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      in US Politics

      Why Republicans won’t agree to Biden’s big plans and why he should ignore them | Robert Reich

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      If there were ever a time for bold government, it is now. Covid, joblessness, poverty, raging inequality and our last chance to preserve the planet are together creating an existential inflection point.Fortunately for America and the world, Donald Trump is gone, and Joe Biden has big plans for helping Americans survive Covid and then restructuring the economy, rebuilding the nation’s infrastructure and creating millions of green jobs.But Republicans in Congress don’t want to go along. Why not?Mitch McConnell and others say America can’t afford it. “We just passed a program with over $900bn in it,” groused Senator Mitt Romney, the most liberal of the bunch.Rubbish. We can’t afford not to. Fighting Covid will require far more money. People are hurting.Besides, with the economy in the doldrums it’s no time to worry about the national debt. The best way to reduce the debt as a share of the economy is to get the economy growing again.The real reason Republicans want to block Biden is they fear his plans will workRepairing ageing infrastructure and building a new energy-efficient one will make the economy grow even faster over the long term – further reducing the debt’s share.No one in their right mind should worry that public spending will “crowd out” private investment. If you hadn’t noticed, borrowing is especially cheap right now. Money is sloshing around the world, in search of borrowers.It’s hard to take Republican concerns about debt seriously when just four years ago they had zero qualms about enacting one of the largest tax cuts in history, largely for big corporations and the super-wealthy.If they really don’t want to add to the debt, there’s another alternative. They can support a tax on super-wealthy Americans.The total wealth of America’s 660 billionaires has grown by a staggering $1.1tn since the start of the pandemic, a 40% increase. They alone could finance almost all of Biden’s Covid relief package and still be as rich as they were before the pandemic. So why not a temporary emergency Covid wealth tax?The real reason Republicans want to block Biden is they fear his plans will work.It would be the Republican’s worst nightmare: all the anti-government claptrap they’ve been selling since Ronald Reagan will be revealed as nonsense.Government isn’t the problem and never was. Bad government is the problem, and Americans have just had four years of it. Biden’s success would put into sharp relief Trump and Republicans’ utter failures on Covid, jobs, poverty, inequality and climate change, and everything else.Biden and the Democrats would reap the political rewards in 2022 and beyond. Democrats might even capture the presidency and Congress for a generation. After FDR rescued America, the Republican party went dark for two decades.Trumpian Republicans in Congress have an even more diabolical motive for blocking Biden. They figure if Americans remain in perpetual crises and ever-deepening fear, they’ll lose faith in democracy itself.This would open the way for another strongman demagogue in 2024 – if not Trump, a Trump-impersonator like Ted Cruz, Josh Hawley or Donald Trump Jr.The worst-kept secret in Washington is Biden doesn’t really need RepublicansIf Biden is successful, Americans’ faith in democracy might begin to rebound – marking the end of the nation’s flirtation with fascism. If he helps build a new economy of green jobs with good wages, even Trump’s angry white working-class base might come around.The worst-kept secret in Washington is Biden doesn’t really need Republicans, anyway. With their razor-thin majorities in both houses of Congress, Democrats can enact Biden’s plans without a single Republican vote.The worry is Biden wants to demonstrate “bipartisan cooperation” and may try so hard to get some Republican votes that his plans get diluted to the point where Republicans get what they want: failure.Biden should forget bipartisanship. Mitch McConnell and Senate Republicans didn’t give a hoot about bipartisanship when they and Trump were in power.If Republicans try to stonewall Biden’s Covid relief plan, Biden and the Democrats should go it alone through a maneuver called “reconciliation”, allowing a simple majority to pass budget legislation.If Republicans try to block anything else, Biden should scrap the filibuster – which now requires 60 senators to end debate. The filibuster isn’t in the constitution. It’s anti-democratic, giving a minority of senators the power to block the majority. It was rarely used for most of the nation’s history.The filibuster can be ended by a simple majority vote, meaning Democrats have the power to scrap it. Biden will have to twist the arms of a few recalcitrant Democrats, but that’s what presidential leadership often requires.The multiple crises engulfing America are huge. The window of opportunity for addressing them is small. If ever there was a time for boldness, it is now. More

