What is hindering Biden’s economic team formation?

What is hindering Biden's economic team formation?

With the current left-wing trends in the Democratic Party, it may be difficult for the Biden administration to use former President Barack Obama’s economic team, as the latter did in the past when it hired the Clinton team.

In a report published by the American Foreign Policy, the writer Adam Toys says that many names have come into circulation to form the Biden economic management team, including his old advisers, Jared Bernstein and Harris, as well as the expert, Heather Bianchi, of the Washington Center for Fair growth, who previously worked with Hillary Clinton’s transitional team.

It is likely that the Federal Reserve member, Lael Brainard, will become the first woman to serve as Treasury Secretary.

On the other hand, there are names outside this bureaucratic framework – the writer says – such as businessman Jeffrey Zients, who worked in the Obama administration as deputy director of the White House Office of Management and budget. He is one of the four co-chairs of the Biden transition team.

The contrast between nominees for the Biden administration and the rising influence of the Democratic left point to predictable divisions over economic options that were much clearer under Obama.

The economic team that worked with Obama during his first years was mainly composed of figures who worked for the Clinton period, but when Biden announced this year that he was consulting Lawrence Summers, the last Clinton Treasury Secretary and one of the most important economic figures in the Obama administration, it sparked a storm of protests among the Democratic left. Since then, Summers has announced that he will not take on any jobs running Biden.

Different conditions and expected divisions
The writer believes that the circumstances were ripe for the Obama administration to invest the economic success achieved under Clinton, but it is very different from Biden, for he inherited a slow recovery from Obama after the 2008 crisis and failed to implement radical financial reforms. The growing awareness of social and racial inequality, major technological challenges and industry problems that previously represented the strength of the economy.

Today, there are enormous differences within the Democratic Party over taxes, antitrust laws, and other thorny issues, but the only thing that may not be disputed is that the next administration needs to monitor the greatest fiscal stimulus to revive the economy in its acute crisis.

But the success of the Biden administration, in obtaining adequate funding for such incentives, depends on the Democrats’ ability to control the Senate, which is difficult to achieve under current data.

According to the writer, the continuation of the Republican control led by Mitch McConnell on the Senate next January may hinder the White House efforts to get enough money to revive the economy, and may cause more divisions inside the party, it will be difficult for the left wing to accept any possible deal with the Republicans.

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