As 77-year-old President-elect Joe Biden picks his Cabinet, none will be more important than Treasury Secretary, navigating the economy in the Covid-19 age away from another Great Depression. With Covid-19 raging around the country and more lockdowns on the way, the economy could double-dip into a more serious, long-term depression, driving the nation’s unemployment rate about the abysmal 11% range, something that spiked from 3.5% before the April and May shutdowns. One of Biden’s key Covid-19 advisers Dr. Michael Osterholm advised Biden to lockdown the country for six weeks to two months, inducing panic in financial circles. Biden recanted on Osterholm’s suggestion, prompting Wall Street to rebound. But in the current economic climate, the last thing Biden wants is to send markets into a tailspin, needing a steady hand for Treasury Secretary.
Sen. Elizabeth Warren (D-Mass.), 71, one of Biden’s rivals in the 2020 campaign, was considered on the shortlist for Treasury Secretary but now looks to be fading putting 58-year-old Federal Reserve Board of Governors Lael Brainard into front-runner status. Also named on Biden’s shortlist was 69-year-old TIAA Cref CEO Roger Ferguson and 74-yar-old former Federal Reserved Board Chairman Janet Yellen. But like Warren, both Ferguson and Yellen are longs-shots compared to Brainard, who’s age-and-current position gives her the best experience to navigate today’s unstable economic times. Biden’s already talked about rescinding Trump Dec. 26, 2017 Tax and stimulus bill that cut corporate taxes from 35% to 21%, giving multinational corporations the best possible reason to stay or move to the U.S. Biden’s talk of increasing taxes has already raised the specter of more layoffs.
No one understands the necessity of the Fed’s current zero interest rate policy than Brainard, who’s been in all the meetings and has crunched the numbers necessary to know the fragile state of the U.S. economy. Despite all the campaign rhetoric, Brainard would give Biden the best advice how to proceed now, given the potential for more havoc from Covid-19. Biden and his 56-year-old Vice President-Elect Kamala Harris did a masterful job of indicting Trump’s credibility in handling Covid-19 and the economy. But now that they’ve won the election, both must get real about the limitations in terms of tax hikes during a time of severe recession. Biden and Harris were first to criticize Trump’s coronavirus vaccines that he promised sometime after the election. Trump couldn’t imagine that Pfizer would announce Nov. 9 that it’s Covid-19 vaccines was good to go, 95% effective.
Wall Street rallied to record highs for the past week on Pfizer’s announcement, even though there are problems with the logistics with the vaccine, because it must be stored at minus 90 degrees, transported on dry ice. But regardless of rolling out the vaccine, Biden and Harris jumped on the good news, no longer saying you can’t trust the vaccine because it was developed under Trump. Whatever news of more vaccines coming on line, there’s still a ways to go before a good portion of the public is vaccinated, assuming Biden and Harris can reassure the public after scaring them off from using Trump’s vaccines. Anyone Biden picks will have to be pro-business and pro-economic growth, not throwing cold water on an economic recovery if its in the cards. It’s curious that 69-year-old TIAA Cref CEO Roger Ferguson retired right in time to for consideration as Treasury Secretary.
Biden plans to pick many women and people-of-color to represent his 15-member Cabinet, satisfying his party’s commitment to minority rights. Picking a minority or a woman as Treasury Secretary would break another glass ceiling, something that seems important to the Biden’s handlers. What used to be a meritocracy has now morphed into symbolic picks to make up for years of white men dominating Cabinet positions. Biden looks to continue what former President Barack Obama started eight years ago when he picked African Americans to run his Justice Department, National Security Agency and Homeland Security. With so many highly qualified white men for Cabinet picks, Biden’s looking to placate his base more than pick the best men-and-women for the jobs. Making history by picking minority applicants for Cabinet positions violates an age-old U.S. tradition of meritocracy.
Biden’s Treasure Secretary pick must be capable to doing what’s necessary to preserve the world’s greatest economy. Too many ordinary U.S. citizens depend on employment from a thriving economy. When companies leave the country for lower taxes in Canada, Mexico or somewhere else, it hurts average American citizens. It’s one thing to attack Trump to win an election but the Biden economic team must get real about growing the economy in the Covid-19 age. Raising taxes now would hit the economy with a wrecking ball, something now doubt Brainard would tell Biden, despite all the campaign rhetoric against Trump. Whoever Biden picks for run his top Cabinet jobs, including the State, Defense and Justice Department, he should pick the most competent person available to advance his domestic and foreign policy agenda. Picking only to break glass ceilings has its limits.
