Biden’s Economic Plan: A Paradigm Change in American Economic Policy?

With the Biden administration, the “defeatist view” that governments cannot counter the forces of automation and globalisation may be tested.

With Biden’s election, the US appears to have entered a new phase in its political history. President Biden is promising a paradigm change in economic policymaking and a deep transformation of the American economy. The Biden administration wants the state to play an increased role in the economy with higher taxes on corporations, more spending on infrastructure and key industries, as well as better and more inclusive services. This new policy paradigm aims to create jobs for millions of Americans and put an end to the decades-long trend of rising inequality in the US. Moreover, it promises to more effectively combat climate change and increase American industrial competitiveness vis-à-vis China. However, American economy’s long-standing problems may have deeper causes than government policies, namely globalisation and automation. With the Biden administration, the “defeatist view” that governments cannot counter the forces of automation and globalisation may be tested.