Exposing the Hidden US History Fueling Tariffs, Shutdowns, and National Breakdown

Yves here. Most countries and peoples engage in flattering myth-making. But the exceptional US may be exceptional here in the degree to which we whitewash our history and the consequences of acing on these national myths.

By Lynn Parramore, Senior Research Analyst, Institute for New Economic Thinking. Originally published at the Institute for New Economic Thinking website

In his new book Challenging the Myths of U.S. History, historian Marc Egnal takes aim at the stories Americans like to tell themselves — on both the right and the left.

He argues that America’s path has been shaped less by abstract ideals and more by the economic and territorial ambitions of the upper class. Racism, he says, wasn’t an unfortunate byproduct, but deeply woven into that drive for expansion. Egnal takes aim at both ends of the political spectrum: he challenges MAGA efforts to whitewash the uglier parts of history, but also critiques the “liberal synthesis” — the familiar story that admits past wrongs but still frames the U.S. as steadily marching toward freedom and progress.

Egnal’s take on U.S. history lays bare the roots of today’s chaos — political dysfunction, rising violence, Trump’s staying power, and the economic pressures Democrats keep missing. In a conversation with the Institute for New Economic Thinking’s Lynn Parramore, he breaks down how the past still drives the battles shaping America now.

Lynn Parramore: You argue that America’s development was driven less by abstract ideals like liberty and more by the economic interests of its elite — especially their pursuit of growth and expansion. How does this challenge the narrative of American exceptionalism?

Marc Egnal: American exceptionalism meshes nicely with the “liberal synthesis,” the story that people learn in school. The United States, like many countries, has its own myths. The U.S. myths go back to the “City on a Hill” and John Winthrop — the whole idea that it stands alone, apart from other nations. The country’s history, as it’s taught and understood, really circulates around these myths.

Textbooks reinforce this outlook and point to a few high-minded documents as the key to America’s past. The Declaration of Independence is ennobled, the Gettysburg Address is celebrated. Those dots are connected to shape the narrative of the United States as a country guided by high ideals, more so than other nations are. It’s the country of the Statue of Liberty.

While that’s not an absolute fabrication, it is a myth. It’s not the substance of what actually went on.

LP: You stress that historians should ground their work in evidence, not political agendas. How does that principle apply to today’s debates over how schools teach history, especially on race, inequality, and national identity?

ME: Starting in the 1960s and continuing into the 1990s, the liberal synthesis emerged. That’s the idea that America has faced problems in areas like race, foreign policy, inequality, and the position of women, but bit by bit, progress prevailed. We’ve addressed these issues through two waves of feminism, the Civil Rights Movement, and so on.

LP: The arc of the American story bends toward justice.

ME: Exactly. I offer a critique of that retelling from one perspective, while MAGA and Trump approach it from a very different one. What angers MAGA is the uncomfortable fact that America had aspects as nasty as racism and slavery, and that many Southerners (and others) actively defended it.

The demand that we accept, or even honor, Confederate leaders and name military bases after them is their response to that history. They brush aside rebellion and racism. But if you look at professional historians — the members of the Organization of American Historians or the American Historical Association — almost uniformly, they reject the MAGA/Trump perspective as a distortion of the past.

At the same time, I argue that the liberal synthesis has its shortcomings too.

LP: Let’s talk about those limits. Take the Civil War — how does the liberal synthesis explain its causes and what each side was fighting for? Where does it fall short?

ME: The liberal synthesis sums up the cause of the Civil War in a single word: slavery. It’s primarily framed as a moral conflict. The North opposed slavery on ethical grounds, while the South defended it. The war is seen as the result of a fundamental moral disagreement between the two sides.

Overwhelmingly, professional historians adhere to that view. They reject the state’s rights explanation. I don’t accept the state’s rights view either, but the idea that the North went to war because of a moral revulsion against slavery doesn’t stand up to the facts. The abolitionists were a small, reviled group in the North. And when the North went to war in April 1861, Lincoln was willing to accept a 13th Amendment — not the one we know that ended slavery, but one that would have constitutionally protected slavery where it already existed.

