In recent weeks, Minnesota Gov. Tim Walz burst from relative obscurity to co-headlining the Democratic presidential ticket. Walz鈥檚 career rocket launch was fueled by his cutting political rhetoric, folksy midwestern charm, jovial dad vibes, and progressive principles and accomplishments.
Before Walz was governor and a vice presidential candidate, he wore many hats. He was a congressman, a high school teacher, a union member, a command sergeant major in the Army National Guard, a state-championship-winning high school football coach. One hat he did not wear: lawyer. That makes him, , 鈥渢he first non-lawyer to be on the Democratic ticket since 1980.鈥�
While in Congress, Walz represented a conservative district that had elected Democratic representative in the previous century. The conservative makeup of that district might help explain why he took political positions that are , including supporting gun rights () and , which progressive lawmakers and environmentalists opposed because of its likely environmental impacts. Despite representing a conservative district, however, Walz was also an early supporter of same-sex marriage. He also has a long history of taking populist, progressive positions on a host of economic policies, from trade to corporate bailouts.
While not as dramatic as the political transformation of his electoral counterpart JD Vance, Walz too had over the last decade. As governor, Walz established a more progressive record than his time as a congressman, including on gun control and fighting climate change.
As governor, Walz prioritized economic issues 鈥� including greater government support for families and children 鈥� which have also been . It鈥檚 feasible that Walz鈥檚 selection could be a signal of the policies that Harris, if elected president, will try to implement during her administration.
A few weeks back, after Donald Trump picked Vance as his running mate, the Planet Money newsletter looked into . Consider this newsletter the sequel. Today, we鈥檙e stepping inside the economic mind of Tim Walz.
Walzonomics
As governor, Walz prioritized increasing the economic security of kids. A couple years back , we highlighted how America鈥檚 welfare system is pretty generous for the elderly but relatively stingy for kids. Comparing the United States to almost 40 other countries in the OECD, spends less per child as a percentage of their GDP. It鈥檚 a significant reason why the US has a than other rich nations 鈥� and even of childhood poverty than some not-so-rich countries.
As a senator, Kamala Harris co-sponsored legislation to increase the child tax credit. And, , Harris was 鈥減articularly passionate鈥� on this issue when she became vice president.
During the pandemic, the Biden-Harris administration, as part of the American Rescue Plan, expanded and enhanced the childhood tax credit, helping lift of kids out of poverty. One study by scholars at Columbia University found . But, the enhanced childhood tax credit was made only temporary, and because of , Congress didn鈥檛 end up renewing it.
Governor Walz wasn鈥檛 happy with that. So he implemented a state version of the childhood tax credit, which, according to the Tax Policy Center, is 鈥溾�� Starting in tax year 2023, every Minnesotan taxpayer with kids 鈥�$1,750 per qualifying child, with no limit on the number of children claimed.鈥� And because the credit is fully refundable, it means that even low-income Minnesotans who don鈥檛 pay much or anything in state taxes are eligible for it.
In addition to passing a generous tax credit for kids, Walz also created a program that gives Minnesotan K-12 students free school breakfasts and lunches.
Somewhat controversially, Walz made this meal program universal. It is not means-tested, so even rich kids can get free breakfasts and lunches. At a press conference after this program's passage, Walz defended the universality of the program from Republican attacks that it was an unnecessary giveaway to parents who didn鈥檛 need it.
鈥淵eah, isn鈥檛 that rich? Our Republican colleagues were concerned there would be a tax cut for the wealthiest. You can鈥檛 make some of this up if you tried,鈥� . Walz argued that, because the food program is universal, there is less bureaucracy in administering it. State bureaucrats and schools don鈥檛 have to verify the income of kids' parents. 鈥淲e know a lot of families 鈥� this is hard. They send you lots of paperwork鈥� [The universality of the tax credit] was meant to make it as easy as possible, knowing it鈥檚 a benefit for all of them.鈥�
In a recent interview with the New York Times鈥� Ezra Klein, Walz further explained that making his school food program universal also helped eliminate divisions in school cafeterias. As a high school teacher for many years, Walz also served as a lunchroom monitor. In the past, Walz said, students who received free or subsidized lunch could be identified because they had different colored lunch tickets. He suggested that the universal nature of this program helped to eliminate class-based distinctions in schools and reduce stigma for poor kids who need assistance.
