The US election was fought on first principles: should government be strengthened or dismantled? The answer was resounding. The public wants better government, not less government.
Much of the economic debate in the US has been over short-term stimulus but the election turned on long-term structural issues. Barack Obama solidly carried much of the Midwest because he championed an industrial policy for the automobile and allied industries. What saved the Midwest was not a temporary stimulus but a skilful rescue package, complete with government financing and public investment in research and development directed at next-generation electric vehicles.
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