Former Indiana Gov. Mitch Daniels said he thinks Vice President JD Vance and other Republicans are wrong to move away from the party’s traditional embrace of free-market economics — and that their shift could create an opening for a “pro-freedom” movement.

“I think they are in error,” Daniels said in an interview when asked about Vance’s criticism of economist Milton Friedman, who championed free-market capitalism.

“I think what Vance is saying is that there are aspects to the free market which can be disruptive of culture and tradition. I mean, that’s what the free market does. It’s dynamic,” he told POLITICO. “It’s the only mechanism, in my view, for preserving the American dream, and that’s the most important element of our culture.”

The vice president’s intra-party critics have argued that Vance has been moving away from free-market economics and toward a larger role for the government in shaping the economy in his defense of the Trump administration’s economic policies, especially its wide-ranging tariffs.

“What the president is doing is changing 40 years of a failed bipartisan consensus in Washington, D.C., that has sold out American workers and destroyed the underlying economic strength of the United States of America,” Vance said in a Fox News interview last year.

The move is seen by some as Vance testing a more populist and protectionist message as he eyes the Republican presidential nomination in 2028.

But the two men were at one point closer politically. In Vance’s bestseller „Hillbilly Elegy,” Vance described Daniels as his “political hero.” Daniels has said that Vance sought his counsel on running for office in 2018 and Daniels advised against it because it was likely to be a bad year for Republicans.

The vice president’s office did not immediately respond to a request for comment on Daniels’ remarks.

Daniels recently released his new book, “Impatience Is a Virtue.” In it, the veteran of Indiana politics — who also led the Office of Management and Budget under President George W. Bush — detailed his career championing the free market.

Daniels told POLITICO that President Donald Trump was both a “symptom” and “a propellant” of voters’ discontent, pointing to their “feeling of being patronized, condescended, looked down on, ignored, disrespected.” And Trump’s political success came from his ability to unite and represent these discontented voters.

Still, Daniels argued the evolution of the Republican Party under Trump has created room for a “pro-freedom party” that champions economic freedom and individual autonomy.

“Whether that is the next iteration of this Republican Party or you find some other vehicle, I don’t know,” he said. “But I think that there’s a need, and as I say, there’s certainly, I think, a market for that viewpoint waiting to be expressed by somebody.”

The former governor, now back at Purdue University as the interim president after leading the school for a decade until 2022, sidestepped a question about his party identification and another one on whether he sees Vance emerging as the “pro-freedom” candidate.

“It’s all TBD; I don’t know,” he said of Vance.

Daniels also defended his view on another 2028 hopeful, Democrat Pete Buttigieg, who was the mayor of South Bend, Indiana, during the tail end of Daniels’ governorship.

In his book, Daniels said Buttigieg is smart, but his principal asset that excites Democratic activists is his sexual identity.

Buttigieg became the first openly gay person confirmed to be a Cabinet secretary when he was tapped to lead then-President Joe Biden’s Transportation Department. A spokesperson did not immediately respond to a request for comment.

“This differentiates him in a way that would be appealing to large portions of the core Democratic electorate,” he said. “Absent that, he would be a less likely national figure.”

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