Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Lazaro Gamio/Axios

The modern version of American capitalism seems destined to change — perhaps profoundly — for the first time in our lifetimes.

What's new: Capitalism is being squeezed from both sides by a debate over socialism vs. strongman nationalism: President Trump bullying the Fed, publicly pressuring CEOs and juicing short-term markets at all cost.

Why it matters: It’s no longer debatable: The system makes the big, bigger and the rich, richer. The rest of America stagnates or suffers.

Ray Dalio, the billionaire capitalist, argues that the rich vs. everyone else divide is an existential threat.

  • "I believe that all good things taken to an extreme can be self-destructive and that everything must evolve or die," he writes on LinkedIn. "This is now true for capitalism."

A lot of CEOs and rich people are coming to the same conclusion — many reluctantly and privately. But the change in tone is noteworthy.

  • JPMorgan Chase chairman and CEO Jamie Dimon wrote this week in his annual shareholders letter: "Capitalism enables competition, innovation and choice. This is not to say that capitalism does not have flaws, that it isn’t leaving people behind and that it shouldn’t be improved."

The flashing signals are everywhere:

  • The data — the unambiguous reality — is sobering and startling: Since 1980, the incomes of the top 1% tripled, the top 10% doubled, and the bottom 60% of prime-age workers were flat.
  • History — and the past half-decade here and abroad — shows this is a key ingredient of populism.
  • All of this also makes socialism attractive — to the young, especially, but also to Democrats broadly.

The Democratic debate is less about Trump and more about redistribution, government intervention and huge safety nets.

  • While it gets insufficient coverage, the 2020 policy debate among Democrats is fascinating and foretelling.

There’s also a healthy debate about how we judge whether something is a monopoly. Right now, antitrust law focus on whether concentrated power results in higher prices for consumers. 

  • As Axios Future Editor Steve LeVine has written, the debate is shifting to whether too big and too powerful is simply too big, too powerful and too dangerous.

What's next: This may manifest on the campaign trail as a referendum not only on reversing the tax cuts and implementing a Green New Deal, but then moving in the exact opposite direction — Trump as the last gasp of trickle-down economics, Axios' Dan Primack notes.

  • Axios chief tech correspondent Ina Fried points out that this comes as artificial intelligence and automation are about to disrupt and displace even more of the labor sector — and vastly increase the pace of change. 

Be smart: It's hard to imagine a more worthy debate at a more important time for America. It's tempting to fixate on Trump. But the real action is the policy and philosophical debate unfolding before us.

Go deeper: Read Axios' deep dive on the new political and economic order

Go deeper

It's harder to fill the Cabinet

Data: Chamberlain, 2020, "United States of America Cabinet Appointments Dataset" Chart: Will Chase/Axios

It's harder now for presidents to win Senate confirmation for their Cabinet picks, an Axios data analysis of votes for and against nominees found.

Why it matters: It's not just Neera Tanden. The trend is a product of growing polarization, rougher political discourse and slimming Senate majorities, experts say. It means some of the nation's most vital federal agencies go without a leader and the legislative authority that comes with one.

Exclusive: Hundreds of kids held in Border Patrol stations

Migrants cross the Rio Bravo to get to El Paso, Texas. Photo: Herika Martinez/AFP via Getty Images

More than 700 children who crossed from Mexico into the United States without their parents were in Border Patrol custody as of Sunday, according to an internal Customs and Border Protection document obtained by Axios.

Why it matters: The current backup is yet another sign of a brewing crisis for President Biden — and a worsening dilemma for these vulnerable children. Biden is finding it's easier to talk about preventing warehousing kids at the southern border than solving the problem.

Pompeo plots 2024 power play

Mike Pompeo in Washington on Feb. 12. Photo: Samuel Corum/Getty Images

Mike Pompeo has quickly reentered the political fray, raising money for Republicans, addressing key political gatherings and joining an advocacy group run by Donald Trump's former lawyer.

Why it matters: The former secretary of state is widely considered a potential 2024 presidential contender. His professional moves this week indicate he's working to keep his name in the headlines and bolster a political brand built largely on foreign policies easily contrasted with the Biden White House.