Every indication suggests that President Joe Biden will continue pushing his economic vision without offering concessions to House Republicans.
Key Details
- President Biden gave his third State of the Union address Tuesday night—discussing the state of the economy, social issues, and how he plans to use the federal government to benefit Americans.
- His economic proposals include calls for a 4% excise tax on stock buybacks, a billionaire tax, and a push for domestic manufacturing.
- In the days following the speech, Biden has not walk backed any of his proposals. Despite losing the House of Representatives in the 2022 midterms, the president has not altered his spending policies and sweeping reform proposals.
Why It’s News
The aftermath of the midterms has emboldened President Biden. Despite numerous signals that he was expected to lose both houses of Congress, an upsurge in millennial votes and apathy toward candidates backed by former President Donald Trump meant only that Republicans gained a small majority in the House and lost seats in the U.S. Senate.
According to his aids, Biden believes his message of economic protectionism, environmental reform, tax increases, heavy spending, and increased federal aid is a winning message, The New York Times notes.
At a time when the Federal Reserve is raising interest rates in order to tame inflation, the president makes no mention of what the added spending will do to the economy—given that pouring so many more billions into money supply is likely to stoke inflation once again.
Notable Quote
“We’re building an economy where no one’s left behind. Jobs are coming back. Pride is coming back because of the choices we made in the last several years. You know, this is, in my view, a blue-collar blueprint to rebuild America and make a real difference in your lives at home,” says Biden.
The Problem
Very few of Biden’s priorities and legislation are likely to pass the House of Representatives for the duration of this presidential term. But Biden is still in a position to continually push House Republicans to fall in line and continue advancing many of the projects he began in late 2022—including the Inflation Reduction Act and Student Loan Forgiveness.
It is unlikely that any such legislation will pass, but GOP efforts to overturn his previous legislation and executive orders outside the courts will also likely be fruitless.
Biden also has reelection concerns to consider. While he is confident in the appeal of his message, he is betting that the economic recovery and recession fears over the next year and a half will not be harmful enough to affect his campaign, The New York Times notes.
