The October inflation report might spell doom for what's left of Biden's agenda
The latest news on inflation is bad: Consumer prices were up in October by 6.2 percent over a year ago, so high that American workers are losing ground despite recent wage gains. That's grim news for Democrats who have lately been feeling the wrath of voters — but also because it might stymie their efforts to pass the "Build Back Better" social welfare bill.
Passing that bill, of course, relies on the good graces of Sen. Joe Manchin (D-W.Va.). And while Manchin has been negotiating with his fellow Democrats to get that bill down to a size and shape that both sides find acceptable, he has long signaled his ambivalence about passing anything at all.
His stated reason: Inflation.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Manchin has been making the case for months that the government has already overheated the economy with its spending on pandemic-era safety net efforts like stimulus checks, unemployment, and other big-ticket items. In September, he called for a "strategic pause" on passing any more major spending bills instead of "rushing to spend trillions" and possibly making the problem worse.
After the latest inflation report was released Tuesday morning, Manchin was feeling some vindication. "By all accounts, the threat posed by record inflation to the American people is not 'transitory' and is instead getting worse," the senator tweeted. "From the grocery store to the gas pump, Americans know the inflation tax is real and D.C. can no longer ignore the economic pain Americans feel every day."
That's not a direct threat to kill the BBB bill, but it is a strong hint that Manchin isn't in any real hurry to get the job done.
The problem with Manchin's position, though, is that it's not clear that slowing government spending will put much of a dent in inflation, which is driven to some extent by the now-legendary supply chain snarls. One example: Vehicle prices have skyrocketed in the last year — nearly 10 percent for new cars and more than 25 percent for used autos. But those prices are driven by a shortage in computer chips. How will, say, killing the proposal for paid family leave help that situation?
Moreover, the rise in inflation doesn't suddenly mean Americans no longer need what's in the BBB bill — things like childcare assistance and an extension of child tax credit payments, climate change mitigation, Medicaid expansion, and affordable housing. For many families, inflation will make their needs for such help even more insistent. It shouldn't be an excuse to kill off what's left of President Biden's agenda.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Joel Mathis is a freelance writer who has spent nine years as a syndicated columnist, co-writing the RedBlueAmerica column as the liberal half of a point-counterpoint duo. His work also regularly appears in National Geographic, The Kansas City Star and Heatmap News. His awards include best online commentary at the Online News Association and (twice) at the City and Regional Magazine Association.
-
Is the Supreme Court about to criminalize homelessness?
Talking Points The court will decide if bans on outdoor camping are 'cruel and unusual'
By Joel Mathis, The Week US Published
-
Myanmar: the Spring Revolution and the downfall of the generals
Talking Point An armed protest movement has swept across the country since the elected government of Aung San Suu Kyi was overthrown in 2021
By The Week Staff Published
-
Israel hits Iran with retaliatory airstrike
Speed Read The attack comes after Iran's drone and missile barrage last weekend
By Peter Weber, The Week US Published
-
Is there a peaceful way forward for Israel and Iran?
Today's Big Question Tehran has initially sought to downplay the latest Israeli missile strike on its territory
By Sorcha Bradley, The Week UK Published
-
Sudan on brink of collapse after a year of war
Speed Read 18 million people face famine as the country continues its bloody downward spiral
By Peter Weber, The Week US Published
-
How powerful is Iran?
Today's big question Islamic republic is facing domestic dissent and 'economic peril' but has a vast military, dangerous allies and a nuclear threat
By Harriet Marsden, The Week UK Published
-
US, Israel brace for Iran retaliatory strikes
Speed Read An Iranian attack on Israel is believed to be imminent
By Peter Weber, The Week US Published
-
'So much for the triumph over inflation'
Instant Opinion Opinion, comment and editorials of the day
By Harold Maass, The Week US Published