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Trump left his party in tatters — and Biden is poised to change America

February 15, 2021 in Blogs

By Robert Reich’s Blog

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 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 Trump’s impeachment trial and Biden’s ambitious plans is no coincidence.

Trump left Republicans badly fractured and on the defensive. The Republican Party is imploding. Since January 6th, 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.

Republican infighting has created a political void into which Democrats are stepping with far-reaching reforms. Biden and the Democrats, who now control the White House and both houses of Congress, are responding boldly to the largest social and economic crisis since Great Depression.

Importantly, 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.

Rubbish. Inflation hasn’t reared its head in years, not even during 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. (I still have some old injuries …read more

Source: ALTERNET

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