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      in US Politics

      Joe Biden cannot govern from the center – quashing Trumpism demands radical action | Robert Reich

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      I keep hearing that Joe Biden will govern from the “center”. He has no choice, they say, because he will have razor-thin majorities in Congress and the Republican party has moved to the right.Rubbish. I’ve served several Democratic presidents who have needed Republican votes. But the Republicans now in Congress are nothing like those I’ve dealt with. Most of today’s GOP live in a parallel universe. There’s no “center” between the reality-based world and theirs.Last Wednesday, fully 93% of House Republicans voted against impeaching Trump for inciting insurrection, even after his attempted coup threatened their very lives.The week before, immediately following the raid on the Capitol, two-thirds of House Republicans and eight Republican senators refused to certify election results on the basis of Trump’s lies about widespread fraud – lies rejected by 60 federal judges as well as Trump’s own departments of justice and homeland security.Prior to the raid, several Republican members of Congress repeated those lies on television and Twitter and at “Stop the Steal” events – encouraging Trump followers to “fight for America” and start “kicking ass”.This is the culmination of the growing insanity of the GOP over the last four years. Trump has remade the Republican party into a white supremacist cult living within a counter-factual wonderland of lies and conspiracies.More than half of Republican voters – almost 40 million people – believe Trump won the 2020 race; 45% support the storming of the Capitol; 57% say he should be the Republican candidate in 2024.Trump has remade the Republican party into a white supremacist cult living within a counter-factual wonderland of lies and conspiraciesIn this hermetically sealed cosmos, most Republicans believe Black Lives Matter protesters are violent, immigrants are dangerous and the climate crisis doesn’t pose a threat. A growing fringe openly talks of redressing grievances through violence, including QAnon conspiracy theorists, of whom two are newly elected to Congress, who think Democrats are running a global child sex-trafficking operation.How can Biden possibly be a “centrist” in this new political world?There is no middle ground between lies and facts. There is no halfway point between civil discourse and violence. There is no midrange between democracy and fascism.Biden must boldly and unreservedly speak truth, refuse to compromise with violent Trumpism and ceaselessly fight for democracy and inclusion.Speaking truth means responding to the world as it is and denouncing the poisonous deceptions engulfing the right. It means repudiating false equivalences and “both sidesism” that gives equal weight to trumpery and truth. It means protecting and advancing science, standing on the side of logic, calling out deceit and impugning baseless conspiracy theories and those who abet them.Refusing to compromise with violent Trumpism means renouncing the lawlessness of Trump and his enablers and punishing all who looted the public trust. It means convicting Trump of impeachable offenses and ensuring he can never again hold public office – not as a “distraction” from Biden’s agenda but as a central means of re-establishing civility, which must be a cornerstone of that agenda.Strengthening democracy means getting big money out of politics, strengthening voting rights and fighting voter suppression in all its forms.It means boldly advancing the needs of average people over the plutocrats and oligarchs, of the white working class as well as Black and Latino people. It means embracing the ongoing struggle for racial justice and the struggle of blue-collar workers whose fortunes have been declining for decades.The moment calls for public investment on a scale far greater than necessary for Covid relief or “stimulus” – large enough to begin the restructuring of the economy. America needs to create a vast number of new jobs leading to higher wages, reversing racial exclusion as well as the downward trajectory of Americans whose anger and resentment Trump cynically exploited.This would include universal early childhood education, universal access to the internet, world-class schools and public universities accessible to all. Converting to solar and wind energy and making America’s entire stock of housing and commercial buildings carbon neutral. Investing in basic research – the gateway to the technologies of the future as well as national security – along with public health and universal healthcare.It is not a question of affordability. Such an agenda won’t burden future generations. It will reduce the burden on future generations.It is a question of political will. It requires a recognition that there is no longer a “center” but a future based either on lies, violence and authoritarianism or on unyielding truth, unshakeable civility and radical inclusion. And it requires a passionate, uncompromising commitment to the latter. More