In addition, Walz told Klein, he got a lot of feedback from parents 鈥� and 鈥渆specially mothers because of the unequal distribution of domestic labor鈥� 鈥� that revealed another benefit of free school breakfast and lunches. 鈥淭hese were women who said, 鈥楲ook, we didn鈥檛 qualify before. We do now. It鈥檚 an absolute tax cut for us. But it鈥檚 an absolute lifesaver for me that I don鈥檛 have to get up in the morning and either make breakfast or send one to school... So it鈥檚 a double benefit for us. I have less work. My kids eat.鈥� So it was actually middle-class folks who were most jazzed about this.鈥�
Walz supported a host of other measures that support kids, including for K-12 schools by 10 percent () and that expanded funding for kids who grew up in foster care to attend college.
Walz signed legislation that gave Minnesotan workers up to 12 weeks of paid family and medical leave as well as paid sick leave. As in the Planet Money newsletter, the United States is the only rich country without a national paid leave program. The federal government only guarantees up to 12 weeks of unpaid family and medical leave, and it doesn鈥檛 even do that for all workers.
As governor, Walz worked to change that at the state level, expanding the ability of workers in his state to take paid leave. He signed legislation that gave Minnesotans up to 12 weeks of paid family and medical leave. Even more, he made the program more generous for low-income workers. The program has , so lower income Minnesotans get a higher percentage of their income replaced when they鈥檙e on leave. The leave program is supposed to .
In addition, Walz provided Minnesotans with paid sick leave. Now, for every 30 hours Minnesotans work, they can earn at least of sick leave up to 鈥渁 maximum of 48 hours each year unless the employer agrees to a higher amount.鈥�
Walz helped make Minnesota鈥檚 tax system one of the most progressive of any state in the country. Through a series of tax cuts, rebates, and credits for low and middle-income Minnesotans and moderate tax hikes on the rich, Walz has helped transform Minnesota鈥檚 tax system into one of the few in the nation that is 鈥渕oderately progressive,鈥� . Most other states, according to this think tank, tax the rich at lower rates and therefore have tax systems that aren鈥檛 progressive at all.
Walz has done a lot on the tax reform front. Facing , the governor was able to enact 鈥溾�� These tax cuts included the aforementioned child tax credit as well tax rebates of for working class Minnesotans, which some dubbed 鈥溾�� Walz also cut taxes for recipients of Social Security in Minnesota.
To help pay for these cuts, Walz put on multinational corporations. He put on investment income over $1 million a year. Walz also increased taxes on gas to help fund infrastructure.
Walz invested heavily in Minnesota鈥檚 infrastructure. Under Walz, the state has on improving roads, bridges, and other infrastructure projects.
Walz has earned a reputation as a 鈥淵IMBY鈥� 鈥� or, someone who has prioritized the development of new housing to help solve affordability issues. As governor, Walz took a number of actions to increase the supply and affordability of housing in Minnesota, including that amounted to in Minnesota history. Walz called it 鈥渁 generational investment in housing.鈥�
Walz is a former union member and a big supporter of organized labor. As a teacher, Walz of the American Federation of Teachers union. And, like his counterpart JD Vance, Walz with auto workers. Walz also abolished , which limited workers' ability to switch jobs within an industry. He also banned companies from requiring workers to attend anti-union briefings, and worked to enhance worker protections, including at .
After Harris selected Walz, a range of unions praised him. 鈥淭im Walz doesn't just talk the talk, he walks the walk,鈥� the United Auto Workers union . 鈥淔rom delivering for working-class Americans to standing with the UAW on our picket line last year, we know which side he's on.鈥�
After intense, back-and-forth negotiations with Uber and Lyft, Governor Walz helped Minnesota become . In 2023, the Minnesota legislature passed a bill that for rideshare drivers and increased protections for them against being fired. Uber was not happy. And, after they threatened they would largely pull out of the state if the bill passed, Walz ended up vetoing the bill 鈥� .
鈥淩ideshare drivers deserve fair wages and safe working conditions. I am committed to finding solutions that balance the interests of all parties, including drivers and riders,鈥� Walz . 鈥淭his is not the right bill to achieve these goals. I have spent my career fighting for workers, and I will continue to work with drivers, riders, and rideshare companies to address the concerns that this bill sought to address.鈥�
Ultimately, however, Walz successfully from ride-share companies and implemented a version of this policy.
Governor Walz signed a so-called 鈥淭aylor Swift bill鈥� that requires ticket sellers to fully disclose, up front, the real price 鈥� including all fees and surcharges 鈥� of tickets to concerts, games, and other live events. This bill was apparently unhappy that they had trouble buying a ticket to a Taylor Swift concert in Minneapolis. The new law, among other measures, requires ticket sellers to disclose the full price of live events, including all fees, up front.
Governor Walz legalized marijuana. Both and governor, Walz has been a long-time friend of weed smokers. In 2023, he signed a bill that legalized cannabis in Minnesota and created an 鈥淥ffice of Cannabis Management鈥� to oversee and regulate the new sector. The law also 鈥渃ertain prior cannabis-related records鈥� from the criminal histories of Minnesotans.
