It was a moment of relief. When Joe Biden was sworn in as the 46th President of the United States of America, it was confirmation that democracy had prevailed after the threats, failures and autocratic impulses of the last four years – and the last two months in particular.
Considering what his disastrous incompetence had meant for our country, America is naturally relieved that the Donald Trump era is now over. The world ought to be, too. Hopefully, we will now return to sober, thoughtful and mature politics, where policy not personality can again take centre stage.
From an economic standpoint, there are few better manifestations of this than the appointment of Janet Yellen, the former chair of the Federal Reserve, to the role of Treasury Secretary. Wall Street loves Janet Yellen and it’s clear she will be continuing – and possibly deepening – the policies of economic stimulus and deficit spending.
Unlike Trump, however, that stimulus will focus on delivering benefits to lower- and middle-income Americans, and the more money these sectors of US society have, the better it is for the economy as a whole.
Trump’s economic policies, including huge corporate tax cuts, were at the service of wealthiest Americans, who have been able amass even greater fortunes during his presidency. In an era of Covid, wage stagnation and increasing unemployment, however, it’s clear where the stimulus needs to be now directed.
As Richard Nixon said back in the early 1970s, “We’re all Keynesians now”, and it’s a pragmatic approach that is brilliantly illustrated in Stephanie Kelton’s 2019 book The Deficit Myth: Modern Monetary Theory and the Birth of the People’s Economy. We need to protect and then grow the economy first and worry about paying off the debt later.
.jpg?gQWtqMFd)
When Joe Biden was sworn in as the 46th President of the United States, it was confirmation that democracy had prevailed
New Washington landscape
Of course, much of Biden’s economic agenda will rest on Mitch McConnell, the Senate minority leader. It seems clear that, unlike 2008 when Obama assumed office, he won’t simply be a rejectionist or an obstructionist. I think he has seen what Trump has done to the Republican Party and understands the need to take a more conciliatory path.
McConnell and his Senate colleagues always knew what Donald Trump was, but they were too afraid to confront him or antagonise his base. But their power has now dissipated and the first business of the Republican caucus ought to be joining their Democratic colleagues and voting to impeach Trump.
It seems that seven Senators have already signalled their intention to do so, meaning that just another 10 from the remaining 43 on the Republican side of aisle are required to sanction him for his treasonous incitement of the insurrection against the Capitol on January 6.
I personally think they will and it will be the beginning of the process of eradicating Trumpism from the GOP. Impeachment will also ensure that Trump is never able to run for office again, instantly killing any notion of a new party to challenge the Republicans from the right.
So, what will Trump do now? The reality is that more than 80 million Americans voted against him and that he has been rapidly shedding support since his incitement of that mob in Washington. Importantly, he has now lost his main mouthpiece, his Twitter account, with which he was able to corral his followers.
It might not be quite the end of his political influence, of course, but it’s clear that his life post-presidency will be less about campaigning and more about fighting off felony charges and criminal investigations.
As bad as we think Trump was during his time in office, it’s clear more and more will now start to come out: the sum of his corruption will be his permanent legacy.
In 1940, when successfully campaigning for a third term in office, Franklin Delano Roosevelt defeated the fascist-sympathising America First party of Charles Lindbergh.
“Malice domestic”, he said, “will come to you in the shape of those who would raise false issues, pervert facts, preach the gospel of hate and minimise the importance of public action to secure human rights or spiritual ideals…. the answer to them is the plain facts of our present condition.”
Yesterday, America provided the same answer.
Anthony Scaramucci is founder and partner in Skybridge Capital
Follow us on
