It took two and a half years for Fitch Ratings to blame “an erosion of governance” for doing its part in threatening the U.S. economy, but when the Wall Street economic arbiters finally lowered America’s credit rating the message was clear: the Trump-led, MAGA-driven Jan.6, 2021 insurrection was bad for business.
By comparison, it did not take the economic forecasters nearly as long to assess the cataclysmic predecessor to the insurrection, COVID-19. The pandemic revealed the vulnerability of the supply chains, overwhelmed urban and suburban hospitals and rest homes, exposed the shortage of rural hospitals, threatened air and ground mass transportation, and introduced “super-spreader events” into the lexicon.
What took a little while longer to uncover was the fatal response to the pandemic, which included initial denial of the threat by Trump and his allies even though most recognized Covid was indeed a clear and present danger to the American people and economy. Nothing demonstrated the deceit and incompetence of the initial pandemic response more than the GOP pandemic-deniers, especially those that were later discovered to have sold their stocks after being warned of the threat during a classified briefing.
However, the crowning moments of ineptitude and perhaps criminality came from the Trump White House itself, as Trump initially opposed a national coronavirus strategy because he feared it would help “Blue States.” Trump then prescribed insane and harmful remedies to the American people to fight the virus, including injecting disinfectant. Finally, Trump and his son-in-law-turned-henchman Jared Kushner were caught giving away free coronavirus money to their pals and cronies (a massive fraud investigation into Covid money is underway and some of the money is expected to be recovered), while then-Treasury Secretary Steve Mnuchin worked to keep the incoming Biden administration from having access to coronavirus response money.
There is a lesson shared and taught by both the pandemic and the Jan. 6 insurrection: the inept initial response to a deadly virus, and Trump’s attempts to overthrow free and fair elections were toxic for the U.S. economy.
MAGAnomics were bad business and have turned out to be very bad for business.
The forecasts for escaping the economic and legal disasters left by MAGAnomics were bleak, with some economists predicting dark years ahead with recession, declines in the financial markets and job losses that would not easily recover. As hard as it was for him to win the election, for President Joe Biden the more difficult task of cleaning up the mess was ahead.
Biden’s approach to all the gloom has been practical. He and his brain trust have pursued the path that had saved America from economic peril since 1932: make smart investments in people, their businesses, their roads and buildings, and their access to prescient and valuable information, and offer workers the best training and education to fit into next-level jobs of the fast-coming future. Finally, add a differentiator into the mix: promote and incentivize competition.
The three-pronged approach has manifested itself as the three pieces of legislation signed by Biden most credited with pulling the country out of the malaise of MAGAnomics: the Inflation Reduction Act, the Chips and Science Act and the Infrastructure Investment and Jobs Act. The results so far are noteworthy:
13.2 million new jobs since becoming president, including 750,000 manufacturing jobs
Wages are up across the board
Biggest surge in factory construction and returning manufacturing from overseas since the start of over-globalization in the 1980s saw much of Wall Street and American corporations sell out American workers and communities for the low wages and hazardous environmental conditions in countries like China
The S&P 500 has climbed about 16% since Biden's inauguration
There is more work to be done, but inflation is slowly moving downward
While workers and middle class families have been most vulnerable to the top-heavy scourge of MAGAnomics, the pro-labor Biden policies have contributed to an economy that is benefiting workers beyond those covered by collective bargain agreements. Biden’s bottom-up and middle-out approach clearly isn't hurting the richest “one percenters” that have continued to grow their wealth during his administration.
The epic fight for democracy and the protection of the individual rights of all Americans is clear, but make no mistake, the battle to protect the American economy from that same tyranny must be fought with the same vigor and resolve.
This piece was written by Ken Bazinet. Ken is a respected, longtime national political reporter and freelance writer based in rural Maryland.
Click here to help Left of Center continue the hard work of helping Democrats win elections.