Tag Archives: economic policies

Will It Work?

I have previously made the point that solving our social and political animosities requires an accurate diagnosis of their causes–or at the very least, recognition of the elements of contemporary life that are feeding those animosities.

If, as many sociologists and political scientists believe, the roots of much contemporary discord can be found in the economic inequality that characterizes today’s U.S.–if that inequality provides the fertile soil for the racism and tribalism that are tearing us apart–then efforts to address economic insecurity should substantially ameliorate that discord. 

In one of her daily Letters from an American, Heather Cox Richardson assumes the accuracy of that diagnosis, and notes that the Biden Administration is pursuing policies that should  mitigate some of the worst of our current economic disparities:

Trump and his loyalists feed off Americans who have been dispossessed economically since the Reagan revolution that began in 1981 started the massive redistribution of wealth upward. Those disaffected people, slipping away from the secure middle-class life their parents lived, are the natural supporters of authoritarians who assure them their problems come not from the systems leaders have put in place, but rather from Black people, people of color, and feminist women.

President Joe Biden appears to be trying to combat this dangerous dynamic not by trying to peel disaffected Americans away from Trump and his party by arguing against the former president, but by reducing the pressure on those who support him.

A study from the Niskanen Center think tank shows that the expanded Child Tax Credit, which last month began to put up to $300 per child per month into the bank accounts of most U.S. households with children, will primarily benefit rural Americans and will give a disproportionately large relative boost to their local economies. According to the Washington Post’s Greg Sargent, “the…nine states that will gain the most per capita from the expanded child allowance are all red states.”

Other elements of administration policy should also be ameliorative: the infrastructure bill will bring high-speed internet to every household in the U.S.; it will also provide $3.5 billion intended to reduce energy costs for more than 700,000 low-income households.

Richardson is a historian, and history teaches us that economic distress has often provided an impetus for the surfacing of bigotries that folks are less likely to express in more prosperous times. A number of scholars, for example, have pointed to Germany’s runaway inflation–and national humiliation–in the wake of World War I as one reason for the country’s receptivity to Nazism and willingness to express long-simmering anti-Semitism, and more recent academic literature supports the thesis that that economic scarcity promotes racial animus. 

As an article in Time Magazine reported, numerous studies have demonstrated that economic scarcity influences how people treat those outside of their own social groups. (There is also a “chicken and egg” element to the relationship between economic anxiety and racism–a column in the Washington Post reported on one study that suggested racial resentment may be driving economic anxiety, not the other way around.)

Democrats often bewail the tendency of low-income voters to cast ballots “against their own interests”–a complaint that assumes (I believe incorrectly) that those interests are economic rather than cultural. A somewhat different but related question is whether a significant improvement in the economic situation of low-income Americans will “take the edge off” and moderate the expression of their cultural fears.

The Biden Administration’s policies will go a long way toward answering that question–and America’s future is riding on the result.