One theme of the early Biden administration is that
the dragon of deficit hawkery has been slayed. No longer will Democrats combat on an unlevel playing field, constantly trimming their sails while Republicans have no problem with running up deficits. This is how we’ve led ourselves into an incredibly low tax burden and the lowest public investment in decades, based mostly on the priorities of the two parties and the willingness to execute them.
Now, the theory goes, the Democratic Party has learned and the leadership is implementing real and substantive policy and shrugging off the likes of Larry Summers and those who would hold back progress. It wasn’t lost on me that this was based entirely on one bill in an emergency. The American Rescue Plan is a significant achievement but it’s temporary, with most of
its measures expiring within a year or two. There would be opportunities to extend them, but we’d have to see something more lasting to really judge if the neoliberal mindset had finally been shoved aside.
The promise of a large-scale infrastructure bill could settle the question. And the early chatter, about a bill with a broad conception of infrastructure, incorporating surface transportation like roads and bridges but also broadband, electrical grids, energy-efficient housing, and the care infrastructure that allows families to live and work, was incredibly energizing. The Biden administration was talking about $3 trillion in investment, and the party’s most right-leaning member, Joe Manchin, was talking about $4 trillion.
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