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    What is ‘abundance’ liberalism, and why are people arguing about it?

    Is progressive public policy in America broken? Do many left-leaning laws actually make life more expensive for struggling people? Is regulatory red tape hindering growth and innovation? Have Democratic-run cities, such as New York and San Francisco, become giant billboards against liberal governance?These arguments wouldn’t sound out of place in a policy paper from a conservative thinktank. Yet their newest champions are two of America’s best-known left-leaning journalists, the New York Times’ Ezra Klein and the Atlantic’s Derek Thompson – and they believe the left is overdue for a reckoning of sorts.Klein and Thompson make their case in a new book simply called, with no subtitle, Abundance. The authors put forward a positive pitch for “abundance liberalism”: a vision of the US where policymakers spend less time fighting over how to apportion scarce resources and more time making sure there’s no scarcity to start with.View image in fullscreenAbundance has received a mostly positive reception so far, but also sparked debate, with critics arguing that the book ignores the effect of corporate power, downplays Republicans’ role in the crises that the US faces or overstates the effectiveness of its policy prescriptions. A writer in the left-leaning magazine American Prospect accused the “abundance agenda” of being “neoliberalism repackaged for a post-neoliberal world”.The book opens with a striking image of a US, in the year 2050, that is close to utopia. Americans’ electrical needs are powered by sustainable energy “so clean it barely leaves a carbon trace and so cheap you can scarcely find it on your monthly bill”. AI breakthroughs, labor rights and economic reforms mean that most people can do their jobs in a shorter workweek. Vertical farms provide cheap and fresh vegetables, desalinated water from the ocean is used as drinking water, and lab-grown meat has replaced animal slaughter.This near-future America – less the gritty neon smog of Blade Runner than a hi-tech Copenhagen – is entirely achievable, the authors argue. It just requires political vision and a willingness to reconsider certain assumptions.Despite being the richest country in the world, the US has a problem of scarcity, particularly in Democratic-run metropolitan areas, where the costs of housing and other basic needs have spiraled out of control. This is exacerbated by the traditional progressive solution of giving people money or vouchers to help them pay for finite resources such as housing, healthcare and food, the book argues, which increases demand and merely makes those things even more expensive.“The problem is that if you subsidize the cost of something that there isn’t enough of, you’ll raise prices or force rationing,” Klein has said. He and Thompson have described themselves as “supply-side” progressives, borrowing a term usually associated with conservative economic theories.What the US badly needs to do is build, they argue – build more houses, public transportation, power plants and other infrastructure – but that isn’t happening.One obstacle is nimbyism, the tendency of people to support public works and development in the abstract but fight them when they affect their own neighborhoods. Another is “everything bagel” logrolling that complicates what should be narrowly focused legislation by layering it with other social and political objectives, such as diverse hiring requirements or climate crisis goals, in order to appease interest groups or political constituencies.In an example Thompson recently discussed on a podcast, then president Joe Biden signed legislation in 2021 providing $42bn of funding to expand access to broadband internet in rural America. As of this December, according to Politico, the program had “yet to connect a single household”. Critics told Politico that this was partly because of a “suite of federal conditions” that required states “accepting the money to make sure providers plan for climate change, reach out to unionized workforces and hire locally”, as well as guarantee affordable broadband plans for people with low incomes.“I don’t want the state of Virginia taking, say, federal money to build broadband internet and then charging poor rural folks, like, $200 a month to go online,” Thompson said. “But by holding those values so closely … we accidentally built just about nothing.” A “confusion of process versus outcomes” meant that “very little was actually done on behalf of the Americans for whom we wanted to raise their living standards”.Another example is California, which in 1982 began studying the idea of implementing a high-speed rail system across the state. The idea was, and is, extremely popular with voters, and billions of dollars were budgeted for the project. Four decades later, almost none of it has been built. A “vetocracy” of regulatory, legal, environmental and political considerations have caused endless delays and continually narrowed the project’s ambition.“In the time California has spent failing to complete its 500-mile high-speed rail system,” Thompson and Klein write, “China has built more than 23,000 miles of high-speed rail.”The solution to these problems, Abundance argues, is a combination of techno-optimism, ambitious and clearly defined policy goals, and political leadership that is willing at times to say no to progressive pressure groups.Klein and Thompson favorably cite what happened when a bridge collapsed in Pennsylvania in 2023, crippling an essential highway. To fix it would typically take months of planning, consultation and reviews; Governor Josh Shapiro instead declared a state of emergency that allowed the reconstruction of the bridge with union labor but free from many normal processes. The highway reopened in 12 days, instead of the 12 to 24 months that it might have taken.Abundance makes clear that it is a book written for the left, and isn’t really interested in elaborating the ways that Republicans and conservatives have contributed to these problems, though Klein and Thompson acknowledge that they have. Yet within the left the book has proved controversial.“[I]t would be a huge mistake,” Matt Bruenig, a policy analyst, wrote in Jacobin, “to sideline whatever focus there is on welfare state expansion and economic egalitarianism in favor of a focus on administrative burdens in construction.”He continued: “Indeed, we have now seen what it looks like when the government supports and subsidizes technological innovation and implementation without concerning itself with the inegalitarianism of the system. His name is Elon Musk. In its desire to promote electrical vehicles and rocketry innovations, the US government made him the richest man in the world and then he used his riches to take over a major political communications platform and then the government.”While agreeing with some of Abundance’s aims, the journalists Paul Glastris and Nate Weisberg, writing in the Washington Monthly, argued that the book’s prescriptions wouldn’t necessarily bring the kind of sweeping changes that Klein and Thompson believe. For example, according to examples they cite, areas of the US that have reformed zoning laws to make it easier to build apartment buildings and multifamily homes have seen only modest reductions in the cost of housing.Thompson and Klein have argued that the abundance agenda is bigger than any individual policy proposal, and more about the Democratic party and other left-leaning institutions rethinking their own ambitions and how they conceive of success and failure.“Liberals should be able to say: Vote for us, and we will govern the country the way we govern California!” they write. “Instead, conservatives are able to say: Vote for them, and they will govern the country the way they govern California! … What has gone wrong?” More

