Biden’s Key Domestic Problems

The Daily Escape:

Aerial view of sunset at Cathedral Rock just after snowstorm, Sedona, AZ – February 2022 photo by mattymeis

Wrongo will leave it to others to deeply analyze Biden’s State of the Union speech. Biden clearly doesn’t have the oratory skills of Obama, or a Reagan. He’s more like Carter, or GHW Bush. He is, however, a better public speaker than Mitch McConnell.

Biden’s performance was pretty solid for a guy facing down fascism, both here at home as well as abroad. He didn’t attack his predecessor. He didn’t mention Jan. 6. That means he knows that what really matters isn’t shouting at his political adversaries, but talking over the heads of Congress to the nation.

But let’s take a prospective look at a few of the issues that may make or break Biden’s second year and likewise, cost the Democrats their majorities in both Houses of Congress in November. He’s facing one global crisis (the pandemic) that’s fading, and another (Russia’s invasion of Ukraine) that’s escalating.

In his first year, Biden presided over a robust economic recovery. It did create inflation, bringing higher prices for everything from housing and food to cars and gasoline. Here are a few of the challenges and opportunities for Biden in 2022:

Inflation. Biden adopted an aggressive, populist approach to beating inflation in his speech. In particular, saying that “Capitalism without competition is exploitation—and it drives up profits” was a great way to speak to the average American. The Fed’s interest rate hikes in 2022 will help.

Gas prices. The cost of fuel, electricity and power was 3.8% of average disposable income in January 2022. This is about where it was in late 2018, when Trump was president. Vehicle fuel efficiency means $3.50/gal. gasoline isn’t the scourge it once was. But, with the oil markets at above $100 a barrel because of Russia’s invasion of Ukraine, Biden may have a difficult time convincing voters they’re better off.

The supply chain. The shipping logjam is still with us. The Port of Los Angeles processed 7 million 20-foot equivalent shipping containers last year, surpassing the previous record set in 2018 by 13%. But that system isn’t built to handle the spike in demand caused by people buying more goods than services in 2021. Our supply chain is controlled by private companies including port operators, labor unions, the rail and trucking industries, and the large shippers that rely on their services. It’s unclear what Biden can do to reduce shipping costs.

Homicides. Americans are killing each other at rates not seen in decades. The sense that crime is out of control is and will continue to be a drag on Biden’s approval ratings, especially among Republicans and Hispanics. The current wave of killings began before Biden took office in 2021, and other measures of crime haven’t shown increases. There’s little Biden can do to turn this around.

Illegal border crossings. The 1.66 million migrants seeking to cross the US-Mexico border illegally in the 12 months through September, are the highest number since 2000. But Biden isn’t doing as bad a job as Republicans say. The Migration Policy Institute estimates that the actual number of successful unlawful entries in 2021 was less than one-fourth the total in 2000. Customs and Border Patrol has greatly reduced the number of migrants who manage to sneak in. Biden says he will address the multiple year backlog in asylum cases by hiring more immigration judges.

Tax refunds will be late this year. Americans hate doing their taxes but love getting refunds. A Bankrate survey found that 67% of those expecting a refund said it was important to their finances and planned to either save it, or use it to pay down debt or for daily expenses. The IRS says they’re overwhelmed following pandemic-related challenges, years of underfunding, and additional duties such as administering stimulus payments. The IRS has added a “surge team” to help whittle the big backlog and speed refunds. But if long delays materialize, voters will only remember they had to wait for too long to get their money back.

Biden’s approval rating. Pundits think that unless Biden’s approval rating improves into the high 40%s in the next few months, Democrats risk a 2010-style bloodbath in November. We won’t know for a few weeks if Biden received a bump in his approval ratings post-speech. CNN’s post-speech poll shows that 67% of those who watched the speech say that Biden’s policy proposals would move the country in the right direction, with 33% saying we would go in the wrong direction. That’s in contrast with a survey conducted before the speech with the same people. They were closer to evenly split (52% right direction, 48% wrong direction).

Many of the challenges confronting Biden are not fully in his control. In addition to what are enumerated above, Biden can get a boost based on his handling of Putin’s War and the sanctions regime. That may offset the negative image of our Afghanistan withdrawal.

There are just 8 months until the mid-terms. Biden needs to move fast.

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terence e mckenna

About 2 miles from my house is a park built along a stream – it was dammed long ago (there were many mill ponds here) and functions as a quiet place to jog, stroll or walk a dog. It is nestled in hills and so many of the houses that surround the pond have a wooded hill in their back yard. So this is a sylvan glade.

And yet along the road are several houses where an array of Trump flags fly, along with a one “Let’s go Brandon” sign. This is suburban Morris County, a mostly white well off suburb – not ritzy but a great place to live.

The Trump signs and the Brandon reference are signs of an anger at America that is undeserved. You and I both lived through an oil shock and inflation decades ago. I was a poorly paid worker after I left graduate school in ’76. But the 24 hour forever on media have created a strange impatience as if the president must do a backflip and so whip inflation and the supply chain in a week or Americans will be upset.

We have right wing media that already creates distrust of government and any Democrat. Then we have main stream media that are like a Greek chorus of despair. And yet in my town (a working class town) I see folks working, a neighbor (a mechanic) just bought a new car. I don’t want to be pollyanna but something is amiss in the pole numbers.