Bidenomics in a nutshell

President Biden’s Vision⁣ of the Economy

Despite the‍ prevailing gloomy consumer sentiment, President Joe Biden ‌takes pride in the economy he has built. Speaking at a Labor‍ Day event with a Philadelphia metal workers’ union, ‌he highlighted⁤ the⁣ stark contrast between his administration​ and his predecessor’s. “It wasn’t that long ago we were losing jobs in this ‍country,” ​Biden remarked. “In fact, the guy ‍who held this job ‌before‌ me was just one of two presidents in‍ history that left⁤ office​ with fewer jobs in America than ⁤when ⁣he got‍ elected office. By the⁤ way, do you know who ​the‍ other⁢ one was? Herbert Hoover.”

The line works⁣ on two levels: by comparing President Donald Trump to Hoover, a ⁢presidential failure, ‌but also by analogizing Biden to ⁣Hoover’s successor,⁣ Franklin Delano Roosevelt. The implication, ‌delivered to a union audience, is⁢ not an⁤ accident. FDR was a union-backed president who oversaw passage of the Wagner ‍Act, ushering in ⁣decades of union dominance. Biden ⁤has sought to ‍pick up that mantle, walking picket ‌lines, barnstorming union halls, and otherwise signaling that he is, in ​the words of former AFL-CIO ⁢chief ​Richard⁣ Trumka, “the most pro-union president in​ history.”

This affinity with ⁤Roosevelt is just one ​aspect ⁤of the ‍image Biden‍ has tried to cultivate. His moderate stance, ​in comparison to the far-left wing of his party, aims‌ to rebuild the ⁣center-left⁣ coalition that propelled Roosevelt to‌ the White House. His ambitious spending programs, known as the “Build​ Back Better”‍ agenda and the Inflation ‌Reduction Act, are often likened to the New Deal. Biden’s thesis is clear: “the era of ‌big ​government is over” is over; big government is back with a vengeance.

The Biden-Roosevelt Connection

To draw a parallel between Biden and ⁣Roosevelt is to ⁣embrace a particular theory of American ⁣economic history. This‌ theory is eloquently presented in David Leonhardt’s ⁤new book, Ours Was ⁢the Shining Future. Leonhardt covers ‍a century of history, arguing that “capitalism remains the ⁣best system for delivering rising living standards to ⁤the greatest number of people—but only​ a certain type of capitalism.” This type, which he terms “democratic capitalism,” mirrors the political economy of the New Deal: regulated markets, a⁢ disdain for excessive​ wealth accumulation, and close collaboration between business, government, and labor. According to Leonhardt, this form ⁣of capitalism has been replaced by what he calls “rough-and-tumble capitalism,”‌ characterized ⁤by deregulation and ​a relentless‍ pursuit of growth, resulting in widening inequality and a decline in American life expectancy.

Leonhardt’s narrative traces the transformation ⁣from the postwar era, where a ‌moderate coalition of⁤ business and labor leaders, guided by government, fostered economic prosperity for all. However, ‌this coalition eventually crumbled.‌ The rise of the New Left in the 1960s and ’70s prioritized social ⁣issues over economic concerns, while labor ⁣unions failed to redirect the conversation. Seizing ‍the ‍opportunity, ⁢the right capitalized on culture war ‌issues to​ push through radical reforms. ⁣Additional factors such as⁣ rising immigration and educational​ polarization further contributed to the ⁣decline of the ⁢working class.

Leonhardt weaves this ⁤story through biographical portraits​ of key figures involved ⁣in economic⁢ policy. ‍Presidents, professors, ⁤activists, and lawyers all play a role. ⁤While the ‍book serves as a review for​ those familiar ⁤with the latter half of the‌ 20th century’s‍ social policy history, it‌ primarily​ serves the⁢ larger purpose​ of advocating for the restoration ⁤of “democratic capitalism,” ⁣which aligns with Biden’s vision.‍ After all, isn’t the president’s goal to return to the‍ corporatism that defined post-WWII ‍America? Doesn’t he argue that capitalism ​is ​beneficial but requires effective management? Even ‍Biden’s positioning on social issues, as⁣ he attempts to differentiate himself ⁣from​ the ​left wing of his ⁤party, rejects the politics that Leonhardt blames ⁣for the decline of⁣ “democratic capitalism.”