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    Trump administration rescinds congestion pricing for New York City

    The Trump administration announced on Wednesday it intends to rescind approval of New York City’s congestion pricing program that is designed to reduce traffic in the heart of busy Manhattan and, in the process, raise billions to upgrade New York’s subway train and bus systems.The Metropolitan Transportation Authority (MTA), the public-private entity that provides public transportation services in the New York metro area, immediately sued the government in an effort to block its move.The system – the first of its kind in a US city – has only been in operation for a few weeks, starting on 5 January after previously being blocked last year. But Sean Duffy, the US transportation secretary, said the federal government’s move will now halt the program. Donald Trump pledged on the campaign trail to use federal power to revoke approval for the program that was approved in the final months of the Biden administration.On Wednesday, Trump wrote on Truth Social: “CONGESTION PRICING IS DEAD. Manhattan, and all of New York, is SAVED. LONG LIVE THE KING!”Kathy Hochul, the New York governor and a Democrat, who has been strongly behind the scheme, said earlier that the money raised from charging tolls to drivers would underpin $15bn in debt financing for mass transit capital improvements.But in a letter addressed to Hochul on Wednesday, Duffy said: “I share the president’s concerns about the impact to working class Americans who now have an additional financial burden to account for in their daily lives. Users of the highway network within the CBD [central business district] tolling area have already financed the construction and improvement of these highways through the payment of gas taxes and other taxes.”He added: “The recent imposition of this [congestion pricing program] upon residents, businesses, and commuters left highway users without any free highway alternative on which to travel within the relevant area. Moreover, the revenues generated under this pilot program are directed toward the transit system as opposed to the highways. I do not believe that this is a fair deal.”Duffy also cited concerns expressed by New Jersey’s governor, Phil Murphy, also a Democrat, and the state’s transportation commissioner, Francis O’Connor.On 20 January, the day of Trump’s inauguration, Murphy sent a letter to Trump in which he asked him to re-examine New York’s congestion pricing program. “The resulting congestion pricing plan is a disaster for working and middle-class New Jersey commuters and residents,” Murphy wrote.In Wednesday’s letter, Duffy also said that he believes the “imposition of tolls under the [congestion pricing program] appears to be driven primarily by the need to raise revenue for the Metropolitan Transit Authority system as opposed to the need to reduce congestion”.“I recognize that preliminary project data published by the MTA reports a congestion reduction benefit, but the toll rate that is set … should not be driven primarily by revenue targets, particularly revenue targets that have nothing to do with the highway infrastructure,” he continued.The US transportation department’s decision to rescind approval of the program will put a halt to the city initiative, which imposes a $9 fee on drivers who enter Manhattan below 60th Street between 5am and 9pm on weekdays and 9am to 9pm on weekends.Last May, Trump vowed to end the program, writing on his Truth Social platform: “I will TERMINATE Congestion Pricing in my FIRST WEEK back in Office!!!”skip past newsletter promotionafter newsletter promotionThe Guardian has reached out to Hochul’s office for comment.In response to the transportation department’s decision, Jerry Nadler, the US representative of New York, said that the arguments are “utterly baseless and frankly, laughable”.“The notion of revoking approval for a federal initiative of this magnitude is nearly without precedent. I firmly believe that there is no legal basis for the President to unilaterally halt this program,” he wrote, adding: “Mr President, we’ll see you in court.”Duffy gave no date to end the program, and his announcement could bring other legal challenges. New Yorkers had mixed views about the scheme, but proponents of public transport and a cleaner environment were behind it and in the early days there were indications from MTA data that street congestion had eased in central Manhattan, the New York Times reported.The MTA and a New York bridge authority filed a lawsuit in Manhattan against Duffy, saying the department’s decision to withdraw approval of the program is “for blatantly political reasons” to uphold Trump’s campaign promise.“The administration’s efforts to summarily and unilaterally overturn the considered determinations of the political branches – federal, state, and city – are unlawful, and the court should declare that they are null and void,” the suit said.Reuters contributed reporting More

