After decades of politicians pushing tax cuts for the wealthy and embracing trickle-down economics, President Biden is paving the way to a new era of economics.

In his State of the Union address this year, President Biden promised the country he would build the economy from “the bottom up and the middle out, not from the top down.” In other words, he would pass policies that strengthen the middle and working classes, giving Americans more money to stimulate their local economies and growing the economy for everyone. It’s an economic theory that Nick Hanauer, our founder, has been promoting for years.

Over the last year, President Biden stuck to his middle-out agenda by signing the CHIPS Act to create American manufacturing jobs, passing the Inflation Reduction Act to invest in working Americans, and launching a plan to forgive up to $20,000 of student loans for each borrower. And, when Democrats championed this economic message in the midterms, they enjoyed big victories in a tough political environment.

In 2022, we also saw a huge spike in workers organizing for higher pay, increased benefits, and better working conditions. Grocery workers in California won huge raises, an Amazon warehouse unionized for the first time, and Americans’ approval of unions reached its highest rate since 1965.

Of course, these positive stories are only part of the picture. In 2022, CEO pay also increased by $2 million compared to last year and hit record heights – all while Americans still struggle to pay for groceries and other necessities due to record price increases. It’s not inflation – it’s “greedflation” because it’s driven by greedy corporations taking advantage of economic challenges to jack up prices and pad their profits. While inflation declined last month, corporate greed is an ongoing problem that will require bold new solutions in 2023.

There's more to be done to build a better, more inclusive economy in the new year. But if we keep growing the economy from the middle out, we know we can leave trickle-down economics in the past for good.

Thanks for being part of this team.

– Civic Action