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      in Elections

      The $2,000 stimulus cheques alone won't work – the US needs better infrastructure

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      With the Democrats’ stunning sweep of Georgia’s two Senate run-off elections giving them control of both houses of Congress as of 20 January, the idea of $2,000 stimulus cheques for every household is sure to be back on the agenda in the US. But although targeted relief for the unemployed should unquestionably be a priority, it is not clear that $2,000 cheques for all would in fact help to sustain the US economic recovery.One post-pandemic scenario is a vigorous demand-driven recovery as people gorge on restaurant meals and other pleasures they’ve missed for the past year. Many Americans have ample funds to finance a splurge. Personal savings rates soared following the disbursement of $1,200 cheques last spring. Many recipients now expect to save their recent $600 relief payments, either because they have been spared the worst of the recession or because spending opportunities remain locked down.So, when it’s safe to go out again, the spending floodgates will open, supercharging the recovery. The Fed has already promised to “look through” – that is, to disregard – any temporary inflation resulting from this euphoria.But we shouldn’t dismiss the possibility of an alternative scenario in which consumers instead display continued restraint, causing last year’s high savings rates to persist. Prior to the Covid-19 crisis, some two-thirds of US households lacked the savings to replace six weeks of take-home pay. Having reminded Americans of the precariousness of their world, the pandemic is precisely the type of searing experience that induces fundamental changes in behaviour.We know that living through a large economic shock, especially in young adulthood, can have an enduring impact on people’s beliefs, including those about the prevalence of future shocks. Such changes in outlook are consistent with psychological research showing that people rely on “availability heuristics” – intellectual shortcuts based on recalled experience – when assessing the likelihood of an event. For those parents unable to put food on the table during the pandemic, the experience will establish a heuristic that will be hard to forget.Moreover, neurological research shows that economic stress, including from large shocks, increases anabolic steroid hormone levels in the blood, which renders individuals more risk-averse. Neuroscientists have also documented that traumatic stress can cause permanent synaptic changes in the brain that further shape attitudes and behaviour, in this case plausibly in the direction of greater risk aversion.Though the pandemic is in some ways more akin to a natural disaster than an economic shock, natural disasters also can affect saving patterns: savings rates tend to be higher in countries with a greater incidence of earthquakes and hurricanes.This behavioural response is largest in developing countries, where weak construction standards amplify the impact of such disasters. One study of Indonesia, for example, found large increases in both the perceived risk of a future disaster and risk-averse behaviour among people who had recently experienced an earthquake or flood. While the response to natural disasters may be more moderate in advanced economies – where individuals expect that their government will compensate them – some lasting impact will almost certainly remain.The upshot is that we can’t count on a burst of US consumer spending to fuel the recovery once the rollout of Covid-19 vaccines is complete. And if private spending remains subdued, continued support from public spending will be necessary to sustain the recovery.But putting $2,000 cheques in people’s bank accounts won’t solve this problem because unspent money doesn’t stimulate demand. With interest rates already near zero, the availability of additional funding won’t even encourage investment. Sending out $2,000 cheques to everyone thus would be the fiscal equivalent of pushing on a string.Fortunately, there is an alternative: the president-elect Joe Biden’s $2tn infrastructure plan would mean additional jobs and spending, which is what the post-pandemic economy really needs. Better still, under the prevailing low interest rates, this option would stimulate job creation without crowding out private investment.Guardian business email sign-upAlthough Biden’s plan will require more government borrowing, infrastructure spending that has a rate of return of 2% will more than pay for itself when the yield on 10-year US treasury bonds is 1.15%. By raising output, such expenditure reduces rather than increases the burden on future generations. The International Monetary Fund estimates that, under current circumstances, well-targeted infrastructure investment pays for itself in just two years.Obviously, the “well targeted” part is important. President Donald Trump was right that the Coronavirus Aid, Relief, and Economic Security Act was loaded with pork, not least his own “three-martini lunch” tax deduction for businesses. There’s every reason to question whether Congress can do better when crafting an infrastructure bill.In response to this problem, countries such as New Zealand have established independent commissions to design and monitor infrastructure spending initiatives. If Covid-19 changes everything, then maybe it can change the way the US government organises infrastructure spending. Creating an independent infrastructure commission with real powers would go a long way toward reassuring the sceptics and insuring the recovery against the risks posed by the pandemic’s lingering behavioural effects. More

