Biden administration faces desperate situation to solve economic problems

Illustration: Chen Xia / Global Times

American voters have expressed disappointment with President Joe Biden and the Democratic Party he leads, as Democratic candidates in a multitude of American states were pummeled in last Tuesday’s election. The poll results in Virginia and New Jersey, two traditionally blue states that favor Democrats, have become the most recent marker of political peril for Biden and his fellow Democrats.

Donald Trump’s Republican supporters won the election. Major newspapers in the United States are calling on the Biden administration to “wake up immediately”, to roll up its sleeves to solve the problems facing the country, or they could face the same beating in the midterm elections in 2022 and the next presidential election in 2024.

Although they’ve only been in the White House for less than 12 months, Biden’s poll numbers are steadily declining. The reasons American moderates deserted Biden are puzzling to Democratic officials, but a mantra from former Democratic President Bill Clinton helps nail the coffin – “It’s the economy, stupid.”

The Biden administration is good at rhetoric, but weak at action, and the US economy is stuck in the doldrums. During the 2020 presidential campaign, Biden hit his chest bragging about his ability to restrict and stifle the spread of the coronavirus in the United States, and American voters listened to him and believed him.

But 11 months have passed, the onslaught remains unabated, with daily viral infections in the tens of thousands, and virus-related deaths remaining high at over 1,200 a day, and many nervous parents are staying at home. to accompany their children. The lingering epidemic, if not brought under prompt control by the administration, will cast a shadow over all aspects of American daily life, such as increasing cases of mental health issues and homicides.

And, the US economy remains on edge as the growth rate from July to September fell to just 2%, while high inflation is setting in – a side effect of extraordinarily loose monetary and fiscal policies. from the US government. The Federal Reserve has been reluctant to “cut back” on its extravagant bond buying programs and has so far refused to raise interest rates.

With more than $ 1.2 trillion in print and an additional $ 3.4 trillion in US government budget spending in just 20 months since April 2020, the money market is inundated with massive liquidity. This has led to uncontrolled spikes in consumer prices, with the high price of gasoline at the pump and the rise in mortgages and rents particularly painful for the middle class and young families. Rising food prices have become a particularly painful point for the country’s working poor.

For months, the US Federal Reserve tried to allay American concerns by claiming inflation would be “transient” or temporary, but Labor Department figures have repeatedly proven the central bank wrong. It is quite possible that inflation will remain high until 2022, reducing the purchasing power of ordinary voters.

Polls in the United States have found the economy and the coronavirus to be the two main issues Americans care about the most. With the Biden administration performing poorly on both, it’s not hard to explain the Democrats’ beating at the polls last week.

Moderate Democrats in the US Congress are beginning to suspect the administration’s ability to tackle the mess the country faces. “Nobody elected him FDR (Franklin D. Roosevelt). They elected him to be normal and stop the chaos,” said congresswoman named Abigail Spanberger of the Democratic Party.

Many American voters have increasingly discovered that the Biden administration is unwilling to address their frustrations close to home, such as Covid19, inflation, jobs, income disparities, illegal border crossings and the rise of racism and street violence. Instead, the administration has shown great interest and fanfare in launching ideological clashes with China and Russia. Biden’s obsession with ideological difference led him to organize a so-called “Democracy Summit” in Washington in December.

At nearly every international meeting, Biden and his lieutenants have developed a penchant or syndrome to criticize and vilify China. Biden himself has repeatedly said his government will engage in “fierce competition” with China, which has led to growing tensions between the world’s two largest economies. This insistence on competition or rivalry has blinded the administration to the fact – that the two economies are closely linked and that by pushing back Chinese products, inflation in the United States is rising.

Almost every American business has called on the Biden administration to demand a truce to its predecessor Donald Trump’s trade war with China, as exorbitant tariffs on Chinese imports and China’s exorbitant tariffs on American goods disrupt global supply chains, which has made US businesses and consumers more difficult. However, determined to continue an ideological fight with China, the US government is stuck in Trump’s shadow and will not remove tariffs and other punitive measures imposed on many Chinese tech companies.

Today the United States faces the terrible prospect of inflation and a sharp slowdown in growth, which, if not resolved quickly, will deteriorate into so-called stagflation – a nightmarish economic disaster. that governments would generally do whatever they can to avoid.

While a large number of American voters worry or even get angry about the actions of the Biden administration, a consensus is growing in the United States that Democrats will be punished again in 2022. If the government refuses always taking action to deal with soaring prices and scarcity of goods, voters, dissatisfied with the direction of their country, will no doubt express their anger once again. And the countdown has begun.

The author is an editor at the Global Times. [email protected]

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