RUY TEIXEIRA: Democrats Don’t Have a Growth Program; they’re not even interested.
Democrats once understood the importance of economic growth. That’s because growth, particularly productivity growth, is what drives rising living standards over time. Democrats sought to harness the benefits of growth for the working class, not to interfere with the economic engine of progress. They believed in the future and the possibilities for dramatic improvement in human welfare.
Democrats’ 21st century project has, at its core, been dedicated to other goals. They now prize goals like fighting climate change, reducing inequality, pursuing procedural justice, and advocating for immigrants and identity groups above promoting growth. For example, the “Deciding to Win” report analyzed word frequency in Democratic Party platforms since 2012 and found a 32 percent decline in the appearance of the word “growth” compared to a 150 percent increase in the word “climate,” a 1,044 percent increase in “LGBT/LGBTQI+,” a 766 percent increase in “equity,” an 828 percent increase in “white/black/Latino/Latina,” and a 333 percent increase in “environmental justice.”
This is remarkably short-sighted. The key to substantially rising living standards for the working class—once the Democrats’ prized goal—is precisely more economic growth, especially higher productivity growth. You cannot make up for that by redistribution nor by simply spending more money on government programs. A fast-growth economy provides more opportunities for upward mobility, generates better-paying jobs, creates fiscal space for priorities like infrastructure projects, and, as Benjamin Friedman has argued, has positive “moral consequences” by orienting citizens toward generosity, tolerance, and collective advance. Slow growth has the opposite effects.
I’m glad to see that Teixeira has noticed, but this isn’t all that new a development: Welcome Back My Friends, to the Malaise that Never Ends.
