IN response to Biden’s letter, Shehbaz replied that Pakistan is ready to work with America. People’s security, including their health, economic growth, and education, is at the heart of Biden’s vision of an enduring democratic relationship between both countries. With global indices as the foundation of this relationship, the public can look at a shooting star and make a wish for a better life in America and Pakistan.
Corruption is undermining the public in both countries. Like an overwhelming majority of Pakistanis, 60% of Americans say that corruption is their top concern. According to the White House statement, corruption poses an existential threat to prosperity, security and democracy – for Americans and for people around the world. When officials steal from their citizens or oligarchs flout the rule of law, honest businesses cannot compete, poverty grows, conflict deepens and trust in government plummets.
In recognition of this grave threat, the Biden Administration issued the first United States Strategy on Countering Corruption as a core US national security interest (FACT SHEET: US Leadership in the Fight Against Global Corruption, 11 Dec 2023, WH). America can successfully crack down on corruption (stealing of public funds) including offshore tax havens, FDIs, political funding (US Citizen United v FEC, India’s SC rules electoral bonds including dirty money unconstitutional) and overseas private property used as bank accounts. In 2020, the potential size of money laundering was $4.5T. Regulations are in place — but 99 percent of criminal proceeds still escape control in the EU (The world’s dirty money by the numbers, 19 May 2020, Politico).
People’s economic growth is critical. Biden rejects the theory of trickle-down economics and calls for adopting Bidenomics. He says Bidenomics is just another way to restore the American dream which is limited by 40 years of trickle-down economics (28 June 2023, the Hill). Social mobility has stopped in America in the last fifty years following the 1980 Reagan-Thatcher economic reforms, including privatization, tax cuts and de-industrialization. Americans need an extra $11,434 today just to afford the basics (30 Nov 2023, CBS News). 70% of young working Americans cannot afford to buy a house. In the US and UK, 50% and 40% of the youth are dependent on parents, respectively. Biden needs to review the economic model to improve the economic condition of the people, including raising women’s salary by 15% and enacting saving and pension funds (Women work two months for free, reveals TUC analysis, 23 Feb 2023, The Guardian).
Accordingly, America must tackle the rising cost of living. A reported 40% increase in food prices is attributed to middlemen. In contrast, a wheat farmer in a European democracy earns only a 15-cent share from bread sold for $6, highlighting disparities. Privatized utilities, now monopolies, yield record profits yet fail to reduce bills or enhance services. Biden must consider a return to the commonwealth model, placing civil servants in control of markets, as current price control mechanisms have faltered. Reviewing economic policies, combating corruption, and reforming real estate and markets under a centralized system can potentially reduce living costs by 60%. However, Republicans advocate replacing civil servants with political allies, risking impartial governance
Democracies need fair tax codes to end inequality (The Gilded Age: A Tale of Today). There is a $6T gap between Trump and Biden’s tax plans with the 2017 tax policy ending before 1 Jan 2026 (26 March 2024, WSJ). Biden wants to bring a fair tax code to make the country great and Trump wants to cut taxes further. Trump lowered the maximum individual tax from 39.6% to 37%, increased the standard deduction, doubled the child tax credit, and slashed the corporate tax to 21% permanently; its lowest point since 1939. Eisenhower and Roosevelt imposed a 90% wealth tax. Trump added $9T to the national debt against Obama’s $8.9T and Biden’s $4T. Biden has given $3T infrastructure and social spending plan including $1.85T 2021 Build Back Better Act and $1.2T Infrastructure Investment and Jobs Act (Biden’s Infrastructure Bills: Inside the $3 Trillion Plan, 22 Aug 2023, smart asset). Republicans plan to finish departments of education, tax, justice, and FBI (Project 2025).
To serve people, democracy needs a strong justice system, public education ($1.67T US student debt), independent media at grassroots to fight dictatorship and abuse of social media (Cambridge Analytica, FB). Jan 6 and May 9 show the challenges of the judiciary for democracy (The US Supreme Court has hijacked American democracy, 11 July 2023, the Guardian). Emergency rulings are hampering millions of people and democracy (The Shadow Docket: How the Supreme Court uses stealth rulings to amass power and undermine the Republic by Stephan Vladeck).
—The writer is senior political analyst based in Islamabad.
Email: [email protected]
