The first days of the Biden presidency has raised a few eyebrows with some sweeping changes in the economic field. In this interesting article ‘Bidenomics, explained‘ an analysis is proposed around “creating a two-track economy – a dynamic, internationally competitive innovation sector, and a domestically focused engine of mass employment and distributed prosperity“.
In any case, all commentators agree that the Biden economic approach is singularly different from the liberal and deregulating approach applied since Reagan. A number of measures include funding family and child care, minimum wage substantial increase, and building and upgrading national infrastructure. This leads to supporting and developing a very national, non exportable economy, generating high level of employment while at the same time supporting a smaller export-orientated economy based on technology and knowledge.
The point being that “this [high technology] sector will generate a lot of productivity and a lot of export revenue, it is not going to employ most Americans. Instead, most Americans will work in less competitive, domestically focused sectors — selling houses to each other, pulling each other’s wisdom teeth, preparing each other’s food, bagging each other’s groceries, taking care of each other in their old age. That vast domestic sector will distribute the income generated by the highly competitive knowledge sectors“
It will be quite interesting to watch how this approach unfolds and whether a new equilibrium can be reached in terms of economic redistribution. In any case it is quite a logical approach to try to address major current issues in terms of globalization impact and increase of inequality.
