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      The first 100 days of Biden were also the first 100 without Trump – that’s telling | Robert Reich

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      By almost any measure, Joe Biden’s first 100 days have been hugely successful. Getting millions of Americans inoculated against Covid-19 and beginning to revive the economy are central to that success.Two-thirds of Americans support Biden’s $1.9tn stimulus plan, already enacted. His infrastructure and family plans, which he outlined on Wednesday night at a joint session of Congress, also have broad backing. The $6tn price tag for all this would make it the largest expansion of the federal government since Lyndon Johnson’s Great Society. But for most Americans, it doesn’t feel radical.Rather than bet it all on a single large-scale program such as universal healthcare – which Bill Clinton failed to accomplish and which Barack Obama turned into a target of Republican fearmongering – Biden has picked an array of popular initiatives, such as preschool, public community college, paid family and medical leave, home care and infrastructure repairs, which are harder to vilify.Economists talk about pent-up demand for private consumer goods, caused by the pandemic. Biden is responding to a pent-up demand for public goods. The demand has been there for years but the pandemic has starkly revealed it. Compared with workers in other developed nations, Americans enjoy few if any social benefits and safety nets. Biden is saying, in effect, it’s time we caught up.Even on the fraught issue of race, the contrast with Trump has strengthened Biden’s handBesides, it’s hard for Republicans to paint Biden as a radical. He doesn’t feel scary. He’s old, grandfatherly. He speaks haltingly. He’s humble. When he talks about the needs of average working people, it’s clear he knows them.Biden has also been helped by the contrast to his immediate predecessor – the most divisive and authoritarian personality to occupy the Oval Office in modern memory. Had Biden been elected directly after Obama, regardless of the pandemic and economic crisis, it’s unlikely he and his ambitious plans would seem so benign.In his address to Congress, Biden credited others for the achievements of his first 100 days. They had been accomplished “because of you”, he said, even giving a nod to Republicans. His predecessor was incapable of crediting anyone else for anything.Meanwhile, the Republican party, still captive to its Trumpian base, has no message or policies to counter Biden’s proposals. Donald Trump left it with little more than a list of grievances irrelevant to the practical needs of most Americans: that Trump would have been re-elected but for fraudulent votes and a “deep state” conspiracy, that Democrats are “socialists” and that the “left” is intent on taking away American freedoms.Biden has a razor-thin majority in Congress and must keep every Democratic senator in line if he is to get his plans enacted. But the vacuum on the right has allowed him to dominate the public conversation about his initiatives, which makes passage more likely.Trump is aiding Biden in other ways. Trump’s yawning budget deficits help normalize Biden’s. When Trump sent $1,200 stimulus checks to most Americans last year regardless of whether they had a job, he cleared the way for Biden to deliver generous jobless benefits.Trump’s giant $1.9tn tax cut for big corporations and the wealthy, none of which “trickled down”, make Biden’s proposals to increase taxes on corporations and the wealthy to pay for infrastructure and education seem even more reasonable.Trump’s fierce economic nationalism has made Biden’s “buy American” initiative appear innocent by comparison. Trump’s angry populism has allowed Biden to criticize Wall Street and support unions without causing a ripple.At the same time, Trumpian lawmakers’ refusal to concede the election and their efforts to suppress votes have alienated much of corporate America, pushing executives toward Biden by default.Even on the fraught issue of race, the contrast with Trump has strengthened Biden’s hand. Most Americans were so repulsed by Trump’s overt racism and overtures to white supremacists, especially after the police murder of George Floyd, that Biden’s initiatives to end police brutality and “root out systemic racism”, as he said on Wednesday night, seem appropriate correctives.The first 100 days of the Biden presidency were also the first 100 days of America without Trump, and the two cannot be separated.With any luck, Biden’s plans might prove to be the antidote to Trumpism – creating enough decent-paying working-class jobs, along with benefits such as childcare and free community college, as to forestall some of the rightwing dyspepsia that Trump whipped into a fury. More

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      Republicans fret over AOC backing for Biden as 100-day mark draws near

