The Wrongologist

The Daily Escape:

Jay Peak, VT – photo by Alan Baker

Today, Wrongo listened to a NYT podcast that tried to dissect “Republican Populism”. Based on the American Rescue Plan that is about to become law, no one should EVER again say that the GOP are populists, except in the demagogic sense.

Long-time blog reader David P. called yesterday to alert Wrongo to Steve Rattner’s appearance on Morning Joe. Wrongo never watches morning television, so he would have missed the charts Rattner used to compare Trump’s Tax Cuts and Jobs Act to Biden’s American Rescue Plan. They are important:

The two bills are nearly the same size, but Trump’s plan on the left above shows that 85% of the benefits from Trump’s plan were tax cuts for businesses and people making more than $75k/year. Just 16% went to people making less than $75k.

Biden’s American Rescue Plan (on the right above) gives 52% of its benefits to individuals making LESS than $75k, of which, 8% is in the form of tax cuts for dependent children. Biden’s plan also spends $1.75 Trillion on attempting to return the American economy to pre-pandemic normalcy.

Rattner’s next slide shows where each plan’s benefits went by income level:

This bar chart divides America by income bracket. The blue bars are Biden’s plan, and the red bars are Trump’s plan. Starting from the left, Biden’s plan provides 23% of the overall benefit to people in the bottom 20% income, while Trump’s plan gave them just 1%. Instead, Trump’s plan gave 65% of the benefits to the top 20%, while Biden’s gives them just 11%, mostly in the form of the $1,400 checks.

It’s easy to see which bill has helped the rich, and which did not. A key Republican talking point in the past few weeks was that the American Rescue plan isn’t focused enough on the pandemic. Yet when Trump and the Republicans had their chance, they showed themselves to be the same old plutocrats.

A key difference between the two Parties:

The CARES Act was a Republican accident. They got scared, and when the Republicans are scared, they’ll flirt with doing the right thing for self-preservation.

The America Rescue plan is a big win for Biden and the Democrats. When signed, it gives more than just cash to American families. It makes Obamacare more affordable for more people. It  provides $27 billion in rental assistance and much-needed help to cities and states, and it establishes a child allowance of $3000-$3600, which could become permanent down the road.

It doesn’t contain the $15 an hour minimum wage provision, but compared to previous big pieces of Democratic legislation, like Clinton’s 1993 tax bill or Obama’s 2009 ACA, despite the American Rescue plan’s huge price tag, it passed relatively easily. And just like those two earlier bills, no Republicans voted for it.

Let’s hope that the media continue to describe all of the things Republicans hate in the bill. Who gets what and when, and how, down to the last Biden buck. That they continue to talk about Republican consternation about the deficit and how we pay for it all.

Republicans today have zero ideology. For decades, tax cuts were their preferred economic tool. Tax cuts also caused revenue shortfalls for the government, who would then be unable to offer more safety net programs for the middle and working classes. A Republican delight!

Progressive Democrats believed that putting money in the hands of working people and the poor would be a better economic stimulus because it provided material support to people who needed it.

That’s Biden’s plan.

Progressives want to make things better; conservatives want to maintain the status quo. Progress is usually a good thing, but it isn’t a baseline premise for both Parties.

Reagan turned “liberal” into an epithet. Modern Republicans are doing the same with “progressive.” That will be a hard sell if progressives are bringing jobs and a measure of economic security to hometowns across America, while all the Republicans have to offer is “Look what the progressives did to Mr. Potato Head!”

They will always have the cultural issues, real or imagined, to run on.

But on economic issues, the whole “progressive wish list” compliant from the Republicans is pretty weak tea, when they’re unwilling to vote for anything.

Biden and the Democrats are making a big net on progressive, Democratic ideology. It will be exciting to see how it works. And all of it is going to be popular.