America’s first post-neoliberal president (Joshua Roberts/Getty Images)

When he walks out of the White House in six months’ time, Joe Biden will leave behind a complicated legacy. He will go down in history as the man who beat Donald Trump, the president who authorised America’s shambolic withdrawal from Afghanistan, and the real-life King Lear who refused for weeks to step down for the good of his party. Yet he also deserves to be remembered as America’s first post-neoliberal president.
Arguably, Biden delivered on Donald Trump’s “Make America Great Again” promise. While Trump’s 2016 election victory represented a rhetorical break from neoliberalism, Trump’s policies — most notably tax cuts and a perniciously offensive form of deregulation — are better seen as the last gasps of the neoliberal order. Only under Biden did policy actually start to adopt a “post-neoliberal” hue , characterised by a kind of America First protectionism focused on domestic manufacturing and infrastructure investment. As a recent profile by Christian Lorentzen describes the economic and geopolitical outlook of Biden’s main advisors, Jake Sullivan and Antony Blinken: “They would be like Trump, only progressive.”
Yet if neoliberalism is what Adolph Reed Jr defined as “capitalism without a working-class opposition”, Biden’s approach did not seek to reanimate this opposition as much as ventriloquise it to the benefit of a corporatist project meant to save the country from Trumpism. The brutal reality is that, on the heels of punishing inflation and disastrous foreign policy, working-class voters are still leaving the Democrats in droves. And crucially, come November, such an outcome might give Trump an opportunity to remould Biden’s post-neoliberal project and secure the realignment of American politics to the populist Right for decades to come.
Nowhere is this clearer than in climate policy. Many hailed Biden as America’s first “climate president” and his administration claimed to take a “whole-of-government approach” to solving the climate crisis. Admirably, Biden broke decisively from neoliberal climate policy: most notably the kind of carbon pricing solution Barack Obama tried in vain to pass through Congress.
For economists and other professional-class proponents, putting a price on carbon — or internalising the externalities of climate pollution — was “smart policy” and offered an elegant technocratic fix. These advocates never much cared that there was no popular base for increasing the cost of energy. Even worse, the policy was easily ridiculed by the Right, whose entire argument was that climate change was a liberal plot to destroy jobs and make life more expensive. Such policies have been roundly rejected in the ballot box and in the streets. By contrast, Biden’s climate policy was not framed around a carbon price or tax but rather in terms of investment in the energy and other infrastructure required to decarbonise. Instead of making fossil fuels more expensive, the goal was to use “industrial policy” to make clean energy cheap.
Not only did this approach signal a break with neoliberal economists — it also split from a stale wing of the environmental NGO and activist community who saw climate politics only in terms of opposition to fossil fuels. The modus operandi of these advocates was blockading pipelines and calling for bans on fracking, fossil fuel-burning cars and boilers. But opposing energy that nearly everyone still relies on in their everyday lives is bad politics. Indeed, a large majority of Americans (69%) claim they are not “ready to phase out the use of oil, coal and natural gas completely”.
Finally, analysts are waking up to the fact that decarbonisation is much more about building entirely new infrastructure — such as electricity generation units, transmission lines and public transit — than banning fossil fuels. As such, in the suite of legislation passed between 2021 and 2022, the Biden administration centred what the Financial Times’s Rana Foroohar calls a project of “re-industrialisation” or what Ezra Klein calls a “liberalism that builds”.
Join the discussion
Join like minded readers that support our journalism by becoming a paid subscriber
To join the discussion in the comments, become a paid subscriber.
Join like minded readers that support our journalism, read unlimited articles and enjoy other subscriber-only benefits.
Subscribe