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      As Joe Biden welcomed a series of polls showing majority approval for his first 100 days in the White House, and prepared to address Congress for the first time on Wednesday, Republicans attacked his progressive record in office.One senior senator said: “AOC said his first 100 days exceeded her expectations. That’s all you need to know.”Lindsey Graham of South Carolina was talking to Fox News Sunday about remarks by Alexandria Ocasio-Cortez, a congresswoman and leading progressive from New York.Speaking to an online meeting on Friday, she said: “The Biden administration and President Biden have definitely exceeded expectations that progressives had.”Citing the $1.9tn Covid relief and stimulus bill, Ocasio-Cortez said Biden had been “very impressive” in negotiating with Congress to pass “progressive legislation”. She also voiced dissatisfaction with Biden’s $2.25tn infrastructure package.On Sunday, speaking to CNN’s State of the Union, Vice-President Kamala Harris trumpeted the administration’s achievements.“We are going to lift half of America’s children out of poverty,” she said. “How about that? How about that? Think about that … That’s good stuff. That’s really good stuff.”Republicans oppose the price tag on the American Jobs Plan and priorities within it, including plans to raise taxes on wealthier Americans and proposed spending on environmental initiatives.So do some Democrats – on Sunday the West Virginia senator Joe Manchin, a key vote in the 50-50 chamber, told CNN he favoured a slimmed down, “more targeted” bill.Graham was not the only senior GOP figure to complain about something many on the left have praised: that Biden campaigned as a moderate but is governing more as a progressive.Also speaking to Fox News Sunday, the House minority leader, Kevin McCarthy, accused Biden of “a bait and switch. The bait was he was going to govern as bipartisan but the switch is, he’s governed as a socialist”.Graham said: “During the campaign, he made us all believe that Joe Biden would be the moderate choice, that he really thought court-packing was a bonehead idea. All of a sudden we got a commission to change the structure of the supreme court. Making DC a state, I think that’s a very radical idea that will change the make-up of the United States Senate.”Progressives defend Biden’s commission on the supreme court as a necessary answer to Republican hardball tactics that skewed the panel 6-3 in favour of rightwing judges. However, Biden’s commission to examine the issue both contains conservative voices and is unlikely to produce an increase beyond nine justices any time soon.A bill to make DC a state, thereby giving the city representation it currently lacks and almost certainly electing two Democratic senators, has passed the House but is unlikely to pass the Senate.“AOC said his first 100 days exceeded her expectations,” Graham added. “That’s all you need. I like Joe Biden, but I’m in the 43%.”Sunday brought a slew of polls. Fox News put the president’s approval rating at 54% positive to 43% negative, nine points up on Donald Trump at the same time four years ago. NBC put Biden up 51%-43%, ABC made it 52%-42% and CBS reported a 58%-42% split.Graham also insisted Biden had “been a disaster on foreign policy”.The South Carolina senator was once an eager ally of John McCain, the late Arizona senator, presidential nominee and a leading GOP voice on foreign affairs. Biden was a senator from Delaware for 36 years and chaired the foreign relations committee.“The border is in chaos,” Graham said, “the Iranians are off the mat … Afghanistan is gonna fall apart, Russia and China are already pushing him around. So I’m very worried.“I think he’s been a very destabilising president, and economically thrown a wet blanket over the recovery, wanting to raise taxes a large amount and regulate America basically out of business.“So I’m not very impressed with the first 100 days. This is not what I thought I would get from Joe Biden.” More

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      US CEOs think Biden’s corporate tax rate hike will have negative impact – survey

