“以来 1960, our government has spent $ 5.1 兆. Our debt has grown by $ 648 十億. Prices have exploded by 178%. How much better off are we for all that? 上手, we all know we’re very much worse off. When we measure how harshly these years of inflation, lower productivity, and uncontrolled government growth have affected our lives, we know we must act and act now …
” … We can create the incentives which take advantage of the genius of our economic system — a system, as Walter Lippmann observed more than 40 数年前, which for the first time in history gave men “a way of producing wealth in which the good fortune of others multiplied their own.”
“Our aim is to increase our national wealth so all will have more, not just redistribute what we already have, which is just a sharing of scarcity. We can begin to reward hard work and risk-taking, by forcing this government to live within its means.”
, Congress had passed
— そして Reagan had signed
— a massive tax cut measure that drastically lowered the marginal tax rate for individuals
. The subsequent uptick in the economy
, which lasted throughout the 1980s
, was widely credited to
So pervasive was the belief that a small federal government — and tax cuts for the wealthy — was the recipe for economic success that Democratic President Bill Clinton declared that “the era of big government is over” in the mid-1990s as a way to signal to independents and Republicans that he understood that government was, if not インクルード enemy, より AN enemy.
: そうではありません at all clear that Reaganomics
, 上手, 働いた. As David Wessel
, a senior economics fellow at Brookings
, wrote in 2017
: “The Reagan tax cut was huge
. The top rate fell from
70 percent to
50 パーセント. The tax cut didn’t pay for itself
. According to later Treasury estimates
, it reduced federal revenues by about
9 percent in the first couple of years
. 実際には, most of the top Reagan administration officials didn’t think the tax cut would pay for itself
. They were counting on spending cuts to avoid blowing up the deficit
. But they never materialized.
Which is what makes what Biden said on Wednesday night matter so much. In the biggest speech of his (admittedly young) 大統領職, he stated, without hesitation, that Reaganomics never worked. That incentivizing the wealthy with tax cuts never trickled down. And that the way that you build a healthy economy is not top-down but bottom-up — and with a major assist from the federal government.
“It’s time to grow the economy from the bottom and the middle out,” Biden said directly after declaring trickle-down’s death.
It’s far more than just words for Biden
. The defining trait of the actions he has taken in his first
100 在職日数, as I noted earlier this month
, is a belief that government not only can solve problems for average people
, but must do so
Including the proposals outlined in Wednesday speech
, Biden has proposed $ 6 trillion in new spending by the federal government in his first
And he has done so unapologetically
. Touting the $ 2 trillion he wants Congress to approve in infrastructure spending
, Biden called it a
“once-in-a-generation investment in America
, unlike anything we’ve seen or done since we built the Interstate Highway System and the Space Race decades ago.
Biden’s belief is that the combination of Donald Trump’s presidency and the Covid-19 pandemic have reminded people that government isn’t a bad thing — and can be a very good thing. それ, confronted with the fragility of our well-being — economic, 物理的, メンタル — the idea of the government helping to build a social safety net will be appealing once again.
“We have to prove democracy still works,” Biden said in Wednesday speech. “That our government still works — and can deliver for the people.”
He has bet his presidency on just that idea.