Barney Frank, the former US Congressman who chaired the House Financial Services Committee and co-authored the Dodd-Frank Act, shared his insights on the key priorities of the incoming Biden administration and the imperative for the President’s cabinet picks to balance growth with the fair distribution of wealth. He stressed that the Biden White House must steer economic, foreign and regulatory policies towards benefitting the average American worker and the US economy.

He acknowledged that while innovation and technology are creating growth and wealth in the new economy, they have also caused a deep social divide between workers with and without the requisite skills and tools to be successful. He quipped, “While rising tides may lift all boats, not everyone can afford a boat. And if you are tiptoeing in the water, a rising tide may not be such a good idea”.

One way to address the imbalance, Frank suggested is the establishment of labour unions for workers in the service and “gig” sectors along the line of industrial labour unions created by President Franklin Roosevelt in the 1930s and 1940s that birthed the American middle class after the Great Depression and Second World War.

With inflation being less of a concern and Congress’ support, Frank pointed to increased infrastructure spending and expansion of Medicare facilities as means to put money into the pockets of the average worker to drive growth with equity. In a clear message to the financial industry, he stressed the need for the new administration to be fair and reasonable but at the same time hard on matters pertaining to financial regulation. Under the Biden administration, he envisages a socially responsible trade policy supported by fair terms but also one that reduces ‘hurt’ on American people and protects local interests.