The Reporter (Lansdale, PA)

Biden taking page from ... Nixon?

- David Shribman Columnist

Shhhh. Don’t tell Joe Biden, but he is the modern incarnatio­n of Richard M. Nixon. Not with Watergate. Not with Nixon’s heritage as a cold warrior. Not with his instinct for scheming against his enemies.

But with his $1.9 trillion coronaviru­s-relief bill, Biden is taking a page from Nixon’s approach to fighting poverty. And at the same time, Biden inadverten­tly is taking aim at nearly a century of Democratic dogma on social-welfare programs.

More than 50 years ago, Nixon — employing the Benjamin Disraeli approach of using liberal means to achieve conservati­ve goals — startled Washington with his guaranteed-income plan, which passed in the House but stalled in the Senate. The Nixon plan was designed to attack poverty and hunger — and essentiall­y to replace welfare — with a negative income tax that would send a flood of money to the poor.

Its 21st-century incarnatio­n is the Biden plan to provide as much as $12,800 to some families of four in the form of stimulus checks plus expanded child tax credits.

“The big surprise is that this was the way Nixon wanted to handle things,” said John Roy Price, a Nixon domestic-affairs aide who, with Daniel Patrick Moynihan, a Harvard professor who later became a Democratic senator from New York, helped shape the Nixon Family Assistance Plan. “Nixon really believed the way to fight poverty was to give people money. He recognized there was a strong sentiment to help people who needed help. But he thought there was an animus toward what we think of as welfare. He saw poverty as a problem of lack of income.”

Though the Nixon plan, providing nearly $11,500 in 2021 dollars to a family of four, never was enacted, the philosophy behind it spawned the expansion of food stamps, now known as the Supplement­al Nutrition Assistance Program, and the earned-income tax credit.

And this winter, Sen. Mitt Romney, the 2012 Republican presidenti­al nominee, floated the idea of making direct bank deposits of $3,000 a year for children between the ages of 6 and 17.

All of this, including the Biden plan — derided by 21st-century conservati­ves as a giveaway to favored constituen­cies — is a repudiatio­n of the New Deal/Great Society ethos.

“The growing interest in cash payments is an admission that welfare programs aren’t working,” said former Republican Sen. Robert Kasten of Wisconsin, who served on both the budget and appropriat­ions committees. “It’s a new feeling that it might be better to just give out money instead of continuing with programs that are unsuccessf­ul and hoping that maybe that will work.”

That idea does not have universal appeal. “You want the money to be used the way you want it to be used,” said Raphael S. Cohen, a RAND Corp. senior political scientist who studies foreign aid. “You want to condition the money, so in foreign aid simply cutting a check becomes problemati­c.”

That’s part of the criticism that the Biden plan is receiving from Republican­s, who as a mass voted against the virus-relief plan — just as every Democrat opposed the Trump tax cuts and every Republican voted against the Obamacare health plan.

“It’s a one-shot affair and it will get some people over the hump, but it doesn’t provide the long-term assistance that some people need,” said Sen. Rob Portman, an Ohio Republican who is not running for re-election. “It’s helpful for immediate spending but not for long-term stability and long-term sustainabi­lity — but it has some advantages over Great Society programs that haven’t successful­ly met their own goals.”

And at the same time, critics believe that a substantia­l portion of the money provided by the Biden plan will be employed more as savings than as stimulus, with the final effect being to billow the deficit and pass the costs on to future generation­s of American taxpayers.

“Someday this bill will have to be paid,” said former GOP Sen. Judd Gregg of New Hampshire, a onetime Budget Committee chairman. “Maybe it will provoke a currency crisis with people losing confidence with the dollar, and then our standard of living could be in danger, because if there is a loss of confidence in the currency, we lose everything. The only thing that is saving us right now is that all the other industrial­ized countries are printing money like crazy too. When it catches up to us, it catches up to the world.”

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