Trump is history; Biden is changing America
While most of official Washington has been consumed with the Senate impeachment trial, another part of Washington is preparing the most far-ranging changes in American social policy in a generation.
Congress is moving ahead with President Joe Biden’s American Rescue Plan, which expands health care and unemployment benefits and contains one of the most ambitious efforts to reduce child poverty since the New Deal. Right behind it is Biden’s plan for infrastructure and jobs.
The juxtaposition of Donald Trump’s impeachment trial and Biden’s ambitious plans is no coincidence.
Trump’s acquittal has left the GOP fractured and defensive. The Republican Party is imploding. Since Jan. 6, growing numbers of Republicans have deserted it. State and county committees are becoming wackier by the day. Big business no longer has a home in the crackpot GOP.
All this has created a political void into which Democrats are stepping with far-reaching reforms.
They are now free to disregard conservative canards that have hobbled America’s ability to respond to public needs ever since Ronald Reagan convinced the nation that big government was the problem.
The first is the supposed omnipresent danger of inflation and the accompanying worry that public spending can easily overheat the economy.
But inflation hasn’t reared its head in years, not even in the roaring job market of 2018 and 2019. “Overheating” may no longer even be a problem for globalized, high-tech economies whose goods and services are so easily replaceable.
Biden’s ambitious plans are worth the small risk, in any event. If you hadn’t noticed, the American economy is becoming more unequal by the day. Bringing it to a boil may be the only way to lift the wages of the bottom half. The hope is that record low-interest rates and vast public spending generate enough demand that employers will need to raise wages to find the workers they need.
A few Democratic economists who should know better are sounding the false alarm about inflation, but Biden is wisely ignoring them. So should Democrats in Congress.
Another conservative bromide is that a larger national debt crowds out private investment and slows growth. This view hamstrung the Clinton and Obama administrations, as deficit hawks warned against public spending unaccompanied by tax increases to pay for it.
But Biden isn’t buying this, either. Four decades of chronic underemployment and stagnant wages have shown how important public spending is for sustained growth. Not incidentally, growth reduces the debt as a share of the overall economy. The real danger is the opposite: Fiscal austerity shrinks economies and causes national debts to grow in proportion.
The third canard is that generous safety nets discourage work.
Democratic presidents from Franklin D. Roosevelt to Lyndon Johnson sought to alleviate economic insecurity with broadbased relief. But after Reagan tied public assistance to racism — deriding singlemother “welfare queens” — conservatives began demanding stringent work requirements so that only the “truly deserving” received help. Bill Clinton and Barack Obama acquiesced to this nonsense.
Not Biden. His proposal would not only expand jobless benefits but also provide assistance to parents who are not working, thereby extending relief to 27 million children, including half of all Black and Latino children. Republican Sen. Mitt Romney of Utah has put forward a similar plan.
Tens of millions are hurting. A record number of American children are impoverished, according to the most recent Census data. The pandemic has caused a large number of women to drop out of the labor force to care for children. With financial help, some of them will be able to pay for child care and move back into paid work. After Canada enacted a national child allowance in 2006, employment rates for mothers increased. A decade later, when Canada increased its annual child allowance, its economy added jobs.
It’s still unclear what form Biden’s final plans will take as they work their way through Congress. He has razor-thin majorities in both chambers. Most of his proposals are designed for the current emergency; they would need to be made permanent.
But the stars are now better aligned for fundamental reform. It’s no small irony that a half-century after Reagan persuaded Americans that big government was the problem, Trump’s demise is liberating America from Reaganism — and letting the richest nation on earth give its people the social support they need.
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