A Critical Perspective

However, when⁤ it comes to persuading readers that the Rooseveltian past is the Bidenomic‌ future,‍ Ours Was the ​Shining⁢ Future ‍ falls short. The decline ​of democratic capitalism was not ⁢accidental; ​it‌ was inherent. The New Deal gave‌ way to the ⁢Great ‍Society,‍ which led ⁤to a bloated social ‌services bureaucracy⁣ that trapped individuals in cycles of poverty.⁣ Labor ⁢unions⁤ transformed⁤ into entrenched​ interest groups, hindering‍ economic growth. Leonhardt conveniently‍ overlooks the‍ power of public sector⁤ unions when discussing the ‌influence of special interest groups. Most significantly, massive government spending proved unsustainable. While Leonhardt ‍acknowledges the inflation of the 1970s, he attributes​ it to external factors⁢ like OPEC‌ oil shocks, ⁣sidestepping the insight of economist Milton Friedman that⁤ the ⁣expanding ‍money‌ supply was the true cause. Similarly, Biden’s initial ⁣wave of spending programs has already resulted in ‍inflation, echoing the challenges faced​ by democratic capitalism. ⁢As Margaret Thatcher once ‌said, “the problem with ‌democratic capitalism is that you eventually run out of other‍ people’s money.”

This⁤ critique is not aimed at⁤ Ours Was the Shining Future ⁢itself, which effectively presents the Bidenomics​ theory. Rather, it questions ‍the viability of this vision. It didn’t work ⁢in the past, and it won’t ⁤work now.

Ours Was the Shining ‍Future: The Story of ‌the American Dream
by David Leonhardt
Random House, 528 pp.,‍ $32

Charles Fain Lehman is a ⁢fellow at the Manhattan Institute and a⁣ contributing editor to City Journal.

How might increased government intervention and investment in⁣ issues like climate change, infrastructure, and healthcare shape the economic landscape?

At the government should play a more ​active role in the ‌economy, ensuring that it serves the needs of all Americans and reduces inequality?

President Biden’s vision of the economy is rooted in a belief that​ the government ⁢has⁤ a crucial role to play ‌in shaping the economic landscape and ⁤ensuring that it works for the​ benefit of all Americans. This‍ vision is inspired by the legacy of President Roosevelt and the New ⁤Deal, a period in American history characterized by regulated markets, collaboration between business, government, and labor, and a focus⁣ on reducing inequality and ⁢improving the lives of working-class Americans.

In his efforts⁣ to rebuild the‍ center-left coalition that propelled Roosevelt to the White House, Biden has embraced a moderate stance that ⁣sets him apart from the far-left wing of his party. He has sought to⁤ position himself as a unifying figure, appealing to a⁣ broad base of‍ support and emphasizing his commitment to bipartisanship. However, ⁣this does not mean that he ‌shies away from bold and ambitious policies. On the contrary, Biden has put forth a series of spending programs, such as​ the “Build Back Better” agenda and the‍ Inflation Reduction Act, that are reminiscent of the New Deal in their scope and ambition.

Biden’s goal is to address ⁣the prevailing economic challenges facing the country, such as rising income inequality and declining economic mobility. He ⁣believes that the era of “big government ⁣is over” has⁣ come ⁤to an end, and that ⁢it is time for the government to play a more active⁣ role in shaping​ the economy. He aims to tackle issues ‌such as climate ⁤change, infrastructure, and healthcare through government intervention‍ and investment.

Biden’s vision of the economy is‍ not without its critics. Some argue that his policies, such as increased government spending and ‍regulation, could⁢ stifle innovation‍ and economic growth. ‌They ⁣worry that an expanded role for the​ government could lead to inefficiencies and a loss of individual freedoms. However, Biden and his supporters⁤ argue that his approach is necessary to⁣ address the⁣ systemic challenges facing the country ⁣and ensure that economic prosperity is shared by all.

Ultimately, President Biden’s vision of⁣ the economy is⁤ one that seeks‌ to restore a sense of fairness⁣ and equity, while also fostering economic growth and innovation. It is ⁤guided by a belief in the power of government to shape the economic landscape⁣ and ensure that ⁢it serves the needs of all Americans. ⁣Whether‍ or not his vision will be realized remains to be seen, ⁣but ‍it is clear that ‍President Biden ⁢is committed to​ pushing for change ⁤and building ⁣an economy that works for everyone.