Party infighting on Biden’s signature domestic legislation on infrastructure and social policy was on full display. Passage of the US$1 trillion infrastructure bill was held up by liberal democrats who wanted assurances on the accompanying package on social and climate policy.
Meanwhile, the bigger ticket item, the Build Back Better bill that focuses on social spending, has passed the House but faces uncertainty in the Senate. Centrist Democrats were instrumental in gutting provisions most popular with voters but not to corporate lobbyists, such as expanding dental and vision coverage.
The failure to pass legislation is taking a toll on Democrats and eroding support for Biden and his agenda. Biden, elected as someone who could build bipartisan support for popular programmes that would help regular Americans, seems incapable of unifying even his own party.
SALVAGING THE SITUATION
Looking ahead to 2024 when Biden has indicated he will run again, can he pull out of this slump? Something close to a 50 per cent approval rating is thought necessary to win.
Underlying fundamentals should help. The jobs numbers and wage growth are strong. The bottom 40 per cent of families are better off. Infrastructure spending will take years to really become noticeable, but job creation, which cuts across racial lines and helps blue-collar families, should become visible sooner.
Although it is notoriously difficult for the US government to get inflation under control, there are signs it may begin to moderate. The US, along with several other large countries, recently released tens of millions of barrels of oil from their strategic stockpiles. While not a panacea, this is stabilising gas prices at the pump in the short run.
Global supply chain issues, related to the surge in inflation, are tricky and unpredictable in light of COVID-19. Yet there is some sentiment that the worst is behind us as production in Asia rebounds.
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