Chapter 403
Translator: crow
Chapter Title: Protectionism
Before the LA riots erupted, in early 1992, the United States was entering the presidential election season.
The George Bush administration, facing its second election, viewed the situation pessimistically.
The prolonged Haiti issue and the backlash from tax increases were to blame.
"At this rate, we can't guarantee victory in the general election."
Even passing the primaries within the party looked dicey, let alone facing off against the Democrats.
Pat Buchanan, a Republican primary contender, was closing in on George Bush neck and neck with his surging momentum.
"Pat Buchanan will inevitably falter due to his funding limitations."
Pat Buchanan was a politician with no elected experience.
What solid foundation could a politician who rose purely on image possibly have?
No organization meant no money.
The White House believed they could beat Buchanan, but the real issue wasn't victory itself.
They had to win the primaries by a landslide.
Only then could they ride the momentum straight to the general election.
While the George Bush administration agonized over how to clinch the primaries, Korea was quietly funneling support to Buchanan through back channels.
"If he's short on money, we'll just provide it."
The reason Korea backed Buchanan was straightforward.
"We need to amplify the voice of protectionism."
Pyongyang wanted protectionist voices in America to grow louder.
"Boosting protectionists? If America closes its doors, won't Korea suffer?"
Korea was raking in massive profits from the U.S. market.
Supporting anything that cut off that revenue stream was like chopping off your own foot with an axe.
"In the short term, yes."
There might be temporary losses for Korea, but Pyongyang figured they could weather it.
Core B2B products like semiconductors couldn't be severed no matter what America tried.
Blocking some consumer goods and intermediate materials wouldn't be a fatal blow.
"That's exactly why we need them to build those walls—it'll shrink America's share of the global market."
In the long run, Korea aimed to claim America's position as the ultimate consumer market.
Only then could Korea ascend to true number-one status.
That was why Pyongyang was backing Pat Buchanan.
Korea laundered funds through the intelligence agency's circuits and funneled them to Buchanan's primary campaign.
Pyongyang's covert aid gave Buchanan tremendous strength.
"Increase the volunteers and book more ads."
Buchanan aggressively deployed the boosted primary funds.
But for Buchanan to win, money alone wasn't enough.
He needed an image.
To propel Buchanan to victory, Korea decided to push one particular meme.
"Nothing spreads like a good joke."
Pyongyang opted to promote the George Bush dementia meme.
"Your Excellency, President. Pyongyang has requested a summit on the German issue."
"Time to fly to Potsdam. Contact Prime Minister Lee Seong-jun."
Korea spread such memes through the tabloid press.
It was absurd on any real reflection, but people found the jokes amusing.
As the intelligence agency's machinations spread the Bush dementia meme, Americans suddenly became conscious of the president's age.
"Isn't George Bush too old to run for president again?"
The White House was aware of the meme.
Still, they dismissed it lightly.
"I'll show them I'm still vigorous—no problem there."
George Bush figured projecting strength would make it fade away.
But once lodged in people's minds, such perceptions didn't vanish easily.
Spotting Bush's age as a weakness, Buchanan swiftly turned it into an attack line.
"What did George Bush promise the nation when he was elected? No new taxes. Yet four years later, taxes are inexplicably rising. How can we trust an old man who forgets his own pledges?"
Those already upset with Bush's tax hikes latched onto the new dementia meme and hammered the White House.
"A demented guy has no business being president. Step aside now."
With things escalating, the White House couldn't stay silent.
"Pat Buchanan is a thug who doesn't know the basic decencies of politics. Has our party fallen so low that we'd put that man forward as its face?"
Despite the White House counterattacks, Buchanan's support kept climbing.
The peak came in the New Hampshire primary.
There, Buchanan pulled over 45% of the vote, utterly humiliating the incumbent president George Bush.
"America first! America first!"
The protectionists rode the wave, raising their voices higher.
Of course, Buchanan winning the nomination was a pipe dream.
After New Hampshire, he suffered a string of losses to Bush and crumbled in the primaries.
Yet pulling over 30% against a sitting president was victory enough.
Addressing his supporters, Buchanan declared:
"We lost, but we won."
