Treasury Secretary Janet Yellen appeared to take on the role of campaign surrogate for the Biden-Harris re-election effort in a speech promoted to consider the “economic case for democracy.”
In prepared remarks delivered before the McCain Institute in Washington, D.C., Yellen’s speech seemed to take potshots at former President Donald Trump – who declined to reappoint her as the chairperson of the Federal Reserve – while talking up key elements of the Biden administration’s agenda.
“Recently, democracy has come under threat,” said Yellen. “That challenge was especially terrifying on the notorious day of January 6th, when rioters, spurred on by a lie, stormed the Capitol. They attempted to block the peaceful transition of leadership at the heart of our democracy. But the threat to democracy is not just here at home. In Europe, Putin’s authoritarian regime continues to wage a brutal and unjust war. That war is devastating to Ukraine’s future, and it is also undermining the rules-based international order.”
Yellen made no direct mention of the recent demonstrations on American campuses in support of Hamas’ terrorism war against Israel – let alone the Hamas invasion of Israel last October – although her comments on upholding “the rule of law” could be seen as a veiled reference to the tumult disrupting higher education.
“Citizens in a democracy also widely obey the law,” she said. “They do so because other citizens also support it. Moreover, they view it as their duty to cooperate with law enforcement: If I disobey the law, you will see it as your duty to help the authorities, as the law requires and vice versa. Such cooperation is a foundation of democracy. There’s a name for the respect for the law that’s typical of democracies. It’s called “legitimacy.” Absent such legitimacy, democracy collapses. But with it, democracy thrives.”
Yellen was also selective in highlighting the Biden administration’s record. She claimed the post-pandemic economy “bounced back quickly, achieving rapid economic growth and unemployment that remains near historic lows.” However, she made no direct reference to the challenges facing the housing market, only making a somewhat cryptic notion that another administration would not respect homeowners.
“In a democracy, individuals and firms can trust that arrangements such as property rights will not change overnight and will be enforced fairly, no matter who is in power,” she said. “Winners are not predetermined or subject to the arbitrary and unpredictable whims of political leaders.”
