The Russia-Ukraine standoff has taken over Joe Biden’s presidency, at least for now. There may be a silver lining to that, because much of Biden’s domestic agenda is falling apart.
The “build back better” legislation that was supposed to be a hallmark of Biden’s first year or two now seems headed for recycling. Axios reported on Feb. 17 that Democrats in the Senate—where the bill got stuck—have given up on BBB because inflation is getting in the way.
There are two prongs to that. First, a few Democrats, including mudsticker Joe Manchin of West Virginia, feel another big spending bill would worsen inflation, which is already at a frothy 7.5%. Biden himself has argued otherwise, but Democrats turned out to be wrong about last year’s big relief bill, which despite their protestations, probably has contributed to runaway prices in 2022.
The second problem is that inflation is now the top overriding concern for many Americans, and Democrats feel they need to do something to address the issue more directly, or at least pretend to try. So the lofty goals of BBB—curtailing child poverty, stoking green energy, aiding working parents—have now yielded to targeted inflation-busting efforts.
One (bad) idea is suspending the federal gas tax of 18.4 cents per gallon, to help lower pump prices. But only some Democrats favor that, and they tend to be ones locked in tight reelection races who need to look woke on inflation. Other Democrats say it makes no sense to lower carbon energy costs if you’re also trying to promote green energy. Republicans mostly oppose a gas-tax holiday, and since Democrats are divided, that means there won’t be one.
Other Democratic ideas include the suspension of state sales taxes on some goods, an extended tax deduction for mortgage insurance, and new ways to lower prescription drug costs. They may also propose legislation to punish corporations for price-gouging, even though there’s scant evidence of that. These are weak ideas because they don’t address the root causes of inflation, which include supply-chain disruptions, excessive demand for goods and loads of monetary and fiscal stimulus. They’re also unlikely to make much of a difference, if any of them get enacted. But Democrats are hoping voters will grade them for effort, not for performance.
They’ll probably fail at that, too. Many analysts think Democrats are likely to lose their majority in the House of Representatives in the upcoming midterm elections, with perhaps even odds they’ll lose control of the Senate as well. Politico recently reported on why. Democrats’ own polling shows that swing voters generally support Democratic policies, but find the politicians themselves “judgmental” and “preachy.” Axios summarized the problem as progressive politics backfiring.