Given the long-term trends of the American economy, the Trump presidency is not the cause but a symptom of deep underlying maladies afflicting American politics.
In order to reverse the economic, political and social malaise caused by 40 years of neoliberalism, the US economy requires substantial reforms in areas ranging from taxation, public spending, and trade relations, to labour market regulations, and market concentration. If Biden makes the mistake of trying to turn back to pre-Trump ‘normalcy’ rather than paving the way for a different economic model, Trumpism, broadly construed, will live on with some very dangerous consequences. What American politics require is not a recovery in the strict sense of the word, but radical reform which will transform the American economy towards a more inclusive, egalitarian, and sustainable structure. History teaches us that unless the government acts quickly and radically to respond to the crisis, there will be a political reckoning, which may be uglier than even the last four years of American political life.Download the Discussion Paper