Tribune. It only took fifty days for Joe Biden’s inauguration as President of the United States to produce the signature – on March 11 – of a stimulus plan (American Rescue Plan Act of 2021) of 1.9 billion dollars. dollars (1,595 billion euros) for the benefit of the American population. By thus reconciling with its history, the Democratic camp then put forward its affiliation with the presidencies of Lyndon Johnson and Franklin Delano Roosevelt, while announcing a “paradigm shift”.
Without a doubt, the economic strategy of the United States is now undergoing an unprecedented transformation since the beginning of the Reagan years. From the change in monetary policy led by the Federal Reserve of the United States to the adoption of massive fiscal stimulus packages, the era of neoliberalism is drawing to a close.
But behind the election of Joe Biden, it is the adaptability and pragmatism of the core of America’s technostructure – in recent years – that has been the real instigator of the business cycle change we are witnessing.
Unemployment no longer treated as an adjustment variable
Appointed on September 17, 2018, as vice-president of the Federal Reserve of the United States, the economist Richard Clarida, former of the administration of George W. Bush and of the giant of the bond management Pimco, will play a fundamental role in this transformation. By proposing to hold a “strategic review” of American monetary policy as of November 2018, Richard Clarida carried out an evaluation work on the decisions taken in previous years which will end up culminating, on August 27, 2020, in the announcement by the Federal Reserve of the United States of a change in strategy.
While the control of inflation had until then been considered the priority objective of American monetary policy – and this, since the arrival of Paul Volcker at the head of the institution in 1979 – the search for employment maximum will now be treated with an equivalent level of priority. By this simple statement, the US administration indicated that unemployment will no longer be treated as an adjustment variable.
Supported in his action by Jerome Powell, Chairman of the Federal Reserve – formerly of the senior Bush administration and of the Carlyle Group -, and by Lael Brainard – member of the Board of Governors of the Federal Reserve and former of the administration of Bill Clinton – Richard Clarida revealed the capacity for intellectual evolution of the American technostructure, in a bipartisan way.
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