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      in US Politics

      'No time to waste': Biden unveils $1.9tn coronavirus stimulus package

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      Joe Biden has unveiled a $1.9tn coronavirus relief proposal, aimed at urgently combating the pandemic and the economic crisis it has triggered. As the US faces its deadliest stage of the pandemic, Biden described the moment as “a crisis of deep human suffering”.
      The ambitious, wide-ranging plan includes $160bn to bolster vaccination and testing efforts, and other health programs and $350bn for state and local governments, as well as $1tn in relief to families, via direct payments and unemployment insurance.
      “There’s no time to waste,” Biden said. “We have to act and we have to act now.”
      Details of the aid package had been released by Biden’s transition team earlier on Thursday.
      If adopted, the proposal would tack on $1,400 to the $600 in direct payments for individuals that Congress approved most recently. “We will finish the job of getting a total of $2,000 in relief to people who need it the most,” Biden said.
      Supplemental unemployment insurance would also increase to $400 a week from $300 a week and would be extended to September.
      “During this pandemic, millions of Americans, through no fault of their own, have lost the dignity and respect that comes with a job and a paycheck,” Biden said on Thursday, speaking from Wilmington, Delaware. “There is real pain overwhelming the real economy.”
      Biden ran on the promise that he would deliver Americans through the coronavirus crisis, and more recently has pledged to ramp up vaccination efforts, and oversee the administering of 100m covid-19 jabs during his first 100 days. More

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      in US Politics

      US jobs numbers drop dramatically as Covid cases soar across the country

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      The recovery in the US jobs market collapsed in December, the last full month of Donald Trump’s presidency, as coronavirus infections soared across the country.The US lost 140,000 jobs in December, down from a gain of 245,000 in November, according to the Bureau of Labor Statistics (BLS). The loss ended seven months of jobs growth with the leisure and hospitality sector once again bearing the biggest losses.The unemployment rate stayed at 6.7%, close to twice as high as it was in February before Covid-19 hit the US. It is also three percentage points higher than the 4.5% rate Trump inherited from his predecessor Barack Obama.Some 372,000 jobs were lost in food services and drinking places, offsetting gains in other areas, as Covid-19 infections and deaths rose sharply across the country. “The decline in payroll employment reflects the recent increase in coronavirus (Covid-19) cases and efforts to contain the pandemic,” the BLS said.Four million Americans have been unemployed for 27 weeks or more – technically defined as long-term unemployed – accounting for 37% of those out of work. Unemployment rates for black (9.9%) and Latino (9.3%) workers remained sharply higher than for white Americans (6%).After months of wrangling Congress passed a $900bn stimulus package in December but the relief came too late for many. Joe Biden has pledged more aid for those hit by the pandemic’s economic fallout but areas like hospitality are likely to continue suffering until the virus is under control.Friday’s latest jobs report comes after months of worrying signs in the jobs market. On Thursday the labor department said another 787,000 people had filed first-time claims for jobless benefits in the week ending 2 January. The figure was slightly lower than the previous week but remained more than twice as high as pre-pandemic levels.On Wednesday ADP, the US’s largest payroll supplier, said the private sector had shed 123,000 jobs from November to December, the first decline since April 2020. Losses were primarily concentrated in retail, leisure and hospitality – all areas that suffered heavy losses in the first wave of the pandemic. On the same day minutes from the last Federal Reserve meeting showed policymakers expected the escalating number of coronavirus cases “would be particularly challenging for the labor market in coming months”.The crisis has left millions of Americans facing food shortages and homelessness as unemployment officers across the country have struggled to keep up with the huge numbers of claims.According to the Associated Press only three states, North Dakota, Rhode Island and Wyoming, have met the federal standard of getting benefit payments out to successful claimants within three weeks for 87% of applicants. More

