[[{“value”:”As divisive as the political rhetoric is, the policy divide between the two parties seems more narrow today than any time in recent memory. Bipartisan bills in immigration, energy permitting, and the child tax credit have been negotiated and waiting for political window to reopen. Foreign aid and military spending bills both passed in past
The post John Arnold on economic polarization appeared first on Marginal REVOLUTION.”}]]
As divisive as the political rhetoric is, the policy divide between the two parties seems more narrow today than any time in recent memory. Bipartisan bills in immigration, energy permitting, and the child tax credit have been negotiated and waiting for political window to reopen. Foreign aid and military spending bills both passed in past year with strong bipartisan support. Same with infrastructure bill in 2021 and CHIPS Act in 2022. Both parties are anti-China, favorable to India, and increasingly supportive of industrial policy and tariffs. Both talk about lowering the cost of housing, more funding for the police, and are leery of big tech. Neither party is proposing big changes in health care, K-12 or social security. College loan forgiveness is in the courts. Abortion is now in the states. GOP opposition to the IRA climate provisions are around the edges, like EV subsidies. Dems aren’t proposing any new significant climate policies. Dems have enacted minor policies against oil and gas but production continues to reach record highs. Both say no new taxes for <$400k. Increasing number of Rs have joined Ds supporting increase in corp tax rates. Perhaps the biggest difference is how to pay for TCJA extension: Dems want higher taxes on the wealthy; Trump wants universal tariffs; the rest of GOP hasn’t been specific. There are other differences for sure. Dems want more subsidies for housing and child care. GOP wants more deportations (though logistically difficult). Dems would be more aggressive against consolidation, health care costs, and junk fees. GOP wants to restucture civil service rules. But there just aren’t many major fault lines on policy between the parties today. Maybe this is why so little of this election cycle is about policy.
Here is the full tweet. I would add that “ten percent tariffs” vs. “25% tax on unrealized capital gains” is a big difference, but at least one of those is never going to happen, even if the Republicans do not capture the Senate.
The post John Arnold on economic polarization appeared first on Marginal REVOLUTION.
Current Affairs, Economics, Political Science
Leave a Reply