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President Joe Biden takes questions from reporters as he speaks about the American Rescue Plan, in the State Dining Room of the White House on Wednesday. Is a major change in economic philosophy coming to Washington?
Joe Biden is proposing a set of programs that could fundamentally alter the government’s role in the economy. If his proposals become law, there will be a reversal of the last 40 years, where government focused on lowering business and individual taxes, while limiting investment in major infrastructure and social programs.
Instead, we will have a government willing to spend money and raise taxes to rebuild, restructure and rebalance the economy.
During the Great Depression, Franklin Roosevelt ushered in an era of government involvement in economic and social programs that spanned decades. Future Democratic and Republican presidents either followed or expanded many of the programs. It wasn’t just Lyndon Johnson’s “Great Society.” Dwight Eisenhower increased Social Security; the Environmental Protection Agency was created during Richard Nixon’s presidency; and George W. Bush massively expanded Medicare prescription costs.
The 1980 election of Ronald Reagan began a shift. Reagan pushed to lower taxes and reduce the government’s role. Yes, he expanded spending, the budget deficit increased during his time […]