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      in US Politics

      Healthcare to the electoral college: seven ways 2020 left America exposed | Robert Reich

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      If America learns nothing else from these dark times, here are seven lessons it should take from 2020:1 Workers keep America going, not billionairesAmerican workers have been forced to put their lives on the line to provide essential services even as their employers failed to provide adequate protective gear, hazard pay, or notice of when Covid had infected their workplaces. Meanwhile, America’s 651 billionaires – whose net worth has grown by more than $1tn since the start of the pandemic – retreated to their mansions, yachts and estates.Amazon’s chief executive, Jeff Bezos, sheltered in his 165,000-acre west Texas ranch while Amazon warehouse workers toiled in close proximity, often without adequate masks, gloves or sanitizers. The company offered but soon scrapped a $2 an hour hazard pay increase, even as Bezos’ wealth jumped by a staggering $70bn since March, putting his estimated net worth at roughly $186bn as the year came to an end.2 Systemic racism is killing Black and Latino AmericansBlack and Latino Americans account for almost 40% of coronavirus deaths so far, despite comprising less than a quarter of the population. As they’ve borne the brunt of this pandemic, they’ve been forced to fight for their humanity in another regard: taking to the streets to protest decades of unjust police killings, only to be met with more police violence.Among Native American communities, the coronavirus figures are even more horrifying. The Navajo Nation has had a higher per-capita infection rate than any state but cannot adequately care for the sick, thanks to years of federal underfunding and neglect of its healthcare system.Decades of segregated housing, pollution, lack of access to medical care, and poverty have left communities of color vulnerable to the worst of this virus, and the worst of America.3 If we can afford to bail out corporations and Wall Street, we sure as hell can afford to help peopleThe Senate majority leader, Mitch McConnell, continues to insist the nation cannot “afford” $2,000 survival checks for every American. But the latest relief legislation doled out more than $220bn to powerful business interests that could have been used for struggling working families.Another way of looking at it: the total cost of providing those $2,000 checks ($465bn) would be less than half the amount America’s 651 billionaires added to their wealth during the pandemic ($1tn).4 Healthcare must be made a rightEven before this crisis struck, an estimated 28 million Americans lacked health insurance. An additional 15 million lost employer-provided coverage because they lost their jobs. Without insurance, a hospital stay to treat Covid-19 cost as much as $73,000. Remember this the next time you hear pundits saying Medicare for All is too radical.5 Our social safety nets are woefully brokenNo other advanced nation was as unprepared for the pandemic as was the US. Our unemployment insurance system is more than 80 years old, designed for a different America. We’re one of the few countries in the world that doesn’t provide all workers some form of paid sick leave.Other industrialized nations kept unemployment rates low by guaranteeing paychecks. Americans who filed for unemployment benefits often got nothing, or received them weeks or months late. Under new legislation they get just $300 a week of extra benefits to tide them over.6 The electoral college must be abolishedJoe Biden won 7m more votes than Trump. But his winning margin in Arizona, Georgia and Wisconsin totaled just 45,000. Had Trump won those three states, he would have gained 37 electoral votes, tying Biden in the electoral college. This would have pushed the election to the House of Representatives, with each state delegation getting one vote. Even though Democrats have a majority in the House, more state delegations have Republican majorities. Trump would have been re-elected.The gap between the popular and electoral college vote continues to widen. The electoral college is an increasingly dangerous anachronism.7 Government mattersFor decades, conservatives have told us government is the problem and we should let the free market run its course. Rubbish. The coronavirus has shown yet again that the unfettered free market won’t save us. After 40 years of Reaganism, it’s never been clearer: government is in fact necessary to protect the public.It’s tragic that it took a pandemic, near-record unemployment, millions taking to the streets and a near-calamitous election for many to grasp how broken, racist and backwards our system really is. Biggest lesson of all: it must be fixed. More