LP: And support for slavery wasn’t confined to the South — many New Yorkers are surprised to learn that the city’s mayor once advocated secession, given the city’s deep financial ties to the South, especially through the cotton trade.

ME: Yes. A good example of the play of economic interests.

LP: You point out that a key goal of the North in the Civil War was to build a strong, federally-backed industrial state. Is that mission is still shaping our politics and economy today?

ME: Absolutely. Understanding the Civil War as driven more by economic goals than by a commitment to ending slavery helps us see how those priorities still shape American politics and the economy today.

While emancipation became a wartime strategy — through the preliminary and final Emancipation Proclamations — the North was never deeply committed to Black rights. Even though 90% of free Black people lived in the North, most northern states denied them the right to vote, except in parts of New England. That lack of commitment made it easy for the North to abandon Reconstruction.

Racism was intertwined with the North’s goals of economic and territorial expansion. From the founding of the country, the Constitution was a compromise with slave states. And during and after the Civil War, the North prioritized building a strong industrial nation over securing rights for Black Americans.

After the war, the northern-led Congress shifted focus: federal troops were withdrawn from the South and redeployed westward against Native Americans, and later into cities to suppress labor movements. The income tax used to fund the war, one of the few progressive measures, was repealed, but massive federal spending continued for railroads and infrastructure. Freed people received almost no land, while railroads were granted millions of acres.

There are striking quotes from African Americans at the time, noting that there was nothing for them, but everything for the Union Pacific Railroad. That legacy still echoes in the structure of our politics and economy today.

LP: See any parallels between the historical use of federal troops to serve elite economic interests and what we’re witnessing today?

ME: Well, the movement of troops into Los Angeles or Portland or Chicago is not there for economic growth. It’s there because of an animus towards certain people. There are continuities and contradictions. During Reconstruction federal troops protected the freedpeople. Under Trump, the federal presence is directed against immigrants who do not have full citizenship, even if they have been in the country for decades, and are law-abiding, tax-payers with American-born children.

LP: Might that animus toward certain people ultimately serve the interests of the wealthy today?

ME: Good question. I actually see Trump as a departure from the economic strategies of both Democrats and Republicans before him. For decades, you could argue that much of what was happening, despite the problems, still tied back to promoting economic growth. But with Trump, that connection breaks down.

Take race, for example. I don’t think Trump’s policies on race or immigration actually further growth.

His tariffs, for instance, haven’t helped the economy. His aggressive stance on immigration has likely hurt it. Same with the direction of his tax policies. So unlike earlier periods, where elite interests and economic expansion were clearly linked, under Trump that link becomes much harder to see.

LP: So you think that the story of American growth and expansion is taking a turn?

ME: It has definitely taken a turn. I’m usually one of the first to look for economic motives behind foreign and domestic policy, and you can find them throughout much of U.S. history. If we’re talking about FDR, TR, or many other presidents, their actions often aligned with promoting economic growth and national power.

But with Trump, so much of what he does runs counter to that. His policies frequently contradict the very goals that would strengthen America economically.

LP: What about policies that may hurt the broader economy but may benefit a small, well-connected group? Some might point to crypto as an example.

ME: It certainly very much benefits the Trump family, and it’s part of this growing divergence between what’s good for the country economically and what benefits a small, wealthy segment of society.

Take a traditional company like General Motors. I’m in Canada, and as we Canadians know, auto parts and vehicles cross the border repeatedly — sometimes a dozen times back and forth during production. Trump’s policies hurt producers on both sides of the border. When tariffs raise the cost of aluminum and steel, they disrupt that flow and again hurt manufacturers.

CNN recently ran a series interviewing small business owners, and almost all of them said the tariffs are damaging. They can’t source materials affordably, and it’s hurting their bottom line.

Trump is a classic populist. He’s gained strong support from much of the working class and less wealthy Americans, by racial and ethnic appeals, but his actual policies hurt them and favor a narrow slice of the elite — another hallmark of populism.

Look at the Trump family — Kushner, for example. He’s not just over there working on Middle East brokering diplomatic deals; he’s also looking out for people like the Witkoffs and the Kushners themselves. It’s classic modern populism: broad working-class support, but real benefits flowing to a small group at the top.

