This is how Democrats get shellacked in 2022
In the 2010 midterms, Democrats were routed because they did not completely fix the Great Recession. Obama economic adviser Larry Summers deliberately lowballed the Recovery Act stimulus in 2009, and Obama himself pivoted to austerity by early 2010. As a result, unemployment was nearly 10 percent on Election Day that year, and the Democrats were swept at the federal and state levels. In the words of Obama, it was a "shellacking."
Biden adviser Ted Kaufman, who is in charge of Joe Biden's transition team, signaled in comments to the Wall Street Journal that a Biden administration may make the exact same mistake again. "When we get in, the pantry is going to be bare," he said. "When you see what Trump’s done to the deficit … forget about COVID-19, all the deficits that he built with the incredible tax cuts. So we’re going to be limited."
As a factual matter, Kaufman is grotesquely mistaken on at least two levels. The economy will still be in a deep hole next year, and I have argued before, so long as the economy is below capacity, the American government can borrow without limit. The pantry is not "bare" — on the contrary, bond markets are howling for the government to issue more debt so there will be a goodly supply of safe assets. Second, even if one is worried about the national debt, it is self-defeating to try to cut it down before full employment is reached. As none other than Larry Summers demonstrated in a paper with economist Brad DeLong after his Recovery Act faceplant, borrowing to stimulate during a recession literally more than pays for itself by preventing economic damage and boosting future tax revenue.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The most important fact about economic policy over the last 12 years, learned at a terrible cost in both Europe and the U.S., is this: Austerity during a recession makes everything worse.
All this is truly unfortunate to hear from Kaufman, who is one of the more progressive advisers on Biden's team, and served well in Biden's Senate seat for two years attacking Wall Street corruption. But unless this kind of thinking is stamped out immediately, a Biden administration will make Democrats lose the 2022 midterms just like they did in 2010.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Create an account with the same email registered to your subscription to unlock access.
Ryan Cooper is a national correspondent at TheWeek.com. His work has appeared in the Washington Monthly, The New Republic, and the Washington Post.
-
The hunt for Planet Nine
Under The Radar Researchers seeking the elusive Earth-like planet beyond Neptune are narrowing down their search
By Chas Newkey-Burden, The Week UK Published
-
Magazine interactive crossword - April 26, 2024
Puzzles and Quizzes Issue - April 26, 2024
By The Week US Published
-
Magazine solutions - April 26, 2024
Puzzles and Quizzes Issue - April 26, 2024
By The Week US Published
-
Arizona court reinstates 1864 abortion ban
Speed Read The law makes all abortions illegal in the state except to save the mother's life
By Rafi Schwartz, The Week US Published
-
Trump, billions richer, is selling Bibles
Speed Read The former president is hawking a $60 "God Bless the USA Bible"
By Peter Weber, The Week US Published
-
The debate about Biden's age and mental fitness
In Depth Some critics argue Biden is too old to run again. Does the argument have merit?
By Grayson Quay Published
-
It's not really about Biden's brain — unless it is
Talking Points Depending on who you ask, the renewed focus on the president's mental acuity is an election-year distraction, a legitimate point of concern, and sometimes both
By Rafi Schwartz, The Week US Published
-
The politics of music: should political rallies use well-known songs?
Talking Point The Smiths star Johnny Marr is latest musician to object to use of his music at a Donald Trump rally
By Sorcha Bradley, The Week UK Published
-
How would a second Trump presidency affect Britain?
Today's Big Question Re-election of Republican frontrunner could threaten UK security, warns former head of secret service
By Harriet Marsden, The Week UK Published
-
'Rwanda plan is less a deterrent and more a bluff'
Instant Opinion Opinion, comment and editorials of the day
By The Week UK Published
-
Cop 28 verdict: are climate summits working?
Talking Point Global leaders are not fully committed to averting the climate crisis, say critics
By The Week Staff Published