US President Joe Biden has launched a major economic stimulus package. All in all, it involves investments in the trillions, with which he wants to propel the country’s economy to new heights.
Since the days of Thatcher and Reagan, the orientation of the economies of the West has been very liberal, often referred to as neoliberalism. Finance and the service sector became increasingly important during this period. When the Soviet Union and its satellite states collapsed in the 1990s, the global labour and sales market became even larger and the liberal economic orientation merged with the dogmas of globalisation.
Today, this development has reached its end. With Trump, a notorious critic of modern free trade and its consequences for the US middle class made it to the presidency. With that, the spell was broken; today Biden, too, focuses on the once forgotten working class, speaks of a “foreign policy of the middle class”. He is not that far removed from the concepts of his predecessor, at least not with regard to the group to which he feels primarily committed.
However, his methods are completely different. He is strongly influenced by the left wing of the Republican Party and, this is rarely mentioned, by the rise of China and the other East Asian countries, which have made a sometimes phenomenal rise in recent decades. However, they did not achieve this through the Anglo-Saxon means of the ultra-free market, but rather through state-controlled economies combined with the free market economy.
The West is currently learning from these countries. But success is not yet a foregone conclusion.