鈥淲e鈥檝e known for too long that prohibiting the use of cannabis hasn鈥檛 worked. By legalizing adult-use cannabis, we鈥檙e expanding our economy, creating jobs, and regulating the industry to keep Minnesotans safe,鈥� said Governor Walz after signing the bill. 鈥淟egalizing adult-use cannabis and expunging or resentencing cannabis convictions will strengthen communities. This is the right move for Minnesota.鈥�
Walz has a mixed record on environmental causes. As a congressman, Walz supported the creation of the Keystone XL Pipeline, which was broadly opposed by progressives and environmental groups for its potential contributions to climate change and other environmental impacts (the pipeline was ).
But, as a governor, Walz signed a litany of pro-environmental bills, including a law that requires Minnesota to get from clean, renewable sources by 2040.
At the same time, however, Walz supported various causes opposed by environmentalists, including 鈥渁bout mining, oil pipelines, ag pollution and more,鈥� .
鈥淲hat we have appreciated about Gov. Walz is he is very pragmatic,鈥� Julie Lucas, executive director of MiningMinnesota, .
While serving in Congress, Walz opposed most free trade agreements he had the opportunity to vote for. Walz, for example, voted against free trade deals with Peru, Panama, and Colombia.
鈥淭rade can be a powerful tool for good, but as we鈥檝e seen in the past with agreements like NAFTA, sometimes these agreements work against the American worker,鈥� then-Congressman Walz said in .
When opposing free trade agreements with Colombia and Panama, Walz to how these countries were governed. 鈥淎lthough improvements have been made in recent years, Colombia still has one of the worst human rights records in the western hemisphere, especially when it comes to the rights of workers,鈥� then-Congressman Walz said in a press release. 鈥淚n light of this record, I am opposed to any trade agreement with Colombia which does not make a dramatic and sustained improvement to human rights and the rule of law in Colombia. Additionally, I am concerned about the instability and corruption of Panama鈥檚 financial institutions and oppose that agreement without a tougher crackdown on those abuses.鈥�
Walz, however, did vote for a free trade agreement with South Korea in 2011. 鈥淲hen done right, I firmly believe fair trade agreements have the potential to create jobs for American workers, greater demand for American products and growth for the US economy,鈥� Walz said in . 鈥淭hat is exactly the kind of policy we need to pursue in times like these. In southern Minnesota, the Korea Free Trade Agreement is an exciting prospect for many of our farmers and I believe this deal is a net win for Minnesota.鈥�
As a congressman, Walz voted against bailouts for financial and auto companies. And he voted for the Dodd-Frank Wall Street Reform and Consumer Protection Act. 鈥淲all Street reform will help ensure that hard-working taxpayers are never again asked to bail out Wall Street for their reckless decisions,鈥� then-Congressman Walz wrote in after voting for Dodd-Frank. 鈥淚 voted against President Bush鈥檚 original Wall Street bailout in 2008, and opposed President Obama鈥檚 attempts in 2009 to renew it because it was a raw deal for taxpayers. The next time a big bank鈥檚 mistakes threaten the economy, there won鈥檛 be a bailout, but an orderly liquidation process 鈥� and the CEOs will be the first to go.鈥�
On his opposition to the bailout of American automakers, Walz explained , 鈥淚 voted against the auto industry bailout for the same reason I voted against the Wall Street bailout: because it doesn鈥檛 do enough to protect the taxpayers who are footing the bill. Nothing in this bill will prevent the auto manufacturers and their suppliers from continuing to move jobs overseas. And we have no guarantee that spending $15 billion in taxpayers鈥� money will actually solve the Big Three鈥檚 problems. We must preserve and create jobs in America but this isn鈥檛 the way to do it.鈥�
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As is clear from the above, Walz has established a lengthy track record. And not everyone loves it. After Harris selected Walz, conservatives attacked his economic record. Former Trump economic advisor Kevin Hassett, for example, as a 鈥渢ax-and-spend liberal鈥� and even an 鈥�,鈥� pointing to a recent comment Walz had made. 鈥淒on't ever shy away from our progressive values,鈥� Walz said recently on a 鈥淲hite Dudes For Kamala鈥� call. 鈥淥ne person's socialism is another person's neighborliness.鈥�
Love him or hate him, the vice presidency is often just a ceremonial role that doesn鈥檛 have much power. However, Harris鈥檚 selection of Walz may say something about her commitment to progressive policy goals, like greater government support for kids and families, and perhaps a less cozy relationship with big corporations than some past Democratic administrations.
We will be closely monitoring the economic policy issues and proposals of this presidential election. Follow along with us at , on our short daily podcast or here at our newsletter.
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