White House moves to reshape role of US capitalism

 

By Jonathan Easley,Brett Samuels and Amie Parnes, The Hill 

04/01/21

 

The White House is pushing an infrastructure bill that could reshape the discussion around capitalism as it seems to reestablish the federal government as a primary driver of how the economy should grow and function.

 

In addition to traditional infrastructure projects, Biden’s $2.25 trillion American Jobs Plan would make government investments in broadband, electric vehicles, climate change, elderly care, child benefits, housing and developing future technologies.

 

It would redefine classic infrastructure projects to include investments in workers and families paid for by tax hikes on corporations.

 

The ambitious proposal effectively transforms the relationship between the government and the private sector, making radical changes to key sectors of the economy that could be felt for years down the road.

 

It places a big bet on the ability of the federal government to drive sustained economic growth at a time when confidence in institutions is low...

 

more, including links 

https://thehill.com/homenews/administration/545836-white-house-moves-to-reshape-role-of-us-capitalism

 

 

Behind Biden’s Big Plans: Belief That Government Can Drive Growth

Multitrillion-dollar spending program would reverse Reagan-era tacit understanding that public sector is less efficient than the private in allocating resources

 

 By Jacob M. Schlessinger and Andrew Restuccia, The Wall Street Journal (WSJ)

March 30, 2021

 

WASHINGTON—President Biden envisions long-term federal spending claiming its biggest share of the American economy in decades. He wants to pay for that program in part by charging the highest-earning Americans the biggest tax rates they’ve faced in years.

 

The Biden economic team’s ambitions go beyond size to scope. The centerpiece of their program—a multitrillion-dollar proposal to be rolled out starting Wednesday, less than a month after a $1.9 trillion stimulus—seeks to give Washington a new commercial role in matters ranging from charging stations for electric vehicles to child care, and more responsibility for underwriting education, incomes and higher-paying jobs.

 

The administration has also laid the groundwork for regulations aimed at empowering labor unions, restricting big businesses from dominating their markets and prodding banks to lend more to minorities and less for fossil-fuel projects. All while federal debt is currently at a level not seen since World War II.

 

It all marks a major turning point for economic policy. The gamble underlying the agenda is a belief that government can be a primary driver for growth. It’s an attempt to recalibrate assumptions that have shaped economic policy of both parties since the 1980s: that the public sector is inherently less efficient than the private, and bureaucrats should generally defer to markets.

 

The administration’s sweeping plans reflect a calculation that “the risk of doing too little outweighs the risk of doing too much,” said White House National Economic Council Director Brian Deese. “We’re going to be unapologetic about that,” he said. “Government must be a powerful force for good in the lives of Americans.”

 

more, with subscription

https://www.wsj.com/articles/behind-bidens-big-plans-belief-that-government-can-drive-growth-11617118656