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      The bosses of America’s largest companies overwhelmingly believe Joe Biden’s proposed increase in the country’s corporate tax rate would have a negative impact on their businesses, according to a survey released on Monday.The influential business lobbying group Business Roundtable, whose members include Amazon’s Jeff Bezos and Apple’s Tim Cook, released a survey of 178 CEOs on their thoughts on an increase in corporate tax. The survey specifically questioned the CEOs on the president’s proposed corporate tax hike, which would raise the corporate tax rate from 21% to 28%, to pay for his $2.3tn infrastructure plan.According to 98% of the CEOs surveyed, the corporate tax increase would have a “moderately” to “very” severe impact on their company’s ability to compete on a global scale. Three-fourths of the CEOs said that the tax would negatively affect their ability to conduct research and development innovation and 71% said it would negatively affect their ability to hire new employees.The increase in the corporate tax rate, along with a proposal for higher taxes on companies seeking to get lower tax rates abroad, is part of Biden’s plan to undo the tax cuts Donald Trump made in 2017.When the cuts were passed, Republicans argued that it would encourage domestic investment, which would increase worker productivity and ultimately raise wages. Democrats and some economists are skeptical that any of the benefits from the cuts were seen in the economy before the Covid-19 pandemic.A report released earlier this month from the progressive Institute on Taxation and Economic Policy found that at least 55 of America’s top companies, including FedEx and Nike, paid no federal corporate income tax because of loopholes and substitutes. The report found that the tax breaks cost $8.5bn in potential tax revenue.“Our tax revenues are already at their lowest level in generations,” Janet Yellen, treasury secretary, told reporters last week. “If they continue to drop lower, we will have less money to invest in roads, bridges, broadband and R&D.”But business leaders and lobbying groups have made clear in the last weeks similar concerns that Biden’s tax plan would hurt businesses and ultimately offset the progress made by his infrastructure plan.“It will actually obviate all the economic gains we could possibly gain in infrastructure,” Neil Bradley, executive vice-president of the US Chamber of Commerce, told the Washington Post.The US Chamber of Commerce and other business groups have made promises to lobby against the corporate tax increase. While Republicans have been generally supportive of spending on infrastructure, the party is unified in opposition to tax hikes. This means that moderate Democrats, especially Joe Manchin, the party’s most conservative member in the Senate, will be the stars of the debate around a potential increase.Manchin has already said that he would not support an increase to 28%, but said going up to 25% is something he could get behind.“We have to be competitive, and we are not going to throw caution to the wind,” he told a local West Virginia radio station. More

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      Republican ‘attacks’ on corporations over voting rights bills are a hypocritical sham | Robert Reich

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      For four decades, the basic deal between big American corporations and politicians has been simple. Corporations provide campaign funds. Politicians reciprocate by lowering corporate taxes and doing whatever else corporations need to boost profits.The deal has proven beneficial to both sides, although not to the American public. Campaign spending has soared while corporate taxes have shriveled.In the 1950s, corporations accounted for about 40% of federal revenue. Today, they contribute a meager 7%. Last year, more than 50 of the largest US companies paid no federal income taxes at all. Many haven’t paid taxes for years.Both parties have been in on this deal although the GOP has been the bigger player. Yet since Donald Trump issued his big lie about the fraudulence of the 2020 election, corporate America has had a few qualms about the GOP.After the storming of the Capitol, dozens of giant corporations said they would no longer donate to the 147 Republican members of Congress who objected to the certification of Biden electors on the basis of the big lie.Then came the GOP’s wave of restrictive state voting laws, premised on the same big lie. Georgia’s are among the most egregious. The chief executive of Coca-Cola, headquartered in the peach tree state, calls those laws “wrong” and “a step backward”. The chief executive of Delta Airlines, Georgia’s largest employer, says they’re “unacceptable”. Major League Baseball decided to take its annual All-Star Game away from the home of the Atlanta Braves.The basic deal between the GOP and corporate America is still very much aliveThese criticisms have unleashed a rare firestorm of anti-corporate Republican indignation. The Senate minority leader, Mitch McConnell, warns corporations of unspecified “serious consequences” for speaking out. Republicans are moving to revoke MLB’s antitrust status. Georgia Republicans threaten to punish Delta by repealing a state tax credit for jet fuel.“Why are we still listening to these woke corporate hypocrites on taxes, regulations and antitrust?” asks the Florida senator Marco Rubio.Why? For the same reason Willie Sutton gave when asked why he robbed banks: that’s where the money is.McConnell told reporters corporations should “stay out of politics” but then qualified his remark: “I’m not talking about political contributions.” Of course not. Republicans have long championed “corporate speech” when it comes in the form of campaign cash – just not as criticism.Talk about hypocrisy. McConnell was the top recipient of corporate money in the 2020 election cycle and has a long history of battling attempts to limit it. In 2010, he hailed the supreme court’s Citizens United ruling, which struck down limits on corporate political donations, on the dubious grounds that corporations are “people” under the first amendment to the constitution.“For too long, some in this country have been deprived of full participation in the political process,” McConnell said at the time. Hint: he wasn’t referring to poor Black people.It’s hypocrisy squared. The growing tsunami of corporate campaign money suppresses votes indirectly by drowning out all other voices. Republicans are in the grotesque position of calling on corporations to continue bribing politicians as long as they don’t criticize Republicans for suppressing votes directly.The hypocrisy flows in the other direction as well. The Delta chief criticized the GOP’s voter suppression in Georgia but the company continues to bankroll Republicans. Its Pac contributed $1,725,956 in the 2020 election, more than $1m of which went to federal candidates, mostly Republicans. Oh, and Delta hasn’t paid federal taxes for years.Don’t let the spat fool you. The basic deal between the GOP and corporate America is still very much alive.Which is why, despite record-low corporate taxes, congressional Republicans are feigning outrage at Joe Biden’s plan to have corporations pay for his $2tn infrastructure proposal. Biden isn’t even seeking to raise the corporate tax rate as high as it was before the Trump tax cut, yet not a single Republicans will support it.A few Democrats, such as West Virginia’s Joe Manchin, don’t want to raise corporate taxes as high as Biden does either. Yet almost two-thirds of Americans support the idea.The basic deal between American corporations and American politicians has been a terrible deal for America. Which is why a piece of legislation entitled the For the People Act, passed by the House and co-sponsored in the Senate by every Democratic senator except Manchin, is so important. It would both stop states from suppressing votes and also move the country toward public financing of elections, thereby reducing politicians’ dependence on corporate cash.Corporations can and should bankroll much of what America needs. But they won’t, as long as corporations keep bankrolling American politicians. More

