Benjamin Studebaker

Yet Another Attempt to Make the World a Better Place by Writing Things

Tag: Joe Biden

The Bipartisan Infrastructure Agreement is Embarrassing

Remember the Biden administration’s proposal to spend $2 trillion on infrastructure? Traditional infrastructure spending accounted for roughly half of that proposal. It was less than half of what the American Society of Civil Engineers believes we need. According to them, the US faces a $2.59 trillion infrastructure shortfall over the next 10 years. Now a bipartisan deal has been announced which limits new spending to just $579 billion. That’s less than a quarter of what our civil engineers believe we need. To make matters worse, the administration has agreed to fund much of the spending with public/private partnerships. Many essential infrastructure projects can’t generate a profit–they require huge up-front investments and continuous maintenance. The more an infrastructure package depends on private funding, the more limited that package is in the kinds of projects it can fund. How did it come to this? Let’s run through some of the reasons why the infrastructure plan was so completely butchered.

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The Case for Raising the Minimum Wage to Address Labor Shortages

As we saw in the years following the 2008 recession, lots of business owners are frustrated by labor shortages. They argue that these shortages are caused by a lack of incentive to work, and propose to generate that incentive by making life more difficult for the unemployed. In this case, they argue for restoring work requirements for unemployment and eliminating the federal unemployment supplement enacted in the waning days of Trump administration. This is a highly punitive way of generating incentive, and those who support these measures often accuse our unemployed citizens of laziness. They could instead generate incentive by raising wages. A recent study from the Federal Reserve indicates that the vast majority of workers aren’t being discouraged. As long as workers anticipate that their unemployment benefits may eventually come to an end, they will accept work even when the work pays less than the benefits do. Only the workers at the very bottom of the wage distribution face an incentive problem. Today I want to discuss how the study works and what it means for the minimum wage debate.

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On the Relationship Between Infrastructure Spending and Corporation Tax

The Biden administration has come out with a $2 trillion infrastructure plan. The United States is very behind on infrastructure spending–according to the American Society of Civil Engineers, the US faces a $2.59 trillion infrastructure shortfall over the next 10 years. Biden’s bill isn’t large enough to fill that gap, and a significant percentage of its spending is for other purposes. $400 billion is slated to go to nursing home services, a pressing need in its own right, but not one of the needs which the ASCE tracks in its reports. If you add it up, it looks like roughly half the Biden bill’s spending directly addresses the needs identified by our civil engineers, while the other half funds other projects. There’s nothing inherently wrong with this–it’s very normal for politicians to attach pet programs to popular bills that meet essential needs, and many of Biden’s pet projects have value. But it does mean that this bill’s infrastructure spending is less substantial than it initially appears. It will still leave us with a significant infrastructure shortfall. The more interesting issue–and the one I wish to discuss at some length–is the decision to pair this infrastructure bill with an increase in the marginal corporation tax rate.

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An Argument with Nathan Robinson about Whether the Left Should Support Joe Biden in the General Election

Nathan Robinson and I have written two very different pieces about whether the left should support Joe Biden in the general election. We got together to debate the issue, and our discussion is now available to you on YouTube:

Here’s my piece: https://benjaminstudebaker.com/2020/08/31/the-left-case-against-supporting-joe-biden-in-the-general-election/

Here’s his piece: https://www.currentaffairs.org/2020/08/an-ineffectual-biden-presidency-is-better-for-the-left-than-an-actively-authoritarian-trump-presidency

The Left Case Against Supporting Joe Biden in the General Election

At the Democratic Convention, Bernie Sanders argued that the left should hold its nose and vote for Joe Biden:

The future of our democracy is at stake. The future of our economy is at stake. The future of our planet is at stake. We must come together to defeat Donald Trump and elect Joe Biden and Kamala Harris as president and vice president. My friends, the price of failure is just too great to imagine.

My friend Nathan Robinson, at Current Affairs, made a similar argument, claiming that this is our “last chance” to stop Donald Trump, and that we will be “fighting for our lives against an aspiring dictator” if he wins.

This is a grave mistake. Trump, for all his faults, poses no existential threat to the republic. What’s more, Sanders and Robinson are deeply underestimating the damage a Biden presidency will cause. The Republican Party has become what it is because of Democrats like Joe Biden. These Democrats are pushing the Republican Party further and further right, and a Biden presidency will make the Republican Party even more dangerous going forward. Let me show you how it works.

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