In the next few weeks, a lot will be written about President Biden’s American Jobs Plan Act. This $2.3 trillion bill is omnibus legislation intended to address a variety of national problems. These problems include our crumbling infrastructure, climate change, underpayment of workers who care for seniors, and the need to be more competitive with China. To pay for solutions to these problems, the bill also raises taxes for “big corporations” and for “wealthy individuals.”
A draft of the bill does not yet appear to be available. When it surfaces, it will be yet another 800-page monster, the type of bill that our elected representatives tend to vote for or against without reading all of it. And because Republicans are already lined up against the bill, primarily because of the size of the spending and the imposition of new taxes, civil, bipartisan debate of the type that can lead to improved legislation is unlikely to occur.
Democrats are likely to use a legislative process known as “reconciliation” to try to pass the bill in the Senate despite the 50-50 split between the parties. It is hard to fault Majority Leader Schumer for resorting to this approach given no signs of any Republican compromise. The reconciliation process, however, was not intended to facilitate the passage of massive new programs. As a result of the availability of this “legislative shortcut,” incentives for Democrats to work with Republicans are eliminated or at least reduced. Schumer’s likely decision to use reconciliation also will “justify” Republicans simply voting against the bill and hoping that once it gets enacted, problems with it will surface.
“Problems” are likely if a bill of the size and complexity of Biden’s proposal, including dozens of new programs, is enacted. It is hard to get dozens of new spending programs “right” when they are all enacted and funded at the same time. The new spending in the bill could also trigger inflation. If it does, will additional “emergency” legislation be needed to clean up the mess? And what if Republicans are right that raising corporate taxes will decrease rather than increase American competitiveness?
Based on what we know now about what is in the bill and how Congress will consider it, asking questions is warranted. Not asking questions is irresponsible. Because of the size of the bill, which will be followed by a third trillion dollar plus bill, asking questions is imperative. And if acceptable answers are not found, changes should be made, or enactment of the legislation should be reconsidered.
Dozens of questions should be explored regarding the bill. Here are a few examples:
At the top of the list is “Will this bill trigger inflation?” There are no simple answers here. Modern Monetary Theory, or MMT, suggests that it may be possible to address pressing priorities such as climate change, infrastructure, and social justice and not trigger inflation. Others are not so sure. Reducing the risk of igniting inflation means reducing the cost of the bill or finding trillions of dollars in new taxes. Given the unlikelihood of enactment of the full Biden tax plan, a reasonable compromise might be to pare down the bill, something progressives will not like.
Do the electric vehicle provisions in the bill, with a price tag of $174 billion, make sense? The bill calls for more funding to promote electric cars than to repair bridges and roads. ($115 billion). Given that multiple manufacturers already are aggressively entering the electric car market, do we need the Federal government to build charging stations? The summary of Biden’s proposal includes the point that workers building the cars must receive a good wage. How do you make that happen? The bill also states that low-income people should have the wherewithal to drive electric cars. Do you force manufacturers to sell these electric cars at affordable prices or subsidize them? In either case, does this make sense given the entire car market already is heading towards electrification?
Other questions relate to the diverse programs that look like campaign promises being fulfilled. A case in point: Provisions in the bill proposing $400 billion to support improved elder care. A major part of this proposal is to raise wages for home health workers serving seniors. While it is unclear how the bill would accomplish this other than by giving states and local governments money to subsidize wages, the bill also requires that home health workers get the right to union organization. Many of us support unions, but the summary of the bill makes it sound as though these workers might not have a choice not to join a union. That may not be good for the workers, but why pick a unionization fight in a spending bill? Maybe this fight should have been fought elsewhere?
Mark Twain once said, “He who asks is a fool for five minutes, but he who does not ask remains a fool forever.” I do not want to feel foolish if the American Jobs Plan proves to be a mistake. Support for repairing our infrastructure, addressing climate change, and promoting racial and social equity should not be mistaken as a license to pass massive legislation without doing everything possible to “get it right.”
J.E. Dean of Oxford is a retired attorney and public affairs consultant writing on politics, government, domestic policy, and occasionally goldendoodles.
Tim Abeska says
This article raises many good points. It is better to get this done right rather than fast, especially since the ongoing Executive and Legislative malpractice of spending money we do not have continues unabated. We cannot borrow money indefinitely. Politicians routinely say that new taxes will pay for programs or that the deficit will eventually be reduced but that rarely actually happens. Moreover, government programs are ripe for fraud and abuse, which no politician seems willing to address in a meaningful way.
John Dean says
Thank you for reading the piece and for commenting.
Bill Anderson says
President Biden needs to slow down and pace himself with his proposals, including the proposals discussed here by Mr. Dean. After all, we are still inside the initial 100 days of Mr. Biden’s presidency and he has nearly four years remaining in this term. There is no need to rush to destroy our nation.
John Dean says
Thank you for commenting. I agree.
Deirdre LaMotte says
No, the nation had been destroyed after four years of ineptitude and cronyism. How refreshing
having love of our nation and experience in the Oval.
Stephen Schaare says
Were you at all troubled when President Joseph Robinette Jr. told the “big whopper” last week that the voting hours in Georgia had been changed to closing at 5 pm? Press Sec Jen Psaki was asked if the President knew the change in hours had never been proposed or enacted. She refused to answer the question.
Are you good with this? Thank you.
Deirdre LaMotte says
Really? You want to compare that to the most despicable family ever to be in the White House? Wow, keep digging ‘cos you’re on the wrong side of everything right.
And I mean “morally correct”! Go ahead and defend the ratty mantle of Trumpism; the neanderthal, socially anxious, need a place to hide
Stephen Schaare says
Of course, I never expected a direct answer to my question, it is the way of the left.
You seem so enraged and irrational.Certainly you have no problem with the moral debacle at our southern border. Thank you for the kind words.
Patty Heaps says
Joe’s lies would be laughable if they weren’t so dangerous – and the media plays right along. When others accuse the previous administration of ineptitude, I have to wonder what they are seeing today. The lies about Georgia’s voting law are beyond the pale and again, the media plays along. To encourage corporations to make decisions based on these lies is especially egregious. While they can pat themselves on the back for their progressiveness, the financial consequences hurt everyone. A forgiveness of sanctions on Iran who had decided to break them anyway, sensing the weakness in this White House. A border crisis which continues to worsen – funny how it’s not “kids in cages” anymore – with the narrative of a more humane treatment while the whole country can see the “cages”. Ruling by Executive Order (is it over 50 now?), including today’s gun control measures which will do nothing to stop “gun violence” or crime. Following what is happening in Baltimore City schools, none of those criminals could read the directions to make a “ghost gun”!
But no mean tweets, right?
Deirdre LaMotte says
Why is Georgia passing voter laws when everyone, yes, everyone knows the threat of voter fraud is non-existent? It is because people are voting, minorities and the poor, and exercising their Constitutional right. The GOP knows that without limiting voting the Party is toast.Every investigation found no fraud or irregularities; even Barr’s DOJ found nothing that would have altered the 2020 election. Given 2020 gave us the most secure election in our history, why the sudden concern with “election integrity”? It is because the GOP wants to change the rules so that they can change election outcomes they don’t like.
How sad and un-American is that? Well, welcome to fascism and it’s insidious reemergence with the American far right. They will be defeated just like the 1930’s fascist because it is undemocratic and our evolving society rejects this disgusting ideology.
Chris Gordon says
President Biden has assembled an excellent team of professionals. I’m inclined to trust their judgment on matters like this. Who else is there whom I should trust more?