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      Republicans claim Biden $2tn infrastructure plan a partisan tax hike

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      Republicans opposed to Joe Biden’s proposed $2tn infrastructure bill claimed on Sunday that it was effectively a partisan tax hike that allocated too much money to electric vehicles and other environmental initiatives.On CNN’s State of the Union, Mississippi governor Tate Reeves was asked if his state could use some of the $100bn Biden proposes to spend on fixing roads and bridges neglected for decades amid gridlock in Washington and paralyzed public spending.Yes, he said. But.“There’s no doubt that Mississippi could use our fair share of $100bn,” Reeves said. “The problem with this particular plan, though, is although the Biden administration is calling it an infrastructure plan, it looks more like a $2tn tax hike plan, to me. That’s going to lead to significant challenges in our economy, it’s going to lead to a slowing GDP … it’s going to lead to Americans losing significant numbers of jobs.”Biden proposes funding his plan by raising corporate tax rates and making it more difficult for corporations to utilize offshore tax shelters.Reeves had other complaints. While Biden proposes to spend billions on roads and bridges, he said, he also proposes to “spend more than that on the combination of Amtrak [railways] and public transit. And what’s even worse, [Biden’s bill] spends $100bn on clean water, which Mississippi could certainly use, but it spends more than that … to subsidize electric vehicles.“That is a political statement. It’s not a statement on trying to improve our infrastructure in America. And so it looks more like the Green New Deal than it looks like an infrastructure plan.”The Green New Deal is a set of policy priorities championed by prominent progressives including Bernie Sanders and Alexandria Ocasio-Cortez as a way to meet looming environmental challenges while boosting the economy and reducing inequality. It is not enacted law or a formal part of Biden’s policy plans. Nonetheless, Republicans from Donald Trump down have seized on it, claiming it represents a determination to take away gas-guzzling cars and even the right to eat meat.On ABC’s This Week, the Missouri Republican senator Roy Blunt asked: “Why would you pass up the opportunity here to focus on roads, bridges, what’s happening underground, as well as above the ground on infrastructure, broadband, all of which wouldn’t be 40% of this package?“There’s more in the package for charging stations for electric vehicles … than there is for roads, bridges and airports and ports. When people think about infrastructure, they’re thinking about roads, bridges, ports and airports.”The Senate minority leader, Mitch McConnell, said this week he would “fight them every step of the way because I think this is the wrong prescription for America. That package that they’re putting together now, as much as we would like to address infrastructure, is not going to get support from our side.”Democrats could attempt to pass the package using budget reconciliation, a procedure that allows for a simple Senate majority rather than 60 votes. But even if successful it would mean abandoning portions of the plan that do not impact taxes and spending.Biden has repeatedly emphasized the need for bipartisanship. Politicians from both sides have claimed willingness to reach across the aisle.Reeves told CNN he “believes we can come up with a plan” but opposes the tax-funded price-tag. Blunt said it was “very unlikely” Republicans would vote to reverse Trump’s 2017 corporate tax cuts, suggesting instead “new funding sources, figuring out how if you’re going to spend all this money on electric vehicles, which I think is part of the future, we need to figure out how electric vehicles pay for using the system just like gas-powered vehicles have always paid for it with a gas tax.”Pete Buttigieg, Biden’s transportation secretary, vowed to work with Republicans.“I’ve got a lot of respect for Senator Blunt,” he told ABC, “but I’m going to work to try to persuade him that electrical vehicle charging infrastructure is absolutely a core part of how Americans are going to need to get around in the future, and not the distant, far off future, but right now.Asked if it was “a realistic prospect to expect Republicans are going to come around”, Buttigieg said: “I think it can be. I’m having a lot of conversations with Republicans in the House and Senate who have been wanting to do something big on infrastructure for years. We may not agree about every piece of it, but this is one area where the American people absolutely want to see us get it done.”The Republican Mississippi senator Roger Wicker told NBC’s Meet the Press: “I’m all for working with the administration on an infrastructure bill. And let me tell you, I think I can work with Pete Buttigieg. I spoke to him the day he was nominated. We’ve been trading phone messages for the last three or four days in an effort to talk about this bill. I think Pete and I could come up with an infrastructure bill.”But Wicker also brought out the stumbling block to such thoughts of progress.“What the president proposed this week is not an infrastructure bill,” he said. “It’s a huge tax increase, for one thing.” More

