Economic policy during a second Joe Biden term would be even worse than policy during a second Donald Trump term. Both, however, would continue a bipartisan consensus that for decades has grown broader, deeper, and more economically and culturally debilitating. Americans are sleepwalking toward convulsive pain, a consequence of decades of easy money policies to prevent minor pains.
Social outcomes that are deemed flaws of capitalism — increased inequality and corporate power — are actually largely consequences of government. It has grown excessively interventionist and confident as it and the nation have become addicted to prolonged low interest rates, the “socialization of risk” and the resulting misallocation of capital. Because of government’s “paternalistic fear,” a “bailout culture” has grown: “A safety net once meant to catch the poor at the precipice of hunger was extended under the financial markets.” This was the result of a vow by the Ayn Rand-reading Alan Greenspan, appointed Federal Reserve chairman by Ronald Reagan.
George Will’s email address is georgewill@washpost.com.
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