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      in US Politics

      Coronavirus sharpens America's already stark economic inequalities

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      [embedded content]
      Walter Almendarez doubts there will be any presents beneath his artificial Christmas tree – not for his daughter, his nephews or anyone else.
      Back in March, Almendarez reread an email over and over again, trying to process the news that he had just been let go from Los Angeles’s Chateau Marmont, where he had worked for over two decades. He was among more than 200 people fired by the swanky hotel in one fell swoop.
      “It was just terrible, the way they did it,” he said.
      Widespread local shutdowns made finding a new job practically impossible, and soon, he used up his 401(k) retirement savings just trying to pay the bills.
      Like Almendarez, tens of millions of people across America are struggling to make ends meet in an economy devastated by the impact of efforts to control the coronavirus pandemic. Yet at the same time millions of other Americans are enjoying an end-of-year spending spree. The National Retail Federation is projecting that holiday sales will jump between 3.6 and 5.2% this year compared with 2019, with consumers collectively spending well over $750bn.
      Those startling discrepancies represent a stark example of how the pandemic has exacerbated America’s already chronic inequalities, amid a widespread awakening to the country’s deep-rooted problems with economic and racial injustice.
      “It is definitely something that has increased disparities between white and Black, between those well-off and less well-off – high wage, low wage. All of those things have been absolutely pulling apart,” said Elise Gould, a senior economist at the Economic Policy Institute (EPI).
      During the pandemic, 651 billionaires have accrued more than $1tn in additional wealth – enough to send every American a $3,000 check and then some. But so far, that prosperity has not trickled down to 26.1 million US workers, who in November were still wrestling with direct impacts from the economic downturn, including unemployment and drops in pay.
      Those hardships have disproportionately fallen on Black and brown people, who were less likely to be able to work from home even pre-pandemic. In the third quarter of 2020, the unemployment rates for Black people and Latinos were 13.2% and 11.2% respectively, compared with 7.9% for white people.
      The slowdown has also caused a “shecession” for women, especially women of color, who have been overburdened with caretaking responsibilities while simultaneously watching their industries flounder.
      As Americans struggle to pay rent or buy food, “the worst suffering” people can experience “could really be heading for us as we go into the end of the year”, warned Amanda Fischer, policy director at the Washington Center for Equitable Growth, a research and grant-making non-profit.
      Early into the pandemic, Congress’s Cares Act, which provided $2.2tn in coronavirus aid, proved “one of the most effective anti-poverty tools we’ve seen in American history”, Fischer said. But those provisions were only temporary, and once they vanished, vehicles lined up outside food banks while renters fell months behind on their bills.
      Then, when the US economy started to rebound, it did so through a “K-shaped” recovery, benefiting the rich and leaving behind almost everyone else. The stock market – where about 80% of wealth has historically been owned by the top 10% of households – continued to surge, and CEOs projected widespread confidence in the economy, despite many of them expecting to reduce their workforce and let wages stagnate.
      High earners also fared well, with the employment rate for those making over $60,000 eventually eclipsing what it had been near the beginning of 2020, according to not-for-profit organization Opportunity Insights. More

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      in US Politics

      Trickle-down economics doesn't work but build-up does – is Biden listening? | Robert Reich

