World Socialist Website - November 30, 2020

Despite the media characterization of CAP as a “left-wing” think tank, its major function has been to prepare and devise right-wing, pro-market policies for Democratic administrations, like the Affordable Care Act, which Tanden played a major role in crafting while she worked in the Obama White House.

President-elect Joe Biden announced the second major group of cabinet and White House appointments Sunday and Monday, including most of his economic team, drawn almost entirely from the major financial institutions and hedge funds.

The most important nomination, of former Federal Reserve Board chair Janet Yellen to become secretary of the treasury, was leaked to the press last week. Yellen was deputy chair of the Fed from 2010 to 2014, then chair from 2014 to 2018, meaning that she played a major role in economic policy for the bulk of the Obama administration, a period that saw the greatest transfer of wealth from the poor and working class to the wealthy of any time in American history.

Throughout her tenure at the Fed, Yellen was identified with the policy of “quantitative easing,” in which the central bank made effectively unlimited sums of money available to the financial markets. This policy was pursued while the White House, Congress, and the media insisted that there was no money available to create jobs, sustain education and other social services, reduce poverty, or accomplish any other progressive social goal.

Her top deputy at the treasury, officially designated Monday, will be Adewale Adeyemo, a former Obama White House aide who became a senior adviser at BlackRock, the world’s largest hedge fund, after Trump took office. In 2019, Adeyemo left BlackRock to head the Obama Foundation in Chicago.

Adeyemo is one of two BlackRock officers named for high economic posts in the Biden administration, with the New York Times reporting that Brian Deeson, another former Obama aide turned investment banker, will become chairman of the National Economic Council, the top White House economic policymaking post.

For director of the Office of Management and Budget, Biden nominated Neera Tanden, currently chief executive of the Center for American Progress (CAP), a major Democratic Party think tank, whose selection is perhaps the most revealing decision of the Biden transition so far. ...
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