Written Jul 22:
A short time back I was very optimistic
about Biden’s administration policies and the outlook for the next
election. His focus on vaccinations was working. His 3-way
policy of America Rescue Plan, Jobs Plan (infrastructure) and Family Plan
(anti-poverty and social safety net improvements) made sense.
The first part American Rescue Plan was
done through reconciliation which was the right move. The final bill had
only a few concessions to the more moderate Dem Senators. Biden
said it might be “too big” but that was a risk he was willing to take as
opposed to it being too small. Not it looks like it was a too big and we
have some “transisent” inflation but by and large this was a progressive,
pragmatic and popular bill.
Next up was the American Jobs Plan which
Biden negotiated as a bipartisan bill. This was also a good
idea. It may be a little smaller than some wanted but it looked
progressive, pragmatic and popular.
The next step would be to take bows for
an improving job market, a strong stock market, reduction in child poverty from
the American Rescue Plan’s child tax credits. Then take another bow
for negotiating a bi-partisan infrastructure bill which eluded Obama and
Trump. Then take another bow for having a sane foreign policy and trade
policy.
The American Family Plan should have been
on the back burner with the idea that the Senate would use reconciliation to
pass a Dem bill in 2022. The Dem caucus would be informed that this bill
would be passed and would include some of the non-physical infrastructure
elements that the Jobs Plan left out. But the Dem leaders should have
kept a low profile on this and given vague answers. Eventually
the bill would strike a balance of Sanders and Manchin which no matter
how it turned out would be a victory for Biden in 2022. No one who wants
to win in 2022 wants Sanders to write this bill.
Then the unforced error. Publicly
tying the bipartisan American Jobs Plan with the upcoming partisan American
Family Plan.
So now we have uncertainty over the Jobs
plan. The Rescue plan is being critized for temporarily high inflation
and some dislocations in the job market. The Family Plan is being
critized for the large increase in spending and in the deficit even before the
size of the bill has been determined. We know that it is
hypocritical for the GOP to complain about deficits but we also know that the
general public has a short memory.
Bottom line - The Dems gave the GOP
some actual policy talking points. Unforced error.
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