Kathmandu— The rise of Donald Trump and the Make America Great Again (MAGA) movement is rooted in decades of economic failure and social erosion, according to a new working paper from the Institute for New Economic Thinking (INET). The paper argues that the affordability crisis affecting working- and middle-class US households is a long-term emergency, driven by inadequate pay and insecure jobs, not just recent inflation.

Economic Failure and Social Erosion

The paper analyzes the macroeconomic roots of the collapse of the political center in the United States, focusing on the affordability crisis that has affected working- and middle-class households. It highlights that running the economy 'hot' under Joe Biden’s administration did not structurally improve hourly wages, weekly earnings, or income growth relative to pre-pandemic trends. The authors argue that this long-term economic failure has eroded the social underpinnings of America’s economy to a breaking point, fueling the rise of the Republican Right.

Biden Administration’s Record

The paper specifically examines the Biden administration’s record on wages and incomes. It considers real hourly wages, real weekly earnings, the employment cost index, and real median family and household income. The conclusion is that these measures did not show significant improvement under Biden’s watch, despite the administration’s efforts to address economic inequality. This lack of progress has contributed to the growing disillusionment among the electorate.

(With inputs from Jacobin)

Originally published on abcnews.com.np.