President Biden is in an unusual position – the weaker the economy, the stronger the political issue for his COVID-19 stimulus package.
The administration adopted a mediocre report on Friday, arguing that the $ 1.9 billion full package proposed by Biden is essential.
Biden described the kind of gloomy picture that most presidents would normally suppress while speaking in the State Dining Room in the White House on Friday.
“It is very clear that our economy is still in trouble,” he said.
He outlined ‘enormous pain’ in the country, not only increased unemployment levels and 15 million people who paid rent, but also rising rates of suicide and domestic abuse.
Politically speaking, the calculation of the president is clear. He is unlikely to be blamed for the current economic conditions, as he has just taken office.
The Senate paved the way for a possible vote across the party lines on Biden’s stimulus measures in the early hours of Friday, when Vice President Harris cast the decisive vote on important amendments.
In his remarks Friday, Biden said, “I would like to do that with the support of Republicans … but they are just not willing to go as far as I think we should go.”
He later added that, “What Republicans have suggested is to do nothing or not do enough.”
Sen. Susan Collins
Susan Margaret CollinsSanders criticizes Democrats willing to be eligible for stimulus checks Biden doubles the norm in the White House. The memorandum: report on bad posts increases stimulus case BID MORE (Maine) and nine other GOP senators have pushed for a compromise bill with a price tag of about a third of Biden’s proposal. Other Republicans have simply registered their opposition to Biden’s measure, which they say is greater than necessary.
Rachel Greszler, a research fellow at the Conservative Heritage Foundation, wrote about the dangers she sees if the federal minimum wage is raised to $ 15 an hour. According to her, such a move would hit the industries hardest hit by the pandemic, such as hotels, restaurants and clothing retailers.
The chances of the minimum wage of $ 15 being introduced soon have diminished rapidly. Sen. Joe Manchin
Joseph (Joe) ManchinSanders criticizes the Democrats who are willing to compare stimulation checks. The memorandum: Report on bad jobs boosts Biden stimulus Biden expects the minimum wage increase to be deducted from the final relief bill. (DW.Va.) indicated that he would not support it and even his strongest advocate, Sen. Bernie Sanders
Bernie SandersSanders criticizes Democrats willing to be eligible for stimulus checks Sunday shows preview: Budget resolution clears way for 0.9 billion stimulus; Senate prepares for indictment. The memorandum: Bad job report gives greater incentive case for Biden (I-Vt.), Accepted it could not happen immediately.
Conservatives like Greszler, however, have accepted general concerns about excessive government spending as a major stimulus measure.
She argued that a debt crisis for the United States “is certainly plausible in the not-too-distant future” and that the return to the crisis is primarily through an effective vaccination program that will accelerate the full reopening of the economy.
“The stimulus bill they’re talking about right now is not timely or purposeful, and it’s just used to throw a bunch of wish list items in a package,” she claims.
The skeptics’ case received unexpected help from Larry Summers, who served as secretary of state under President Clinton and was a key economic adviser to President Obama.
In a Washington Post publication published Thursday, Summers essentially argues that the current proposal is too large.
Summers was, in one sense, an optimistic affair. Unemployment is declining and there is likely to be a further strengthening of demand, he wrote.
The dangers, he said, are that massive public spending could cause inflationary pressures and leave less money to spend on other priorities.
Summers has always been viewed with disgust by progressives, blaming him for promoting deregulation under Clinton and suppressing Obama’s response to the Great Recession.
There was a strong setback from the White House against his latest intervention.
Jared Bernstein
Jared Bernstein The Memorandum: Bad Job Report Boosts Biden Stimulus More than 200 Obama officials sign a letter in support of Biden’s stimulus plan. Biden economic adviser calls Summers ‘flat-out wrong’ with inflation remarks, a member of Biden’s Council of Economic Advisers, said during an information session in the White House on Friday that Summers was “just wrong” in indicating that the president did not mind the threat of inflation.
Asked about Summers ‘apparent belief that the Biden government had achieved too much in its proposal, Bernstein replied:’ No, I would certainly not agree with the statement. … We must strike back hard, we must strike back strongly. ‘
Other liberal-leaning economists see it that way too.
“The Biden plan is a deliberate overreaction because, in my understanding, they think the economy has been too cold for a very long time – since the Great Recession – and we need a period of very strong growth to repair the damage. said Josh Bivens, research director of the left-wing economic institute.
Bivens also argued that a major stimulus measure would later deprive Biden of political and literal capital. A public perception that the White House had effectively addressed the current economic problems would strengthen their pitch for later action.
There is clearly an appetite for action among Democrats, whether Republicans want to do it or not.
Many on the left cite the experience of the Obama administration, where they say the White House has made too many concessions in search of IDP cooperation that never materialized.
Even now, “I believe the Republicans were never serious about negotiating an economic recovery package,” said Democratic strategist Julie Roginsky.
‘We’ve seen this playbook before from [Senate Minority Leader] Mitch McConnell
Addison (Mitch) Mitchell McConnell Republicans want to incite Democrats over reopening school. GOP blames White House staff for lack of COVID-19 relief. [R-Ky.], ”Roginsky added. “He knows full well that if the economy has tanks in the next two years, the chances of him taking back the Senate majority are better.”
The Memo is a reported column by Niall Stanage.