Rep. Ro Khanna Talks of Need to Future Proof the Economy

WASHINGTON, D.C. — There was as much discussion on inclusive economic policies as on Democratic campaign strategy when Rep. Ro Khanna, D-Calif., spoke at the D.C.-based think tank, Center for American Progress, on Wednesday. 

Talking strategies for fortifying the economy against future challenges, Khanna laid out his thoughts on how to ensure workers were not left behind in the wake of transformative technological advancements — and how the party could take advantage of these efforts.

He ceded that Industry’s anger was “legitimate,” but said that neither the Republicans nor Democrats were living up to their rhetoric. 

“[Trump] had four years. Where are the new steel plants? Where are the new factories?” he asked. “You want Joe Biden to reverse 40 years of deindustrialization in four years? Let’s be real about it. You can’t get the jobs to come back with just a tariff.”

But Khanna also doesn’t believe the exasperation and mistrust are just about the number of jobs. 

“What about pride? What about hope? What about our communities coming back?” he said. “These are the things that move people’s souls, not spreadsheets.”

Harkening back to Franklin D. Roosevelt and his New Deal, Khanna said he believes the way to rebuild American industrialization is in the government financing of plants — including legacy industries — with a new role for emerging sectors such as artificial intelligence and technology. He also advocated for investments in tech proficiency, broadband access and family-centered policies as essential components of future-proofing the economy.

Khanna said he is “open” to exploring the 32-hour work week and other efforts recognizing that dignity in work extends beyond financial compensation and prioritizes the well-being and fulfillment of workers.

“We are living in an anxious time because people feel like the American dream has slipped away,” he said, warning against allowing voices of resentment and division to overshadow messages of hope and progress.

He said Democrats need to be “concrete” about what they are going to do in a second term of a Biden presidency.

“We have a very difficult task because we have to convince people that the future of America is going to be better for them,” Khanna said. “We have to speak to the fact that wages haven’t kept up with the cost of health care, child care, education … and that we empathize with that.”

“We should not cede the economic argument to the Republican party … We have to make the argument for why our [Democratic] economic vision is better.”

“We have never been intentional in this country, since the New Deal, about creating …high-paying jobs in communities that are being left out,” Khanna said. “Giving people a fair shot to be part of this economy; That’s what the Democrats stand for: progressive capitalism.”

At the forefront of this concept are initiatives like apprenticeships, zero-interest loans, affordable child care programs and industrial decarbonization incentives. 

Khanna also talked about his Steel Modernization and Decarbonization Act that seeks to revitalize legacy towns in steel production by facilitating financing for the construction of modern steel plants equipped with advanced technology. 

In what he says would be a “version of what we did for semiconductors, but … for advanced steel,” he offered that such an act could bring 500 to 1000 jobs to towns that historically produced steel. And by prioritizing the creation of high-paying jobs in communities left behind by deindustrialization, Khanna said it aims to restore economic pride and hope.

“For so long we didn’t care; We watched as place after place was hollowed out,” he said. “My view is we need to create economic pride again; Give people a sense of a part of the modern economy.”

“The way we lose to Trump is if we allow Trump to define the narrative of America,” Khanna said. “He’s changed the entire conversation after Obama. It was ‘Hope’ and ‘Change … and then this guy comes in and all of a sudden it’s about who can punch harder, who can hit harder.”

“The labor movement is one of the things that gives me hope in this country,” he said. 

“I am a believer in innovation, entrepreneurship, and wealth generation,” he said. “You can’t have a cohesive multiracial democracy if you don’t have people participating in the modern economy. I believe the [Democratic] party needs to be a party that fosters wealth generation in communities across the country.”

Kate can be reached at [email protected].