LP: Is that really a break from U.S. history? Haven’t we seen cronyism before?

ME: We have seen cronyism before, no question. In the 19th century, for example, tariffs helped industrialists like Carnegie and supported the growth of key sectors like steel and railroads. So yes, there were favors and insider advantages.

But I think what’s different with Trump is the narrowness of the circle that benefits. It’s not about building a national industrial base — it’s about rewarding a small group of personal allies. You see it in who shows up at his inauguration, who gets access, who benefits. It feels less like national economic strategy and more like a private network of loyalists.

LP: Let’s talk more about who America’s story leaves behind, and what happens when they try to push forward. You discuss the Sheppard-Towner Act of 1921 — a kind of precursor to Social Security for women and children —that was labeled “socialist” and repealed by 1929. What does this reveal about the limits of social programs in U.S. politics, especially for women and families?

ME: The demise of that welfare measure reflects deep resistance to federal intervention, especially after the first Red Scare. Sheppard-Towner, which supported maternal health, was remarkably progressive for its time, but it triggered fears of “big government” — similar to the backlash we see today, backlash that is playing out in the government shutdown.

Social programs at every stage face pushback. We saw it with Truman’s push for universal healthcare, with the ACA, and even now, in debates over Medicaid expansion. And that resistance often has a racial and gendered dimension.

The divisions are deep and interconnected, cutting across race, gender, and region. Look at the 19th Amendment granting women the right to vote: Western states ratified it early, Southern states resisted. Today, many of the same states still haven’t expanded Medicaid, despite overwhelming federal support.

LP: You argue that white Christian identity is central to MAGA. Why do you see that as the core, rather than economic issues like job loss or globalization, which others emphasize?

ME: In 2016, Trump stood out, not for his economic policies, but for appealing to voters with strong anti-Black and anti-immigrant views. His base was energized by that rhetoric, unlike the tepid support for Cruz or Rubio.

Economic issues mattered, but they didn’t unify the MAGA base. Many who liked Obama’s economic policies weren’t drawn to Trump for that reason.

His message focused on building a wall, banning immigrants, and using inflammatory language. In 2024, economic issues were the frosting on the cake, and in the wake of the Biden inflation, it was a very tasty, attractive frosting. He strengthened and enlarged his support by offering simple solutions — cutting taxes, raising tariffs, and expelling immigrants. These policies don’t really work, but they spoke to people in economic pain. Their failure is now leading to a falling off in the support from independents.

Democrats, by contrast, have failed to address economic pain.

LP: Trump’s support among Black voters nearly doubled from 2016 to 2024. One survey showed 1 in 4 Black men under 50 backing him, and 9% of Obama voters switching to Trump. How do you explain that?

ME: It’s complex, but a key reason is that Democrats abandoned working-class voters, including Black and Hispanic men. In a telling interview I listened to during the 2024 campaign I heard a Las Vegas hotel worker say, “What do Democrats offer me? I can’t afford groceries or a home, and I don’t hear solutions.”

Even if Trump’s policies are BS, he spoke to their economic distress, something Democrats failed to do. For the first time, a majority of Hispanic men voted Republican, and more Black men shifted too, appealing to economic concerns.

LP: Why haven’t Democratic leaders connected with these economic issues?

ME: Since 1972, Democrats moved away from unions and working-class focus. That year’s convention set quotas for race and gender but ignored labor. Carter and Clinton pushed the party toward elites. Now, it’s a party of the wealthier third, mostly college-educated folks who often can’t relate to the working class. Bernie Sanders summed it up: “No wonder the working class abandoned us — we abandoned them.”

LP: There’s strong public support for Sanders-style economic basics, also reflected in backing for NYC mayoral candidate Mamdani’s affordability message. There’s also interest in Ezra Klein’s “abundance agenda,” focusing on growing the economy and expanding middle-class opportunities rather than just affordability. How do you see these two approaches from Democrats?

