Treasury Secretary Yellen touts Biden's economic agenda in Ford plant visit

Dearborn — U.S. Treasury Secretary Janet Yellen on Thursday used a visit to Metro Detroit to tout President Joe Biden's domestic economic agenda ahead of the November midterm elections.

Yellen, speaking from Ford Motor Co.'s Rouge Electric Vehicle Center and with a battery-electric F-150 Lightning as her backdrop, used her roughly 30-minute speech to tout the centerpieces of Biden's domestic agenda: a bipartisan infrastructure law, the CHIPS Act and the Inflation Reduction Act. Throughout, she highlighted income and wealthy inequality in the U.S. and cast what she described as "modern supply-side" economic policies as ways to support both higher growth and greater fairness in the economy.

The pandemic, Yellen said, highlighted and exacerbated existing economic issues such as supply-chain vulnerabilities, and she argued against a return to the pre-pandemic status quo.

"The pandemic exposed our vulnerabilities, but our economy had long been suffering from soaring inequality, weak growth and a sense of falling further behind for many — for too many," she said. "Sluggish productivity growth and declining labor force participation has weighed down our economic potential. And growing disparities in economic conditions across geographies and racial groups has exacerbated inequality."

While in Metro Detroit, Yellen had lunch with Detroit Mayor Mike Duggan and toured Livernois Avenue, where she saw Motor City Match winners Complete Image Manufacturing, which creates custom clothes, and Narrow Way Cafe. She toured the Rouge Electric Vehicle Center, where the Lightning is assembled, before her speech.

The visit came less than one week ahead of Biden's planned stop at the Detroit Auto Show on Wednesday.  Biden is expected to highlight the EV manufacturing "boom" in the U.S. in response to his economic plan, according to the White House. 

Yellen was introduced by Lt. Gov. Garlin Gilchrist and Ford's chief financial officer, John Lawler. Three members of Michigan's congressional delegation were in attendance: Democratic Reps. Debbie Dingell, Andy Levin and Haley Stevens. 

Ahead of Yellen’s speech, Republican lawmakers blasted the Biden administration for its economic “failures” including historic levels of inflation, with U.S. Rep. Bill Huizenga, R-Holland, saying he felt bad for Yellen because she was being asked to go to Michigan and “defend the indefensible.”

State Sen. Tom Barrett, R-Charlotte, noted the pain of rising prices on working families.

“Secretary Yellen first tried to tell us that inflation wasn't happening. And they said it was a sign of a good economy that was thriving, and they said it was transitory. All of these things have stacked up in a way that has had devastating effects for working families in Michigan,” said Barrett, who is challenging Democratic U.S. Rep. Elissa Slotkin, D-Lansing.

“Secretary Yellen is now saying that the federal government is going to force us off of fossil fuels when energy is the lifeblood of our economy. You can't have a thriving economy without access to adequate energy and adequate means of producing power that we so desperately rely on.”

The Michigan Republican Party also blasted Yellen's visit in a statement ahead of the event. And the Michigan branch of Americans for Prosperity — a libertarian conservative political advocacy group funded by David and Charles Koch — noted in a news release that the visit came just two weeks after Ford confirmed it is cutting 2,000 salaried jobs and 1,000 contractor positions. News of the layoffs followed the automaker receiving more than $100 million in state subsidies tied to the creation of hourly manufacturing jobs.

Meanwhile, Yellen touted economic achievements under the Biden administration such as a return to pre-pandemic levels of employment. However, she acknowledged the effects of inflation on Americans, saying that combating inflation is the administration's "top priority." 

She highlighted various provisions of the Biden administration's signature pieces of legislation, including funding to bolster clean energy production, moves to lower Medicare drug prices and investments aimed at improving the Internal Revenue Service's tax enforcement capabilities. She also pointed to massive climate investments included in the IRA, including clean energy tax credits aimed at growing production.

Yellen said the administration's economic agenda would lead to expanded productive capacity, improved resilience to global supply shocks, and greater economic fairness in the U.S. With employment in the U.S. back to pre-pandemic levels, she argued that the country is "uniquely-situated for a supply side expansion that delivers sustainable growth and reduces inequality."

Looking ahead, Yellen said the "most immediate challenge is to return to an environment of stable prices without sacrificing the economic gains of the past two years."

The Michigan Democratic Party, meanwhile, applauded the visit and the Biden administration's legislative victories.

“It’s shameful that Congressman Bill Huizenga and every other extreme Michigan Republican voted against these historic bills, which will help improve our roads and bridges, create good-paying jobs, and put money back in the pockets of Michiganders," party spokesperson Alyssa Bradley said in a statement. 

jgrzelewski@detroitnews.com

Twitter: @JGrzelewski

Washington Bureau Chief Melissa Nann Burke contributed.