(Community Matters) Mike Allen’s playbook
ASSIGNED WEST WING READING — N.Y. Times’ David Leonhardt’s ‘Economic Scene’ column, ‘A Progressive Agenda To Remake Washington’: ‘Congress and the White House have completed 16 months of activity that rival any other since the New Deal in scope or ambition. Like the Reagan Revolution or Lyndon Johnson’s Great Society, the new progressive period has the makings of a generational shift in how Washington operates. First came a stimulus bill that, while aimed mainly at ending a deep recession, also set out to remake the nation’s educational system and vastly expand scientific research. Then President Obama signed a health care bill that was the biggest expansion of the safety net in 40 years. And now Congress is in the final stages of a bill that would tighten Wall Street’s rules and probably shrink its profit margins. If there is a theme to all this, it has been to try to lift economic growth while also reducing income inequality. … Will this new progressive project succeed? There are any number of uncertainties: whether enough charter schools will succeed, whether the new health insurance markets will function well, whether the Fed will learn to become an effective regulator of Wall Street. posted from my blackberry
Mr. Obama has been trying to reverse the Reagan thrust in some important ways. Although the Reagan administration did not shrink the size of the federal government, it changed the ways that Washington collected and spent its money, by reducing taxes on the affluent, cutting some social programs and increasing military spending.
These policies ended up magnifying income inequality, which was already rising for other reasons. Since 1980, median household income has risen only 30 percent, adjusted for inflation, while average incomes at the top have tripled or quadrupled. Every major piece of the Obama agenda is meant, in part, to push back against inequality. Government may grow, but the bigger change will be how the government is spending its money.