Bernie Sanders as Senate Budget Chair: Power, Progressive Policy, and the Future of Economic Reform

This podcast episode delves into the significant power and potential influence of Bernie Sanders as the incoming chairman of the Senate Budget Committee, particularly in the context of the new Biden administration. Rob Johnson, President of the Institute for New Economic Thinking, and Paul Jay discuss how Sanders can leverage this position to advance progressive policies, including emergency universal healthcare during the pandemic, cuts to the military budget, and tax reforms aimed at the wealthy. They highlight the committee's control over federal spending and its ability to shape the national budget, emphasizing that the chair can force hearings, raise public awareness, and potentially embed amendments into critical legislation like the 'Christmas tree bill'. The conversation underscores that while Sanders cannot unilaterally enact policies, his role provides a powerful platform to challenge vested interests and shift public discourse.

A key distinction made is between Sanders' focus on 'bread and butter' economic issues—alleviating material distress and health fears—and other progressives' emphasis on broader inclusiveness across gender, race, and sexual preference. The discussion also differentiates between tax evasion (a crime) and tax avoidance (legal lobbying to keep money offshore), illustrating how the latter starves the American government of revenue. The hosts critically examine the impact of past stimulus packages, noting that the first round primarily 'protected assets, not people,' and advocate for a new, more distributionally equitable plan that directly supports individuals, especially those in sectors like hospitality and leisure. They acknowledge the challenge posed by conservative Democrats and the immense influence of money in American politics, including lobbying, campaign contributions, and the role of Super PACs.

The podcast offers practical insights into how Sanders can use his position to 'force votes' and 'shine a light on the controversy' surrounding issues like Medicare for All, which public opinion polls show has significant popular support despite opposition from vested interests like pharmaceutical and insurance companies. It also explores the potential for rescinding the 2017 Trump tax cuts and readjusting the military budget, drawing parallels to historical figures like FDR who rose to the occasion during times of crisis. The conversation touches on the need for structural changes, such as a global wealth tax, to fund public goods like healthcare, education, and broadband internet, rather than relying solely on charitable donations.

Broader implications include the need for healing within the Democratic party and the public at large, especially after the turmoil of January 6th and the recognition that Trump's rise was partly due to neglect by previous administrations. The speakers warn that if economic despair continues, it could lead to further political instability and the rise of authoritarian leaders, posing a significant danger to democracy. They also discuss nuances in Biden's foreign policy, such as rejoining the Iran nuclear deal and framing China as a 'global competitor' rather than an 'adversary,' suggesting glimmers of rationality and a potential shift from aggressive rhetoric.

"republicans used budget reconciliation to pass massive tax breaks for the rich and large corporations with a simple majority vote as the incoming chairman of the budget committee i will fight to use the same process to boldly address the needs of working families"

"the senate budget committee is really one of the most powerful in congress because it controls the money"

"public opinion polls show more than 70 percent of the population is in favor of medicare for all it's not the population that doesn't want it and they're the ultimate voters it's vested interests"

"after 40 years people are questioning the validity of that hypothesis [trickle-down] because it's a promise that's not been fulfilled"

"it used to be that taking your money and keeping it offshore was called tax evasion and it was a crime but we've now lobbied successfully on the part of the wealthy and powerful so that is now called tax avoidance not tax evasion"

"the first round protected assets not people and so i think we're now in a juncture where a different distributional plan is essential to the credibility of this new administration"

"the danger is if we don't do that if we allow the despair to continue to be fomented and and elevate there will be a degree of fear where many people will acquiesce to another authoritarian leader"

"china is adversarial and an adversary on some issues and in other issues we try to cooperate with them whether in the context of climate change or other things and ultimately the frame that the president-elect has identified for thinking about this is as a global competitor"