In 2015, the Roosevelt Institute, a then-obscure think tank, released a progressive economic policy report that advocated higher taxes on the rich, an increased minimum wage, more Wall Street regulation, support for labor unions, aggressive antitrust enforcement, and heightened government investment. The subsequent eight years have witnessed significant shifts in economic policy, with President Biden implementing substantial government investment programs and bipartisan support for initiatives like infrastructure and semiconductor development.

The move towards this “New Economics” is attributed to the realization that the previous laissez-faire, neoliberal, or market-friendly economic policies were not delivering prosperity for all. The shift was accelerated by unmet promises of economic benefits, growing wealth inequality, and dissatisfaction among Americans. Donald Trump’s populist approach further underscored a departure from traditional Republican views, paving the way for reevaluation.

Despite these changes, challenges persist. Tax rates on the affluent remain low, corporations wield considerable power, inhibiting union formation, and certain progressive proposals, like universal pre-K, remain aspirational. The movement faces a crucial test in the short term: whether Biden can secure re-election amidst economic concerns, particularly inflation. Although the New Economics has made remarkable strides, its vulnerability to potential reversals remains a looming factor.

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