Bidenomics

The COVID-19 pandemic has created a devastating economic recession that has forced unprecedented levels of fiscal and monetary policy. Economists are beginning to rethink the economy in ways that could revolutionize the field. However, the application of macroeconomics is subject to governments and all the political turmoil that comes attached to them. President-elect Joseph Biden, who will soon lead the largest economy in the world, has demonstrated an interest in a large relief package focused on supporting working families and small businesses. Here are a few more economic policies we can expect from a Biden administration.

The pandemic has created a reverse Robin Hood-like scenario where the top 1% have seen exponential increases in their wealth while the lowest earners have faced mass job losses, evictions, and disproportionate COVID-19 deaths and infections. This has raised existing tensions between the working class and the extraordinarily rich, putting more pressure on Biden to wield his executive authority to provide relief for working families through executive policies such as student loan forgiveness. 

Biden’s treasury secretary choice, Janet Yellen, is undoubtedly one of his best cabinet appointments yet. Yellen has an unmatched level of experience given her time as chair of President Clinton’s Council of Economic Advisors and as chair of the Federal Reserve Bank during the economic recovery that followed the 2008 financial crisis. In terms of her policy, Yellen is considered a “dove” on Wall Street, meaning she tends to focus more on unemployment over inflation, a policy that will overwhelmingly benefit working families who have lost their jobs during the recession. This does not mean that Yellen will push the inflation rate up to numbers significant for ordinary families, it simply means that there will be a priority on getting Americans back to work instead of sacrificing hundreds of thousands of jobs in order to reduce the inflation by incredibly small amounts. Yellen would also make history by being the first woman to ever serve as treasury secretary, falling in line with Biden’s commitment to have the most diverse cabinet in history. Given her vast experience and dedication to helping ordinary Americans, It should be no surprise that Yellen’s appointment has managed to satisfy both progressives and conservatives.

Unemployment expert and Labor Economist Janet Yellen at a hearing.
Jacquelyn Martin/AP

The rest of Biden’s major economic proposals, such as his tax plan, are completely up to the Senate. If Democrats do not succeed in securing both of Georgia’s runoff Senate seats in January, there is little to no chance of any of Biden’s economic policies being implemented for the next two years. Senate majority leader Mitch McConnel has exhibited a complete lack of care for working families and the economy by eliminating any chance of stimulus package negotiations with Democrats. 

Despite the uncertain state of the Senate, President-Elect Biden, through his policy proposals and cabinet appointments, has demonstrated a commitment to a united country and a swift economic recovery. We can finally expect sound economic policies that will accelerate our economy towards recovery by making it serve the interests of the working class, not just the top 1%.

Title Image: Chip Somodevilla / Getty

About the author

Damjan Nastic

Hello, and welcome to my blog! I'm Damjan Nastic, an economics major aspiring to encourage democratic participation amongst my fellow students through this page. I hope my page can offer a different perspective on pressing issues throughout the world.

If you have any questions, please feel free to email me at [email protected]!

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10 Comments

  • So concise, Damjan! It’s like getting the Cliff Notes for our economy’s near future under Biden. In just one sentence, you’ve managed to explain why it’s vital that dems secure the two open Senate seats.

  • Hello Damjan, it’s so awesome to hear from young people like you, because I felt related. I think it it true that the lowest earners are those that suffered this disease the most, and the government should do something to help them get through this pandemic. You wrote very detail about how it will done and what plans the government will process, which help me understand more of what’s going with the political. Great blog!

  • Corona Virus is something that not only seriously affects the health of people, but it also contributes greatly to the economic downturn of the world. America, a country with the leading economy, cannot avoid this influence. Through the article, I learned some of the policies that President Biden will and applies to help the economy again. One of the main policies was to appoint Janet Yellen as treasury secretary. Because she had a lot of experience in fighting the economic crisis in 2008 and she focuses mainly on the unemployment rate. I think this is a pretty good idea. For now low numbers of jobs across the US are at an alarming rate due to Covid shutdowns. Many families have been hit hard by unemployment. I fully agree and support the policy of President Biden and Ms. Janet Yellen. I think the US economy will return soon next year.

  • Hey Damian,
    I want to start of by saying that I really like how clean this blog page is, like it’s actually amazing. Also I want to say I really like the article that you wrote, I actually knew nothing about Yellen to be honest, but now I at least now the basics of what she stands for. Also days leading up the senate election in Georgia are definitely going to be interesting, because whoever win gets their way.

  • Hi Damjan! It is very important to know who Joe Biden is choosing for the cabinet appointments because this is our future. We must understand who we are voting for. Just by reading, this helps me understand more about politics because it can be confusing. Well written and keep up the great work! Best of luck!

  • Hi Damjan! You went into detail of how economics are now and what it will look like in the future once Biden becomes president. How the top 1% has had an increase in their revenue/wealth from the pandemic while others are facing great financial difficulties and things seem to be getting worse for them. You also pointed out what Biden plans on focusing on like offering student loan forgiveness if we win Georgia in January. Also like that you explained why you thought his treasury secretary of choice was one of the best ones yet from her past experience and I couldn’t agree more. Great blog!

  • I hope President Biden can do that because California has shut down again, and the stimulus check has not been passed or denied. 1,200 dollars is not a big due for people who live in Los Angeles as the lowest rent here is more than 3,000 dollars. However, if everyone had that money, it was better than nothing.

  • Hello Damjan! Great to hear from a familiar name! Great job of wrapping up this crazy year into a informational blog! I love the detail put into your blog really explaining what is going to happen and how. This really helped learn more of what’s going on today just by the summary you put out. Great work!

  • Hey Damjan!
    First off, I really like what you’ve created here! I used to run a website of my own that was focused on financial news but then switched to a more satirical focus on the matter. I really agree that what we’ve largely seen largely has been a redistribution of wealth and those who benefited the most in terms of return to their existing net worth were those making minimum wage and qualified for unemployment whilst “unemployment on steroids” was active and people saw an additional $600 weekly allowance. I used to be an economics major and was also extremely happy when Biden announced Yellen taking role of treasury secretary, throughout this pandemic I’ve actually been listening very closely to Yellen and she was a voice of reason amidst a complete panic in the market. Can’t wait to read more from your site and wish you the best in its progression.

  • Hello Damjan,

    This was a great read. I really hope we can begin to see more equity in our country. This pandemic and your blog made me further realize how reliant we are on corporations for our lives. The lower and middle class deserve more help, and the perfect way to help is by student loan forgiveness. This will encourage other not to mooch off of our government, but it will enable a lot of us to actually obtain an affordable education.

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