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      Win the Amazon union fight and we can usher in a new Progressive Era | Robert Reich

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      The most dramatic change in American capitalism over the last half-century has been the emergence of corporate behemoths like Amazon and the shrinkage of labor unions. The resulting imbalance has spawned near-record inequalities of income and wealth, corruption of democracy by big money and the abandonment of the working class.All this is coming to a head in several ways.Over the next eight days, Amazon faces a union vote at its warehouse in Bessemer, Alabama. If successful, it would be Amazon’s first US-based union in its nearly 27-year history.Conditions in Amazon warehouses would please Kim Jong-un – strict production quotas, 10-hour workdays with only two half-hour breaks, unsafe procedures, arbitrary firings “and they track our every move”, Jennifer Bates, a worker at Bessemer, told the Senate budget committee on Wednesday.To thwart the union drive, Amazon has required Bessemer workers to attend anti-union meetings, warned workers they’d have to pay union dues (wrong – Alabama is a “right-to-work” state that bars mandatory dues), and intimidated and harassed organizers.Why is Amazon abusing its workers?The power shift can be reversed – but only with stronger labor laws, tougher trade deals and a commitment to antitrustThe company isn’t exactly hard-up. It’s the most profitable firm in America. Its executive chairman and largest shareholder, Jeff Bezos, is the richest man in the world, holding more wealth than the bottom 39% of Americans put together.Amazon is abusing workers because it can.Fifty years ago, General Motors was the largest employer in America. The typical GM worker earned $35 an hour in today’s dollars and had a major say over working conditions. Today’s largest employers are Amazon and Walmart, each paying about $15 an hour and treating workers like cattle.The typical GM worker wasn’t “worth” more than twice today’s Amazon or Walmart worker and didn’t have more valuable insights about how work should be organized. The difference is GM workers a half-century ago had a strong union, summoning the collective bargaining power of more than a third of the entire American workforce.By contrast, today’s Amazon and Walmart workers are on their own. And because only 6.4% of America’s private-sector workers are unionized, there’s little collective pressure on Amazon or Walmart to treat their workers any better.Fifty years ago, “big labor” had enough political clout to ensure labor laws were enforced and that the government pushed giant firms like GM to sustain the middle class.Today, organized labor’s political clout is minuscule by comparison. The biggest political players are giant corporations like Amazon. And what have they done with their muscle? Encouraged “right-to-work” laws, diluted federal labor protections and kept the National Labor Relations Board understaffed and overburdened.They’ve also impelled government to lower their taxes (Amazon paid zero federal taxes in 2018); extorted states to provide them tax breaks as condition for locating facilities there (Amazon is a champion at this game); bullied cities where they’re headquartered (Amazon forced Seattle to back down on a plan to tax big corporations to pay for homeless shelters); and wangled trade treaties allowing them to outsource so many jobs that blue-collar workers in America have little choice but to take low-paying, high-stress warehouse and delivery gigs.Oh, and they’ve neutered antitrust laws, which in an earlier era would have had companies like Amazon in their crosshairs.This decades-long power shift – the emergence of corporate leviathans and the demise of labor unions – has resulted in a massive upward redistribution of income and wealth. The richest 0.1% of Americans now has almost as much wealth as the bottom 90% together.Corporate profits account for a growing share of the total economy and wages a declining share, with multi-billionaire executives and investors like Bezos taking home the lion’s share.The power shift can be reversed – but only with stronger labor laws, tougher trade deals and a renewed commitment to antitrust.The Biden administration and congressional Democrats appear willing. The House has just passed the toughest labor reforms in more than a generation. Biden’s new trade representative, Katherine Tai, promises trade deals will protect American workers rather than exporters. And Biden is putting trustbusters in critical positions at the Federal Trade Commission and in the White House.I’d like to think America is at a tipping point similar to where it was some 120 years ago, when the ravages and excesses of the Gilded Age precipitated what became known as the Progressive Era. Then, reformers reversed the course of American capitalism for the next 70 years, making it work for the many rather than the few.Today’s progressive activists – in Washington, at Amazon’s Bessemer warehouse and elsewhere around the nation – may be on the verge of doing the same. More

