, Columnist
Biden's Trickle-Up Economics Is Bound to Fail
Long-term growth will be stifled if government spending leaves less money to invest in the future.
Innovation is the ultimate economic engine.
Photographer: Glyn Kirk/AFP via Getty Images
This article is for subscribers only.
President Joe Biden’s recently unveiled budget marks a new era in U.S. economic policy making. Decades of trickle-down tax cuts are out the window; Biden is betting that trickle-up economics will deliver the kind of sustained and equitable growth we all want. But that's a dangerously short-sighted strategy that in the long term will create far more stagnation than a Reaganomics agenda that overstayed its welcome.
(Also see Noah Smith, “Biden's Big Economic Idea Could Make History,” for an opposing view.)