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    The US should nationalize the Greyhound bus company. Hear me out | Bhaskar Sunkara

    Joe Biden’s love of trains is well known. “Amtrak Joe” has vowed to invest in America’s crumbling railways and encourage Americans to embrace clean and green mass transit over gas-guzzling automobiles. For decades, the American left has urged the government to make massive investments in rail travel for just these reasons. Yet there is another simple, cheap, and instant way to upgrade our public transit infrastructure, reduce carbon, alleviate traffic, and provide efficient and affordable intercity travel: the government should buy Greyhound.Greyhound Canada recently announced that the company plans to permanently cease operations there. The move was yet another sign that the financial woes of the inter-city motorcoach industry are not going away. Since the pandemic no transport industry has been more hurt than commercial bus lines. Nearly all schedules for the entire industry were shut down for months with no end in sight; Greyhound USA has recently been able to reopen most of its scheduled routes, but a continued depression in ridership means the company can’t keep all of its lines open. Greyhound has even resorted to selling stations in Chicago and Denver.Unlike most major transport industries, inter-city bus operators received very little help from the United States government during the pandemic. Commercial airlines got a whopping $60bn, Amtrak got $1.5bn, and public transit was awarded a much-needed $30bn to keep the trains, buses, and trolleys moving. Yet motorcoaches – which collectively make nearly 600 million passenger trips a year in the United States, and employ around 100,000 workers – received a paltry $100m.Despairing bus industry executives organized a “Rolling Rally” in Washington to demand more cash. While the sector has since received slightly greater attention it’s unlikely that the funds will be enough to make up for the loss in ridership, which dipped to historic lows.A cash handout is effectively a bet that the industry will recover to pre-Covid profits and grow after; right now that’s not a bet any private investor would make.Low-cost air travel and affordable car travel, have made things difficult for the intercity bus industry. Yet bus travel does maintain a great advantage over both rail and air competition: the sheer number of destinations a rider can choose. Using America’s already nationalized interstate system, Greyhound alone still services some 2,400 station stops. Unfortunately, this practical strength is also a business weakness.Greyhound is in trouble, which means the feds can buy the company for cheap … the federally owned bus system could pay for its own operating cost through faresA daily roundtrip from Newport News to Norfolk is significantly less profitable than hourly trips to and from a major hub such as New York City. Lacking extensive regulation and government subsidy, Greyhound executives are forced to focus their investments on the most profitable schedules while ditching small-town and rural communities. Yet this is another bind: while coastal schedules have the highest ridership they also face the stiffest competition from budget and Chinatown bus lines such as Megabus and from Amtrak and regional rail. The profit squeeze is tight and it will only get tighter.So the only way to save the intercity bus system as it exists is to greatly increase ridership to and from low-priority destinations while staying competitive on the highly profitable coastal corridors. In order to do both, you need to greatly reduce the price of fares – which have increased in recent years and are more expensive than comparable service in other countries.That’s where the US government comes in.Greyhound is in trouble, which means the feds can buy the company for cheap. Once purchased, the government could temporarily ignore the profit problem and focus on rescuing the fleet – providing affordable travel as a public good. Just as the US post office does not use a dime of taxpayer money, the federally owned Greyhound bus system could pay for its own operating cost through fares; without the burden of costly executives and grubby shareholders, the organization would likely save a great deal of money in overhead.The benefits of an old-fashioned nationalization scheme like this are enormous. It would simultaneously save the Greyhound bus system, which transports up to 17 million people a year, put it to good public use with positive impacts elsewhere in the economy, and protect thousands of stable union jobs. But there’s another, less obvious benefit.The British environmentalist George Monbiot raised eyebrows a few years ago when he argued that, as far as carbon emissions are concerned, our best bet is not just to rebuild and expand the railways but instead to provide nearly universal motorcoach transit.Switching from car to coach, Monbiot noted, cuts carbon by an astonishing 88%. And these efficiencies could be dramatically increased in a relatively short period of time by improving the bus fleet technology with all-electric vehicles and by some clever infrastructure tweaks.For one, let’s move bus stations out of city centers and to the edges of major hub cities, nearer to the interstate highways. By getting rid of the awful winding trips buses make in and out of city centers, motorcoaches would be free to hit the open road and speed off to their destination. Even better, let’s add dedicated motorcoach lanes to major highways to help speed bus travel. Highway bus lanes would not only provide speedier service for bus passengers but also greatly alleviate overall traffic. Each full coach would replace many cars’ worth of traffic. And, as Monbiot notes, the buses would effectively advertise themselves: individual motorists, watching buses zoom by them, will soon realize that if you want to get somewhere fast, the bus is the way to go.With a few small tweaks, a government-owned Greyhound system could go from clunky, expensive, and slow to efficient, affordable, and speedy. But such a transformation would require a state visionary enough to challenge the dogmas of private market competition. More