ME: I enjoy listening to Ezra Klein, but his abundance agenda mainly speaks to middle and upper-middle-class Democrats, counseling them to move away from NIMBYism and facilitate the construction of infrastructure and housing. To be sure, those are worthwhile goals. But they don’t address the deep inequalities that burden society. The real issues are growing inequality, persistent racism in education and healthcare, and tax breaks for the wealthy. More infrastructure projects won’t solve those.

LP: Are the affordability and abundance ideas mutually exclusive?

ME: No, but affordability tackles more fundamental problems. To win back working-class voters, Democrats need to focus there. Middle and upper-class progressives like Ezra Klein won’t disturb the wealthy, but progressives like Mamdani, who push for taxing billionaires, do. It’s disgraceful that Chuck Schumer and Hakeem Jeffries keep their distance from Mamdani, despite his broad appeal and ability to enlarge the Democratic electorate. I applaud those congressional leaders’ emphasis on Medicare and Medicate in this shutdown. It’s an important, but still a timid first step.

LP: What would going further look like?

ME: It would mean uniting behind housing, medical care, and other affordability issues that are important to 90% of the American population. It would mean not being content to run on a platform that simply says, “We are not Trump.” Note that the U.S. spends more per capita on health than any wealthy nation but has worse outcomes.

LP: What do you make of Trump’s current focus on drug prices, like the “most favored nation” rule and TrumpX website? His talk on this resonates with many people.

ME: It’s mostly bluster. He said similar things in 2016 and never followed through. Occasional populist talk from politicians disappears quickly.

LP: Do you think minimizing the role of economic power and wealth has blinded us to how politics really works?

ME: Absolutely. It causes many historian to embrace an optimistic, teleological view of progress that ignores ongoing inequalities. I want to be optimistic, but it overlooks present realities.

LP: There’s obviously an emotional component to myths— people want to take pride in their country and feel defensive when faced with harsh realities. How do you respond to that?

ME: There’s certainly a proud tradition of resistance in the U.S.: abolitionists, civil rights, the women’s movement, LGBTQ+ rights, labor — all have made real gains, though those gains face ongoing challenges.

Oppressive structures and resistance coexist. We remain a racist society, and a society where sexism is pervasive. Just look at the sewer of content that shows up on X, 4chan, and other social media platforms.

Still, no one should get so discouraged that they stop struggling. One way of looking at American history — and this would be a different book, but a plausible one — is to focus on how long and hard people have fought to make things better. In my book, you can see how powerful the forces are that have supported an oppressive status quo. But I’m optimistic in the sense that we have had these protest movements. People have done incredible things. Coalitions have pushed society and the economy toward more inclusivity. That gives me hope.

But yes, I’m realistic about how hard it is to hold on to those victories — how fierce and entrenched the opposition is.

LP: Yes. And we can never, ever take those victories for granted.

ME: We never can.

Print Friendly, PDF & Email

20 comments

  1. Andrew

    Good interview. Reminds me of Anatol Levin’s “America, Right or Wrong,” which also tackled the US’ myopic “synthesis” (i.e. liberal) and “anti-thesis” (i.e. reactionary) mythologies. I’ve been meaning to that one up again and review it vis a vis the Obama – Trump eras!

    Reply
  2. Alice X

    Some books that come to mind reading this:

    An Economic Interpretation of the Constitution of the United States – Charles A Beard

    Lies My Teacher Told Me – Everything Your American History Textbook Got Wrong – James W. Loewen [to say everything is a bit of a stretch]

    A People’s History of the United States – Howard Zinn

    The Invention of the White Race – Theodore W. Allen

    I don’t consider liberals as the left [admittedly, there aren’t many certifiable left anymore,so maybe the liberals will have to do].

    I think it is inconclusive that Lincoln actually supported the aborted first 13th amendment.

    My 2¢

    Reply
    1. Giovanni Barca

      Amen. May I add William Appleman Williams’ Enpire as a Way of Life?

