often fail to grasp real-world economic challenges, viewing markets as a "tool" rather than an unchangeable force.
Magness, conversely, champions traditional economic principles, including free trade and the theory of comparative advantage. He views Cass's arguments as a rehash of protectionist ideas and has been a signatory to declarations opposing tariffs, aligning with a broader consensus among economists on the benefits of open markets. Their disagreement often centers on the historical and practical implications of protectionist policies versus free trade.
The public exchange reflects a growing divide within conservative economic thought, with American Compass advocating for policies that prioritize domestic industry, strategic protectionism, and a focus on "producer welfare." This contrasts with the long-standing free-market orthodoxy championed by institutions and scholars like Magness, who argue that such interventions distort markets and ultimately harm overall economic prosperity. The debate continues to shape discussions around future economic policy.