In a recent episode of Hub Dialogues, Samuel Hammond, senior economist at the Foundation for American Innovation, spoke to editor-at-large Sean Speer about the relationship between conservative populism and Silicon Valley’s elites, their plans for the country, and neoliberalism’s shortcomings.
Here are three key takeaways from their discussion.
1. A blossoming tech populist relationship
The 2024 election underscored a transformative alliance in American politics, merging conservative populism with Silicon Valley’s technological elite. This convergence, exemplified by figures like Vice President-elect JD Vance, represents a shift away from the traditional power centres of Wall Street and Texas oil, which have historically influenced U.S. politics.
Now, Silicon Valley’s technologists like Elon Musk and venture capitalists are joining forces with conservative populists to drive a vision for a re-industrialized America. Unlike earlier Republican agendas, which were shaped largely by economic elites, this new alliance prioritizes working-class interests and national economic security, aiming to counterbalance globalization’s impact on American industry and jobs. The alliance supports a tech-driven re-industrialization strategy to address global competitive pressures, particularly from China, while fostering job growth within the United States.
The fusion marks the emergence of a new “counter-establishment,” challenging the traditional elite’s influence over policy and aims at restructuring U.S. institutions. But the alliance’s success rests on its ability to effectively channel Silicon Valley’s innovative potential into industrial growth strategies that benefit both rural and urban communities.
2. A plan to upend regulatory bodies
Trump’s return to the White House offers a chance to implement sweeping reforms aimed at dismantling bureaucratic hurdles that hinder technological advancement, says Hammond. Past regulatory practices have often limited growth in high-tech sectors by imposing rigid oversight, which hampers innovation in critical areas like energy, defence, and artificial intelligence.
Aided by their Silicon Valley allies, the administration aims to decentralize regulatory control, encouraging swift technological progress. Figures like Elon Musk have been galvanized to support Trump, based on government agencies such as the Federal Aviation Administration (FAA) and Department of Justice (DOJ), which he believes stifle innovation due to biases. The Trump administration appears poised to push for structural changes that allows private tech firms greater operational freedom. This focus on reform aligns with a broader conservative goal to reshape institutional frameworks and facilitate industrial growth. The strategy’s success will depend on balancing reduced oversight with safeguards to prevent monopolistic or exploitative practices, ultimately aiming to foster a regulatory environment conducive to rapid technological development, but without sacrificing public accountability.
3. Rolling back neoliberalism
The marching orders for this new alliance may also include taking on neoliberalism.
For Samuel Hammond, neoliberalism is a technocratic, internationally focused policy framework that prioritizes global economic integration over domestic resilience. The result has left industries vulnerable to global disruptions and over-reliant on international capital flows. While usually framed as favouring free markets, he says, neoliberal policies have increasingly involved centralized, bureaucratic oversight, rather than promoting real economic dynamism at home.
The Trump administration’s focus on economic nationalism rejects this approach. Instead, it reinforces domestic industries and insulates them from global market fluctuations, particularly those tied to China. This shift represents a repudiation of the neoliberal era’s reliance on complex, internationalized supply chains in favour of resilient, American-controlled production networks.
For the U.S., this involves re-embracing policies like industrial strategy and selective trade protections to boost domestic manufacturing. For Canada, understanding this shift means rethinking trade and investment policies to maintain alignment with the U.S., while balancing its own economic and geopolitical interests.
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