      Why did so many insist on the adjective Christian for the MAGA identitarianism? The MAGA base goes well beyond Paula White. The lower-income rural Whites of the Great Lakes states have about the same rates of church attendance as the average Parisian or Manhattanite. Even my very Republican mid-South kin, nominally Baptists and megachurchers, wouldn’t know a Gospel verse from a Koranic sura. Unless “Christian” be a purely negative term, as in ‘Not Jewish/Muslim/Hindu/Rasta/Parsee…” I guess those who think they think outside the box don’t realize they’re still in the wrapper.

      Reply
      1. Andrew

        It’s a good question you’re posing! Possible explanations in my mind are the sheer psychotic-ness of the MAGA Evangelicals/Christians making up in intensity what they lack in relative representation? I can’t think of worse, fanatical freaks than Hegseth, Huckabee, Rubio, Vance, etc all in the positions of power they’re currently occupying. I think it was on the Trillbillies podcasts that the hosts were responding to some trump-prosperity gospel corruption that they posed “when, outside of maybe the crusades, have we had a more satanic incarnation of the church?”

        The other explanation is one of the Fox News/RW media-effect, propagandizing non-religious conservatives into caring about crap only RW Christians should. The persuasive anecdote I read on this was a person discussing the metamorphosis, via fox news, of their atheist, environmentalist, but libertarian mom into someone who eventually abandoned concern for the environment but also started caring DEEPLY about the supposed “persecution” of american christians by Obama, the US state, and abroad. I saw a similar transformation in my own atheist, libertarian FiL as he went further and further down the RW media hole this past 10 years. He never converted or anything, but the kinds of culture war stuff and public morals he seems to care more about now definitely have the reek of “things evangelicals are upset about.”

        Reply
        1. Andrew

          I should try explaining the fox news thing a bit better too: the argument was that fox was really, really good at hooking conservatives on one dimension of their conservatism, like religiosity, guns, racism, deregulation, etc, and then steadily getting them to adopt the rest of the approved GOP/conservative package. Hence non-religious conservatives eventually buying into christian identitatriansm. My trumper MiL is a crazy christian all by herself, but does not attend any church nor ascribe to any specific denomination that I can discern!

          Reply
          1. Redolent

            the demon at the helm is sucking the air from its patrons…the snare being the renunciation of probity…the simple narrative provides the relish

            the diametrical theology of autocracy

            Reply
    2. Alice X

      This is the 13th amendment of 1861. Lincoln did send it to the states (I still think it uncertain he actually supported it), Ohio and Maryland ratified it but it was too late (and a good thing that it was). Seven states had already seceded and therefore couldn’t ratify it, though in effect it would have given them what they wanted. There were so many moving parts that it is impossible to say.

      JOINT RESOLUTION TO AMEND THE CONSTITUTION
      OF THE UNITED STATES.

      Resolved, By the Senate and House of Representatives of the United States, of America in Congress assembled, that the following article be proposed to the Legislatures of the several States as an amendment to the Constitution of the United States, which, when ratified by three-fourths of said Legislatures, shall be valid, to all intents and purposes, as part of the said Constitution, viz:

      ARTICLE XIII.

      No amendment shall be made to the Constitution which will authorize or give to Congress the power to abolish or interfere, within any State, with the domestic institutions thereof, including that of persons held to labor or service by the laws of said State.

      WILLIAM PENNINGTON,
      Speaker of the House of Representatives.

      JOHN BRECKINRIDGE,
      Vice President of the United States, and
      President of the Senate.
      Approved March 2, 1861.

      JAMES BUCHANAN.

      Reply
      1. Alice X

        I shudder to imagine what polity we would have, had it been peacefully ratified. It was a wrenching of the Federal system. The history we have is still woeful. Still, we have a further (re) wrenching of the system to contend with.

        Reply
        1. Mike

          This whole slavery question, and its “resolution” by quite open revolts against federal controls in the South and the compromise of 1876, brings to mind Leon Trotsky’s theory of permanent revolution. If the federal government had used such a theory against the South, it would’ve been subjugated and cleansed of its KKK influence, the federal government purged of its compromisers, and trade with Britain would change to control those firms still interested in the lowest wage labor possible. Of course, this would entail a very radical government with some anti-capitalist features. Just as now, nah gonna happen.

