The president’s investment agenda is already generating a huge economic impact. Will political benefits follow?

  • DreamerOfImprobableDreams@kbin.socialOP
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    1 year ago

    Compounding the union’s concern is that, as the EV share of the overall market grows, the auto companies will inevitably reduce employment at the unionized plants now producing the batteries for internal-combustion vehicles as they gear up production at their EV-battery plants. Given the locations of most of those EV plants, that change will also likely shift jobs from Rust Belt states that Democrats must win, like Michigan, to states such as Kentucky, Tennessee, and South Carolina, where their prospects are dim. “If I am a Democratic Party adviser, why are we giving $9 billion to replace 7,500 Rust Belt jobs with half-the-wage Kentucky and Tennessee jobs?” one UAW source, who asked for anonymity while discussing union strategy, told me. “What’s the political calculus there?”

    Biden lost his most powerful tool to promote unionization in the EV transition when Senator Joe Manchin insisted on the removal of a provision in the inflation-reduction bill that would have given consumers a substantial tax break for purchasing electric vehicles built with union labor.

    But critics in the party believe that the administration should be more aggressive about challenging companies to provide good wages with the tools they still have, such as the conditions they can attach to the sort of loan Ford received. “We definitely don’t want to be stimulating a race-to-the-bottom dynamic that will be undermining our own goals of ensuring decent livelihoods for workers,” Isabel Estevez, the deputy director of industrial policy and trade at the Roosevelt Institute, a liberal think tank, told me.

    Biden has identified with unions more overtly than any Democratic president in decades, so he will likely seek some way to soothe the discontent at the UAW. But he probably won’t veer from his larger course of celebrating how much of the new investment is flowing into red-leaning blue-collar places, even if many of those are communities he is unlikely to win or in states he cannot seriously contest.

    Because Bidenomics aims to revive “investments in places that have long been left behind, then it is inevitable” that some of that funding will benefit distressed communities that have turned away from Democrats and embraced Trump, Bernstein told me. For Biden, aides say, that’s not a bug in his plan, but a benefit. “President Biden often says, ‘Whether you voted for me or not, I will be your president,’” Bernstein said. “Now he can stand at the podium and hold up the graphics that show that it’s true.”