A New Dawn? Biden's Economic Vision and What It Means for the World

9th November 2020

Following the 2020 US election, Joe Biden’s economic plan focuses on recovery, climate change, and social justice. Yet, as he embarks on his term, the question remains: will these policies propel the global economy, or stifle it?

The 2020 US election marked the return of a figure familiar to Washington, but Joe Biden’s economic vision is as untested as it is ambitious. His proposed policies are being touted as a panacea for America’s woes, but a closer examination reveals potential pitfalls, both at home and abroad. His promise of an economic recovery seems more akin to the hopes of Charles Dickens’s Great Expectations — lofty, admirable, yet tainted by the reality of systemic flaws. With an eye on social justice and climate change, Biden seeks to transform the economic landscape, but his policies could very well stifle the very growth they hope to foster.

Biden’s administration is a tale of two worlds: the lofty ideals of progressive reform and the stark, sometimes inconvenient, realities of governance. With promises to tackle inequality, transform the energy sector, and implement a social welfare agenda, Biden’s economic policies look set to reshape the American economy. But will they? As Shakespeare’s Hamlet once asked, “To be or not to be?” — for Biden’s plan, the question is: To prosper or not to prosper?

A Progressive Agenda: The Roots of Stagnation?

At the heart of Biden’s recovery plan lies an ambitious $1.9 trillion stimulus package — the largest in US history. But one must ask, will such an immense outpouring of government spending spark true recovery, or will it simply create a new class of dependency? While Biden’s supporters frame the stimulus as a necessary lifeline to struggling families and businesses, one cannot ignore the haunting spectre of inflation that looms over any massive increase in government expenditure. In the long run, this approach bears a resemblance to the tale of Frankenstein—creating a monster that may one day turn on its creator. Just as Victor Frankenstein could not contain the monster he brought to life, so too might Biden’s stimulus ignite an economic wildfire that no administration can quench.

Biden’s plan prioritises social welfare, increasing spending on healthcare, education, and unemployment benefits. While these initiatives may sound virtuous, they beg the question: where will the money come from? Higher taxes on corporations and the wealthy are touted as the solution, but these very taxes could have a chilling effect on investment and economic growth. The ghost of Milton Friedman haunts this discussion: high taxes and government intervention have historically stifled innovation and free enterprise. While Biden’s advocates would point to the progressive victories of the New Deal era, it’s worth recalling that the global economy is a far cry from the 1930s, and the world now faces unique challenges that require a more nuanced approach.

For all his promises of recovery, Biden's plan exhibits the classic flaw of The Emperor’s New Clothes—it looks appealing, but the reality may be far less impressive. By focusing on social justice over economic dynamism, Biden risks undermining the very forces that could fuel a sustainable recovery. As Dickens's A Tale of Two Cities suggests, there are two visions of prosperity — one reliant on government intervention, the other on the free market. The latter, ironically, may provide the very solution that Biden’s team seeks, though they may not realise it.

Climate Change: A Green New Deal or a Green Haze?

A cornerstone of Biden’s agenda is his commitment to combat climate change, which he has framed as a moral imperative for the future. Yet the promises of a Green New Deal, which mimic the bold ambitions of FDR’s original New Deal, may come with unexpected consequences. Biden's proposed $2 trillion clean energy plan seeks to transition the US away from fossil fuels towards a renewable energy future. But is this truly a sustainable path, or a dangerous game of economic chess that risks leaving millions behind?

Biden’s supporters will argue that his green investments will create jobs and propel the economy into a new era of innovation. However, much like the dream of utopian socialism outlined in George Orwell’s 1984, the reality of Biden’s climate policies may fail to live up to the rhetoric. His plans to create jobs in the renewable energy sector could place significant pressure on industries that rely on fossil fuels, creating the kind of economic dislocation that history’s great reformers—like Marx and Engels—could never have predicted. The promise of green jobs could easily turn into a Pyrrhic victory if the transition fails to deliver on its lofty promises.

Furthermore, Biden's focus on climate change neglects the fact that many developing countries are still reliant on fossil fuels for their economic growth. As Heart of Darkness by Joseph Conrad makes clear, well-intentioned interventions by the West have often failed to account for the complexities of local realities. Biden's push for a global green agenda may be seen as yet another form of economic imperialism—one that imposes American priorities on the world without regard for the unique challenges faced by other nations.

A Liberal International Order: A Return to the Status Quo?

While Biden’s domestic economic agenda is audacious, his foreign policy approach reflects a return to a more traditional, multilateral stance. He has made it clear that his administration will re-enter the Paris Climate Agreement, strengthen ties with NATO allies, and engage with international organisations like the United Nations. Yet, much like the hollow promises of leaders in Shakespeare’s Julius Caesar, Biden’s foreign policy may be less about substance and more about the perception of action.

Biden’s foreign policy vision has been criticised for its nostalgia—an attempt to revive the post-World War II order in a world that has dramatically shifted. The reality is that the international system is no longer as stable as it once was, and Biden’s focus on multilateralism may be a naive attempt to recapture a world that no longer exists. The global rise of China, the resurgence of Russia, and the increasing nationalism in Europe all present challenges that Biden’s internationalist approach may be ill-equipped to handle. Biden's tendency to appeal to traditional allies may alienate countries like Russia and China, who view US-led global initiatives with suspicion.

Biden’s foreign policy risks repeating the mistakes of his predecessors, relying too heavily on diplomacy and international institutions to resolve issues that are increasingly shaped by economic and geopolitical power. The world is no longer organised around Washington’s leadership, and Biden’s efforts to restore the liberal international order may be a fool's errand. In the words of Macbeth, "The time has been that when the brains were out, the man would die, and there an end." The “brains” of American foreign policy may no longer wield the power they once did, and the end of US dominance in global affairs may be an unavoidable reality.

Conclusion: Can Biden's Vision Stand the Test of Time?

Joe Biden’s economic and foreign policy vision is a complex tapestry woven from idealism, pragmatism, and historical precedent. While his domestic agenda promises to address pressing issues like healthcare, climate change, and inequality, it is also fraught with risks—chief among them, the potential for economic stagnation. Biden’s push for a more equitable economy is admirable, but it may come at the expense of the free market forces that have driven American prosperity for decades.

As for his foreign policy, Biden’s commitment to multilateralism is laudable in theory, but it risks being out of touch with the realities of a rapidly changing world order. Much like the protagonists of The Great Gatsby and Moby-Dick, Biden may find that his dreams of global unity and economic justice are ultimately unattainable—caught between the visions of a better world and the harsh truths of political and economic constraints.

In the end, Biden’s economic policies may be seen as a well-intentioned attempt to reshape the world, but the outcomes are far from certain. Will the US emerge stronger, more just, and more sustainable? Or will Biden’s vision falter under the weight of its own contradictions, much like the tragic heroes of our greatest literary works? Only time will tell.