As he said, the protectionists had fully demonstrated their power.
Korea pulled the same stunt in the Democratic camp too.
"Support former California Governor Jerry Brown."
He too was a staunch protectionist.
Korea gladly donated to Governor Brown as well.
In the cash-strapped early primaries, this aid was like rain in a drought.
Flush with Korean funds, Brown charged ahead.
One extra ad spot or TV second translated to pumped-up poll numbers.
U.S. intelligence spotted the suspicious foreign money flows but never traced it to Korea.
"Why would Korea back protectionists? It defies common sense."
The agencies assumed it was domestic companies laundering funds indirectly.
At this 'current stage,' anyway.
Korea exploited America's complacency, steadily ramping up aid to Brown.
The more Senator Jerry Brown surged, the more protectionist sentiments echoed within the Democrats.
Soon, talk like this emerged:
"We'll impose additional tariffs on any country running a trade surplus with the U.S. over $10 billion."
Forcing trade balance adjustments.
Protectionists cheered wildly.
Bill Clinton couldn't lag behind the mood.
To catch Brown, he rolled out his own protectionist pledges.
"For countries running trade surpluses over $10 billion with the U.S., we'll demand improvements—and if unmet, erect tariff barriers."
Overnight, protectionism dominated the Democrats.
"No need for us to keep pushing now."
Korea scaled back funding to Brown and stepped aside.
Without the fundraising edge, Brown was quickly overtaken by Clinton.
"Huh? Why has my fundraising pace dropped off like this?"
Brown fought hard, but he couldn't match Clinton's mass appeal and silver tongue.
"Clinton! Clinton!"
By the time Clinton locked in the Democratic nomination, the Republicans were in despair.
"We've lost this election."
The Bush administration was already drained from the Haiti quagmire and the image hits from the primaries.
Then the LA riots piled on.
Beating a Clinton who'd surged on that primary momentum was near impossible.
In several TV debates, Clinton skewered Bush with deft rhetoric.
"How do you rebuild the economy without protectionism?"
"The era is globalization. Resist the tide, and we can't beat competitors like Korea."
Of course, Clinton knew Bush's argument was right.
But politicians couldn't flip positions easily.
Having staked out protectionism, Clinton had to run with it.
And protectionism wasn't entirely wrong.
'This structure where Korea endlessly sucks up surpluses isn't right.'
To fix America's twin deficits (trade and fiscal), protectionism was a necessary evil.
Clinton sank Bush with one line.
"It's about jobs, you fool."
Coastal workers roared in agreement.
"Damn right. Our home market's getting gutted—what kind of bullshit globalization is this?"
Since Clinton pushed protectionism, he never dared mention expanding FTA or economic unions.
"Then how do we stand against that massive EA and its allies?"
If America went protectionist, its First World allies sucking up Washington sweeteners would inevitably waver.
"We save our economy first, and it'll sort itself out."
Clinton didn't plan to push protectionism that hard.
He'd made the pledges, so he'd go through the motions.
And target Korea as the main villain.
That was Clinton's calculus—but he'd overlooked one thing.
"Once First World nations taste a protectionist regime, will they trust it like before?"
Hardly.
With protectionism's door cracked open, they'd hedge against the 'what if.'
And there was only one other ship for them to straddle.
Korea.
Pyongyang had drawn this picture, backing protectionists in both parties.
To make protectionist sentiment seem dominant in America.
"But what guarantee do we have this assumption becomes reality?"
"No, it will."
Bae Seong-jun was confident.
In the original timeline, when America cried protectionism, Europe—Germany—rushed to China, bowing to disrupt the First World's united front.
Even an unappealing China could rattle First World ranks just by championing free trade.
How much more so for Korea, number one globally when combining EA?
Add Second and Third Worlds, and it surpassed the entire First World economy.
A nation like that was bound to be America's alternative.
EA's domestic market alone could more than replace America's.
Sure, Korea wasn't a pure consumer like America—it churned out vast goods too.
But a nation's character could be reshaped.
No matter the cost, seizing the world's reserve currency throne made any losses bearable.
Pyongyang took its first step to usurp America's throne.