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      Bidenomics beats Reaganomics and I should know – I saw Clintonomics fail | Robert Reich

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      A quarter-century ago, I and other members of Bill Clinton’s cabinet urged him to reject the Republican proposal to end welfare. It was too punitive, we said, subjecting poor Americans to deep and abiding poverty. But Clinton’s political advisers warned that unless he went along, he would jeopardize his reelection.That was the end of welfare as we knew it. As Clinton boasted in his State of the Union address to Congress that year: “The era of big government is over.”Until Thursday, that is. Joe Biden signed into law the biggest expansion of government assistance since the 1960s – a guaranteed income for most families with children, raising the maximum benefit by up to 80% per child.As Biden put it in his address to the nation, as if answering Clinton: “The government isn’t some foreign force in a distant capital. No, it’s us, all of us, we the people.”As a senator, Biden supported Clinton’s 1996 welfare restrictions, as did most Americans. What happened between then and now? Three big things.First, Covid. The pandemic has been a national wake-up call on the fragility of middle-class incomes. The deep Covid recession has revealed the harsh consequences of most Americans living paycheck to paycheck.For years, Republicans used welfare to drive a wedge between the white working middle class and the poor. Ronald Reagan portrayed black, inner-city mothers as freeloaders and con artists, repeatedly referring to “a woman in Chicago” as the “welfare queen”.Trump replaced economic Reaganism with narcissistic grievances, claims of voter fraud and cultural paranoiaStarting in the 1970s, women had streamed into paid work in order to prop up family incomes decimated by the decline in male factory jobs. These families were particularly susceptible to the Republican message. Why should “they” get help for not working when “we” get no help, and we work?By the time Clinton campaigned for president, “ending welfare as we knew it” had become a talisman of so-called New Democrats, even though there was little or no evidence that welfare benefits discouraged the unemployed from taking jobs. (In Britain, enlarged child benefits actually increased employment among single mothers.)Yet when Covid hit, a new reality became painfully clear: public assistance was no longer just for “them”. It was needed by all of “us”.The second big thing was Donald Trump. He exploited racism, to be sure, but also replaced economic Reaganism with narcissistic grievances, claims of voter fraud and cultural paranoia stretching from Dr Seuss to Mr Potato Head.Trump obliterated concerns about government give-aways. The Cares Act, which he signed into law at the end of March 2020, gave most Americans checks of $1,200 (to which he calculatedly attached his name). When this proved enormously popular, he demanded the next round of stimulus checks be $2,000.But Trump’s biggest give-away was the GOP’s $1.9tn 2018 tax cut, under which benefits went overwhelmingly to the top 20%. Despite promises of higher wages for everyone else, nothing trickled down. Meanwhile, during the pandemic, America’s 660 billionaires – major beneficiaries of the tax cut – became $1.3tn wealthier, enough to give every American a $3,900 check and still be as rich as they were before the pandemic.The third big thing is the breadth of Biden’s plan. Under it, more than 93% of the nation’s children – 69 million – receive benefits. Incomes of Americans in the lowest quintile will increase by 20%; those in the second-lowest, 9%; those in the middle, 6%.Rather than pit the working middle class against the poor, this unites them. Some 76% of Americans supported the bill, including 63% of low-income Republicans (a quarter of all Republican voters). Younger conservatives are particularly supportive, presumably because people under 50 have felt the brunt of the four-decade slowdown in real wage growth.Given all this, it’s amazing that zero Republican members of Congress voted for it, while 278 voted for Trump’s tax cuts for corporations and the rich.The political lesson is that today’s Democrats – who enjoy popular vote majorities in presidential elections (having won seven of the past eight) – can gain political majorities by raising the wages of both middle class and poor voters, while fighting Republican efforts to suppress the votes of likely Democrats.The economic lesson is that Reaganomics is officially dead. For years, conservative economists argued that tax cuts for the rich create job-creating investments, while assistance to the poor creates dependency. Rubbish.Bidenomics is exactly the reverse: Give cash to the bottom two-thirds and their purchasing power will drive growth for everyone. This is far more plausible. We’ll learn how much in coming months. More

