Washington, D.C. — The confirmation process is underway for many of President-elect Biden’s cabinet picks. Among those testifying in committee this week is the Treasury Secretary Nominee, Janet Yellen. When asked her thoughts about relief spending, she did not shy away from big government spending, telling Congress to “act big.”
Yellen was specifically referring to the $1.9 Trillion relief package proposed by Joe Biden last week. Yellen argued that the time to spend big is now, given historically low interest rates.
It’s funny that Yellen cites interest rates as she used to be one of the people that directly impacted the country’s interest rates.
During the Obama administration, Janet Yellen served as the Chair of the Federal Reserve, whose policies directly impact interest rates.
Throughout her tenure as Fed Chair, Yellen was known for being more moderate than her predecessor, Ben Bernanke. Now, she appears to be abandoning any thoughts of fiscal constraint in light of her nomination as Secretary of the Treasury.
The $1.9 trillion proposal comes at a time when the United States National Debt sits at $27.8 Trillion and counting. There is nothing that is fiscally moderate about this plan.
During her hearing, Yellen also echoed Joe Biden’s call for a $15 an hour minimum wage, which is more than double the current Federal Minimum Wage. The non-partisan Congressional Budget Office estimates that this shift alone will cost the United States as much as three million jobs.
At one point, a Democratic Senator asked Yellen to “promote diversity” within the Treasury Department, as well as use her authority to work to address wealth inequality between races.
Although Yellen was vocally supportive of this effort, she failed to mention the adverse effects minimum wage hikes have on minority and lower-income workers. Minimum wage increases historically hurt young people of color at a disproportionate rate.
Minimum wage laws, in general, have a spotty, racist history.
The role of Secretary of the Treasury is one of the more powerful and important cabinet positions. The nation’s Treasurer deals with foreign governments, oversees the Internal Revenue Service, and is a chief advisor to both the President and Congress for negotiating national spending.
Yellen is set to replace Trump’s Treasury Secretary, Steve Mnuchin. While Mnuchin was not a fiscal conservative, it appears that Yellen will be far more liberal when it comes to spending.
Janet Yellen is expected to be overwhelmingly confirmed as Biden’s Treasury Secretary.
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