Biden critics fiddle over 'human infrastructure' while inflation burns through our pockets
Filling up is a pain in the gas. But higher prices mean nothing to fat cats who have seen their wealth soar during the COVID-19 pandemic.
Some progressives will rip President Joe Biden for the “framework” agreement for his so-called human infrastructure plan that was announced Thursday. Why? Because they didn’t get everything they wanted. Boo hoo.
They’ve been as intransigent as the Republicans in standing in the president’s way, and in doing so have done themselves and their far-left brand harm. Governing is about making choices. The president said no one's getting everything they wanted, “including me.”
Ronald Reagan used to say that there’s nothing wrong with getting 80% of what you want now – you can always come back for the rest later. Meanwhile, Republicans are cackling too, but for a different reason: Their spin is that Biden gave in or retreated on key things he wanted.
Has it ever occurred to them that in politics or business, when you’re negotiating, you always ask for more than what you’re willing to settle for? Plus, there’s the added bonus of appearing to be flexible and compromising. Biden turns 79 on Nov. 20. This isn’t his first rodeo. He is moving the needle on some very big things.
Inflation crippling America's finances
Republicans have also been gleeful at all the bickering among Democrats. With each passing day, this, not to mention the country’s mounting economic problems, increases the likelihood of a GOP takeover of the House a year from now.
And what of those economic problems? The big picture is troubled. The government said Thursday that the economy grew at a 2.0% pace in the third quarter, a sharp slowdown from the first half of the year. Consumer spending – about two-thirds of all economic activity – declined, thanks in no small part to the end of pandemic aid to businesses and individuals.
But consumers can only cut back so much, because inflation is on the march. Filling up is a pain in the gas: AAA says the average price of a gallon of regular is $3.40 nationwide, up 60% from a year ago. Food prices are up 4.6% from a year ago. Inflation as a whole is up by the most in 13 years.
There’s more. The Energy Department warns we’ll have to pay "significantly" more to heat our homes this winter.
Higher prices for milk, bread and gasoline mean nothing to fat cats who have seen their wealth soar as the stock market keeps hitting new highs. The wealthiest 10% of Americans own 89% of all U.S. stocks, after all. And get this: The top 1% have added a staggering $6.5 trillion in wealth since the pandemic began, according to the latest data from the Federal Reserve.
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What about everyone else? The Fed adds that the bottom 90% of Americans, who held about 11% of stocks, added $1.2 trillion in wealth over the same time.
On top of the horrible death toll from COVID-19 – more than 745,000 and counting as of Sunday night – the above data shows that the pandemic has made one of our greatest problems far worse, namely the humongous wealth gap between a small group of Americans and everyone else.
A troubling future for Americans
Think the super wealthy care if gas is up a buck? But to tens of millions of Americans, it’s a very big deal. As of last year, says a separate Fed study, nearly a third of Americans would have trouble covering an unexpected $400 expense – an auto repair, a trip to the doctor, a plumber.
So when gas, bread, milk, eggs and all the rest are up, millions of people, tens of millions of people, have to make serious choices.
Arguably, the most serious choice that many Americans have made is to quit working in order to stay home and take care of their children. Before going any further, let’s dispense with the ignorant conservative notion that this is because these people are lazy or aren’t incentivized to work because they got short-term pandemic aid from the government.
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Many economists say this is rubbish. So why are people quitting jobs? There are numerous reasons. Here are two big ones:
►Workers, especially those who are older, are quitting because of COVID-19. Even if they’re vaccinated, they don’t want to be exposed to added risks from numbskulls who selfishly refuse to wear a mask in public or get vaccinated themselves.
►The high cost of child care. If the cost of finding someone safe and reliable plus the cost of commuting to work is barely covered by the wages from that work, that’s a wash. This helps explain a stunning data point in the Labor Department’s September jobs report – about 300,000 women over the age of 20 left the work force.
Three-hundred thousand in just one month. Here’s a thought: Perhaps conservatives should be happy that more moms are doing what conservatives have long urged – staying home to take care of their kids.
Paul Brandus is the founder and White House bureau chief of West Wing Reports and a member of Paste BN's Board of Contributors. His latest book is "Jackie: Her Transformation from First Lady to Jackie O." Follow him on Twitter: @WestWingReport