Remaking America

Follow Us Get the newsletter President Franklin D. Roosevelt fundamentally reshaped U.S. economic policy nearly 80 years ago with his New Deal programs aimed at uplifting society's most vulnerable. President Lyndon B. Johnson followed suit in the 1960s with his war on poverty. The coming weeks could determine whether Joe Biden succeeds in becoming the next Democratic president remembered for tackling inequality on a grand scale. Biden's plans for a mass expansion of government spending and a revamp of the tax code, which he will detail in a speech tomorrow, are proving as divisive among economists as they are among lawmakers, Christopher Condon and Payne Lubbers report. The president will lay out the infrastructure portion of a roughly $3 trillion package. Even the initial spur will help the poor through measures like a provision for safe drinking water. The broader social-spending programs will be outlined next month. The massive legislation will be tough to enact. Senate Republican leader Mitch McConnell has warned that efforts to improve infrastructure shouldn't turn into "a Trojan horse for massive tax hikes and other job-killing left-wing policies." And with Democrats' narrow control of both the House and Senate, corralling all of Biden's party is likely to be a difficult — but necessary — task. In one sign of the challenges ahead, Democratic Representative Tom Suozzi of New York said yesterday he won't back any tax increases to pay for infrastructure unless a $10,000 cap on state and local tax deductions is repealed. Less than three months in, Biden has already set an ambitious target for his legacy. Now comes the hard part: meeting that goal. — Kathleen Hunter Cars lined up at a food bank in Chula Vista, California, in May 2020. Photographer: Bing Guan/Bloomberg Transportation Secretary Pete Buttigieg ruled out raising the federal gas tax or charging drivers a mileage fee to pay for the infrastructure plan. Check out all our biggest stories on the Bloomberg Politics web page here and tell us how we're doing or what we're missing at balancepower@bloomberg.net. Global Headlines Resurgent threat | The U.S. could follow Europe with a new wave of Covid-19 infections because states are easing restrictions too quickly and more contagious variants are increasingly prominent, a top public health official warned. Centers for Disease Control and Prevention Director Rochelle Walensky said she had a feeling of "impending doom" even as the U.S. races to vaccinate people. World leaders urged the international community to work on a treaty for pandemic preparedness after the Covid-19 outbreak exposed weaknesses in the system. The coronavirus probably spread from bats to humans via another animal, according to a World Health Organization-China study that will officially be released today. Tightening grip | China finalized a plan to cement its control over elections in Hong Kong, a move that could deepen already-fraught relations with western nations. A Hong Kong national security committee will approve candidates for the city's Legislative Council, while the number of seats will increase from 70 to 90 even as directly-elected seats are cut to 20 from 35. Legislative elections, which were postponed last year, will now be held in December. Labor watch | Top Glove's stock sank after the U.S. Customs and Border Protection agency told customs officials to seize gloves made in Malaysia, pressuring the world's biggest maker to improve its labor practices. Malaysia's main industries — palm oil and gloves — are under scrutiny, with the CBP previously banning imports of Sime Darby Plantation, the world's largest palm planter, citing allegations of forced labor. Chinese anger at H&M and other brands that refuse to use cotton from Xinjiang will probably pass, the head of the European Union Chamber of Commerce in China said. Ethnic divide | Britain's rapid vaccine rollout belies a significantly lower take-up among Black and Asian communities. Misinformation, personal experience of poor treatment and discrimination by the medical establishment are among the hurdles that need to be overcome to address the issue, James Paton reports. Otherwise, the risk is of ongoing illness and death among some of the U.K.'s most ethnically diverse and underprivileged areas. Cabinet overhaul | President Jair Bolsonaro announced sweeping cabinet changes amid growing pressure from the pandemic that's ravaging Brazil. Bolsonaro, a right-wing populist, had to accept members of the centrist establishment he once disdained while seeking to hold onto his military and ideological bases. The reshuffle spanned half a dozen top posts, including the ministers of defense, foreign affairs and justice. What to Watch  As the Organization of Petroleum Exporting Countries and its partners consider on Thursday whether to revive part of the 8 million barrels of daily output halted during the pandemic, they believe their defiantly cautious approach is paying off. South Africa's ruling party ordered members charged with crimes to step down within a month or face suspension in a signal to African National Congress Secretary-General Ace Magashule, who faces charges of money laundering, fraud and corruption, to leave his post. The Myanmar military's strikes against one of the nation's biggest rebel groups have stoked fears of a full-fledged civil war. Guatemala declared a state of emergency across swathes of the country to halt a caravan of Honduran migrants expected to depart today for the border between both countries heading toward the U.S. And finally ... Freed from the Suez Canal's main channel, the Ever Given will still create weeks of disruption for the global economy. The canal reopening kicks off a new wave of stress on supply chains — the network of ships, ports, trucks, trains and warehouses that shuttle products from factories to retail shelves. The pandemic-fueled surge in e-commerce means greater consumer demand for speed, putting added strain on transportation and boosting freight rates to record highs. The Ever Given is towed north along the Suez Canal yesterday.     Like Balance of Power? Get unlimited access to Bloomberg.com, where you'll find trusted, data-based journalism in 120 countries around the world and expert analysis from exclusive daily newsletters.   You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. Unsubscribe | Bloomberg.com | Contact Us Bloomberg L.P. 731 Lexington, New York, NY, 10022