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      How should the huge financial costs of the pandemic be paid for, as well as the other deferred needs of society after this annus horribilis?Politicians rarely want to raise taxes on the rich. Joe Biden promised to do so but a closely divided Congress is already balking.That’s because they’ve bought into one of the most dangerous of all economic ideas: that economic growth requires the rich to become even richer. Rubbish.Economist John Kenneth Galbraith once dubbed it the “horse and sparrow” theory: “If you feed the horse enough oats, some will pass through to the road for the sparrows.”We know it as trickle-down economics.In a new study, David Hope of the London School of Economics and Julian Limberg of King’s College London lay waste to the theory. They reviewed data over the last half-century in advanced economies and found that tax cuts for the rich widened inequality without having any significant effect on jobs or growth. Nothing trickled down.Meanwhile, the rich have become far richer. Since the start of the pandemic, just 651 American billionaires have gained $1tn of wealth. With this windfall they could send a $3,000 check to every person in America and still be as rich as they were before the pandemic. Don’t hold your breath.You don’t need a doctorate in ethical philosophy to think that now might be a good time to redistribute some of richesStock markets have been hitting record highs. More initial public stock offerings have been launched this year than in over two decades. A wave of hi-tech IPOs has delivered gushers of money to Silicon Valley investors, founders and employees.Oh, and tax rates are historically low.Yet at the same time, more than 20 million Americans are jobless, 8 million have fallen into poverty, 19 million are at risk of eviction and 26 million are going hungry. Mainstream economists are already talking about a “K-shaped” recovery – the better-off reaping most gains while the bottom half continue to slide.You don’t need a doctorate in ethical philosophy to think that now might be a good time to tax and redistribute some of the top’s riches to the hard-hit below. The UK is already considering an emergency tax on wealth.The president-elect has rejected a wealth tax, but maybe he should be even more ambitious and seek to change economic thinking altogether.The practical alternative to trickle-down economics might be called build-up economics. Not only should the rich pay for today’s devastating crisis but they should also invest in the public’s long-term wellbeing. The rich themselves would benefit from doing so, as would everyone else.At one time, America’s major political parties were on the way to embodying these two theories. Speaking to the Democratic national convention in 1896, populist William Jennings Bryan noted: “There are two ideas of government. There are those who believe that, if you will only legislate to make the well-to-do prosperous, their prosperity will leak through on those below. The Democratic idea, however, has been that if you legislate to make the masses prosperous, their prosperity will find its way up through every class which rests upon them.”Build-up economics reached its zenith in the decades after the second world war, when the richest Americans paid a marginal income tax rate of between 70% and 90%. That revenue helped fund massive investment in infrastructure, education, health and basic research – creating the largest and most productive middle class the world had ever seen.But starting in the 1980s, America retreated from public investment. The result is crumbling infrastructure, inadequate schools, wildly dysfunctional healthcare and public health systems and a shrinking core of basic research. Productivity has plummeted.Yet we know public investment pays off. Studies show an average return on infrastructure investment of $1.92 for every public dollar invested, and a return on early childhood education of between 10% and 16% – with 80% of the benefits going to the general public.The Covid vaccine reveals the importance of investments in public health, and the pandemic shows how everyone’s health affects everyone else’s. Yet 37 million Americans still have no health insurance. A study in the Lancet estimates Medicare for All would prevent 68,000 unnecessary deaths each year, while saving money.If we don’t launch something as bold as a Green New Deal, we’ll spend trillions coping with ever more damaging hurricanes, wildfires, floods and rising sea levels.The returns from these and other public investments are huge. The costs of not making them are astronomical.Trickle-down economics is a cruel hoax, while the benefits of build-up economics are real. At this juncture, between a global pandemic and the promise of a post-pandemic world, and between the administrations of Trump and Biden, we would be well-served by changing the economic paradigm from trickle down to build up. More