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      Bernie Sanders: US sick of subsidizing 'starvation wages' at Walmart and McDonald's

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      US taxpayers should not be “forced to subsidize some of the largest and most profitable corporations in America”, Bernie Sanders told a Senate hearing on Thursday.As Congress debates the first rise in the minimum wage in over a decade, the Vermont senator said he had “talked to too many workers in this country who, with tears in their eyes, tell me the struggles they have to provide for their kids on starvation wages” even as the chief executives of companies including McDonald’s, Walmart and others take home multi-million dollar pay packages.Executives from Walmart and McDonald’s were invited to the hearing, titled Should Taxpayers Subsidize Poverty Wages at Large Profitable Corporations?They declined to appear.The senators heard from low-wage workers from McDonald’s and Walmart. Terence Wise, a McDonald’s employee from Kansas City, Missouri, said his low pay had led to his family becoming homeless.“My family has been homeless despite two incomes. We’ve endured freezing temperatures in our purple minivan. I’d see my daughter’s eyes wide open, tossing and turning, in the back seat. Try waking up in the morning and getting ready for work and school in a parking lot with your family of five,” said Wise.“That’s something a parent can never forget and a memory you can never take away from your children. You should never have multiple jobs in the United States and nowhere to sleep.”Sanders cited a government accountability office (GAO) report that found nearly half of workers who make less than $15 an hour rely on public assistance programs that cost taxpayers $107bn each year.Walmart spent $8.3bn on stock buybacks in 2017, the Walton family, the chain’s founders, are worth over $200bn and have increased their wealth by $50bn since the start of the pandemic, said Sanders. And yet the company “cannot afford to pay its workers at least $15 an hour”.“If Walmart thinks they’re going to avoid answering that question because they’re not here today, they’re deeply mistaken. The American people are sick and tired of subsidizing the wealthiest family in America,” said Sanders.The hearing comes at a tense moment for minimum wage advocates. Joe Biden campaigned on a pledge to increase the minimum wage to $15 an hour from its current level of $7.25. The proposal is part of his $1.9tn Covid stimulus package.But that package faces stiff opposition from in the Senate with the Republican minority set to vote against it and some Democrats opposing the wage rise.A recent Congressional Budget Office concluded 27 million Americans would be affected by an increase in the minimum wage to $15, and that 900,000 would be lifted out of poverty. But the CBO also said the increase would lead to 1.4m job losses and increase the federal budget deficit by $54bn over the next 10 years. The Economic Policy Institute, and others, have called the report “wrong, and inappropriately inflated”.Republican Senator Mike Bruin told the hearing that an increase would be unfair on states with a lower cost of living and would hurt small businesses.“We need to slow it down,” he said. “The main result is you are going to hurt Main Street,” he said. More