Elements of the “Better Deal” are likely to be incorporated into the Democrats’ platform in 2020, so they bear reviewing now:
1. Increase the minimum wage to $15.00 per hour: Politically, this is a shrewd move, because, as I’ve noted before, Americans will support welfare programs as long as the benefits appear to be “earned,” and a minimum wage increase is a great wedge between Trump’s white working class supporters and the GOP. Is it good policy? In San Francisco, just maybe; in Nebraska, not so much. If adopted (which it won’t be), it would increase unemployment and drive businesses to relabel their employees as “independent contractors.” An enhanced EITC would make more sense and could win bipartisan support.
2. The big infrastructure plan: It will be sold as a jobs program, but we don’t have a huge issue with unemployment at the present time, and the Obama stimulus shows us that infrastructure projects ain’t what they used to be when it comes to creating jobs. The infrastructure plan makes sense, however, as a down payment on future economic growth in light of the current low interest rates.
3. Stepped-up antitrust enforcement: This appeals to Sanders voters who despise big business and economists alike. The down side is political; if handled improperly, it could cost the Democrats the support of tech businesses.
4. Lowering drug prices: Americans currently pay much higher prices for drugs than anyone else in the world because the manufacturers, who have great connections in Washington, insist that high US prices are a necessary tradeoff for innovation. Is it worth it? I would say no, but it is a debate worth having.
On the whole, the “Better Deal” appears to be a reasonably successful synthesis of ideas from the Obama and Sanders wings of the party, which is a significant accomplishment in and of itself.