          Reply
  3. Norton

    Present day American Democrats should revisit some party history. Some decades ago there were Yellow Dog Democrats, voting for party over candidate. That is playing out around the country as shown in polls.
    Will a Jay Jones or a Platner merit a vote no matter how odious, to preserve or maybe elsewhere to gain a seat?
    Or remaining silent when a Bernie Sanders gets shafted, or a Kamala Harris gets boosted?

    Reply
  4. ciroc

    I can confidently say that America will only get worse from here on out. Americans should abandon the illusion that voting or participating in protests can effect change. Like people in other countries with corrupt governments, Americans should emigrate while being American still holds value.

    Reply
    1. JP

      Well you say Americans should emigrate. So who would be left? But really which Americans? The 60% not currently circling the drain? I have considered emigration but what government is not corrupt? I always asked myself why the Jews did not get out of Germany when they could even if they had to walk. But we are not at that point and I am too old to learn Mandarin.

      Protest can effect change but it requires a critical mass. It is the object of propaganda and misinformation and the culture wars to keep us divided

      Reply
  5. Carolinian

    I think our blog host has given a more to the point explanation which is that the country’s chaotic state is not about morality–although more would certainly be welcome–than about inequality and the maldistribution of power. And that was the concern of the nowdays dissed founders who were trying to create a system where king-like absolute power was put in check.

    And so the recent anti-labor trend is about taking even more power away from the lower classes by sending their jobs overseas or replacing them with robots. Trump in this context is a fake populist unless one defines populism as talking the talk but not walking the walk. In reality he could care less about the working class except insofar as he sees them as culturally sympatetico to his own vulgarian nature. He ain’t got no ‘couth to quote a certain movie.

    Soak the rich I say and make it stick. Take away their money and you’ll be cutting Samson’s hair.

    Reply
  6. Boomheist

    We are a savage nation. One can draw a fully accurate yet dark picture as to just how savage we have always been. It seems that during some eras this truth is much more visible than others. Watching the Mandami and Platner crowds it seems there is a desperate hunger for some basic and real solutions and every single one means taxing the rich and stopping legal corruption. The recent enormous effort to spike Platner and kill his run tells us all we need to know. My guess and hope is he hangs in there. Just as Trump slayed the old school GOP so now Platner or his ilk need to slay the DNC and all obama and clinton…..

    Reply
    1. joesam

      Yes, a savage land, Joe Henry put it to song elegantly. With a bit of acceptance.

      This was my country
      And this was my song
      Somewhere in the middle there
      Though it started badly and it’s ending wrong

      This was my country
      This frightful and this angry land
      But it’s my right if the worst of it might still
      Somehow make me a better man.
      -joe henry “Our Song”

      Reply
    1. eg

      My immediate reaction precisely. Thomas Frank’s The People, NO: A Brief History of Anti-Populism is masterful on the topic.

      Reply
    2. Michael Fiorillo

      Agreed, and what were the CIO/mass mobilizations of the 1930’s if not Left/Populist uprisings that were harnessed by FDR into what we call the New Deal?

      The interviewee also made an unpleasant appeal to authority early on: all due respect to historians, but do we really need the academic trade associations to tell us that Trump’s historical analysis is wack?

      Reply
  7. Revenant

    I am unfamiliar with the interviewee except from this interview but he appears trapped in a dead worldview. Sure, the idealist view of US history is tripe and it was all about money and power. But implicit in all his historical perspectives on today is the axiom that the same liberal capitalism and American Progress should be resumed shortly, once the aberration that is Trump has gone.

    He seems incapable of perceiving what Trump is doing: taking a late-stage Empire, that is at or past its zenith and starting to decay, and circling the wagons and shrinking the Empire. Trump (and by that I mean the people alongside him, driving this project, as much as him, riding it) accepts that US hegemony is ending. The response is to create an external enemy, divide the world into post-globalist blocs and loot the vassals in the American bloc to maintain living standards in the Homeland.

    Tariffs and deportations are not about growth, they are about redistribution of a shrinking pie.

    It’s a tragic irony that historians, of all people, cannot perceive that America has reached that part of the rollercoaster where the long climb up has ended and she is over the top and on a wild ride!

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *