Democrats all agree that Biden was able to give in more stimulus dollars than Barack Obama. What will make a lasting difference, however, is whether the Biden incentive will not only save the poor, but will also encourage the private sector to start new businesses and create more good jobs that will improve productivity and sustainably raise living standards, so that it is not just us who share the cake anew, but also let the cake grow.
Opinion debate
What should the Biden administration prioritize?
- Nicholas KristofThe opinion columnist writes: “Biden’s proposal to set up a national pre-K and childcare system would be a big step forward for children and working parents.”
- The editorial office argues the president should address a tax system in which “most wage earners pay their fair share, while many entrepreneurs commit blatant fraud at public expense”.
- Veronica escobarOne El Paso Democrat writes: “The real crisis is not at the border, but outside the border. Until we address this crisis, this stream of vulnerable people seeking help on our doorstep will not end.”
- Gail CollinsThe opinion columnist has a couple of questions about gun violence: “What about the gun control bills? The other is what about the filibuster? Do all Republicans know that? ”
Despite fears that the $ 1.9 trillion could push interest rates to levels that fuel the stock market and limit government borrowing and discretionary spending in the future, there are many signs that we are heading for such Entrepreneurship explosion.
Consider this report from the Wall Street Journal on Friday: “After a year of economic stalemate and other changes from Covid-19, rents for storefronts, apartments and workspaces in Manhattan have dropped to the lowest prices in years. This is already bringing in new small businesses and residents and has the potential to change the character of the city’s most exclusive district. … New York State last year launched the highest number of new companies since 2007. “
If we get this right, Biden’s incentive will fuel and fuel an already restructured economy. With so much cheap money, so much cheap access to powerful computers, so many new services being digitized, and so many new problems to be solved, we have all the ingredients for an outbreak of innovation, startups, and creative destruction .
What would Trump do if he headed such a boom? He would put his name on it. That’s what Biden should do. When it comes to it, call it the “Biden Boom” – and celebrate entrepreneurs, capitalists, job makers, farmers and anyone who works with their hands. Make it clear that they all have a home in the Democratic Party, not just left-wing elites. This is how you win the split times.
Biden must also maximize his green aspirations. It’s not just about freeing up expenses. It’s also about unleashing capitalism. The key to a green revolution is scaling. You need a lot of everything – wind, sun, water, nuclear power, batteries, efficient materials. The only way to get this scale is to capitalize on the market – by setting up all kinds of public-private partnerships that reduce carbon emissions and increase profits.
The government can catalyze this in two ways. The first is to use their purchasing power to cut costs. For example, “offshore wind used to be much more expensive than onshore wind,” explained Hal Harvey, CEO of Energy Innovation, “but then the UK and Danish governments stepped in to subsidize it and down the cost-volume curve to move. Now it’s a huge and inexpensive resource. “
