Inflation and Gas Shortages Highlight Dangers Potential to Biden’s Agenda: NPR

President Biden talks about economics at the White House on Monday. The Biden administration argues that higher-than-expected inflation is temporary.

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President Biden talks about economics at the White House on Monday. The Biden administration argues that higher-than-expected inflation is temporary.

Evan Vucci / AP

President Biden continues to get good grades for solving the most pressing problem of the day – the coronavirus pandemic. He also stays on average above 50% for his attitude to the economy, which is closely related to COVID-19.

But as things get bigger and get back to normal – with the Centers for Disease Control and Prevention. new mask guide for fully vaccinated people, crises or potential crises are on the horizon.

In a couple of months it became clear that the Americans less confidence in the president’s handling of immigration, For example. Was influx of migrantsincluding unaccompanied minors on the southern border of the United States, and the Biden administration has struggled to respond.

Some new things have been added to Biden’s plate this week, including inflation, gas shortages and renewed fighting in the Middle East between Israel and the Palestinians. They threaten to disrupt an agenda that has remained largely unchanged so far.

Asked about this Friday at the White House, spokeswoman Jen Psaki replied, “This is exactly what he was chosen for – leading a country through a multitude of crises,” and that he has put together a team “to prepare for.” these moments. “

Full plate, but empty pump

Inflation has been the economic word of the week. Consumer prices went higher than expectedwhich caused some tremors down Wall Street.

Gas prices are on the rise and the resumption of travel this summer is likely to keep them relatively high. Long gas pipelines on the east coast following a ransomware attack on a major pipeline in the United States sparked panic at a gas station this week.

The colonial pipeline has brought my entire system back onlineand Biden said he expects improvement this weekend “and early next week.”

“Don’t panic, No. 1,” he said. called on Thursday. “I know it can be extremely stressful to see queues at pumps or gas stations where there is no gas, but it is a temporary situation.”

However, people clearly panicked. There was fight video It broke out between a man and a woman over their places in line at a gas station in North Carolina. In Alabama, a couple was caught filling several cans of gasoline and throwing them into the back of their car. A South Carolina woman who was saving up gas, tried to dodge the police, crashed her car and Caught fire…

Add to all this worry less-than-expected job growth at the beginning of the month and growing fighting in the Middle East…

Referring to the fact that he wanted to show a “perspective” of 266,000 jobs added, Biden noted that “the economy is moving in the right direction, but it is clear that we still have a long way to go.”

He noted that 1.5 million new jobs have been created in the economy since he came to power, “the largest number of jobs created in the first three months of any presidency in our history.”

Of course, the pandemic and the political response to it have left a very deep hole. The workforce is still 8 million fewer than it was before the pandemic.

Stronger GOP negotiating hand?

Critics are also sounding the alarm about the amount of money invested in the economy by Biden’s COVID bailout plan.

“There is so much money in the economy that demand is high, outstripping supply, and this is starting to push prices up,” Senator John Thune, RSD, said this week before inflation data was released. “We need to be a little more careful and restrained.”

Republicans definitely feel their bargaining hand is stronger than it was a couple of weeks ago when it comes to the infrastructure deal.

Biden put forward a plan for about $ 2 trillion, which is unrealistic for Republicans. They see too many foreign objects in it, for example, electric car charging stations and other climate-related measures.

Biden argues that these things are necessary to move the economy where it needs to grow in the future, and that this investment is not unlike when the railroad and interstate highway system was first proposed.

However, Biden appears to be pushing for an infrastructure deal with Republicans. He held two meetings this week trying to negotiate a bipartisan agreement.

Republican leaders want to close a deal on so-called “traditional infrastructure” – mainly to repair roads and bridges. They have swam that they are willing to invest up to $ 800 billion, less than half of what Biden wants, but $ 200 billion more than GOP senators had. originally suggested…

Of course, the parties have not yet agreed on how to pay for it. Ironically, given the gas pipeline panic this week and rising gas prices, Senate Republican leader Mitch McConnell would like to raise the gas tax.

The gas tax, which mainly funds federal infrastructure measures in the country, not grown since 1993 and is not indexed for inflation.

Senate Minority Leader Mitch McConnell (left) and House Minority Leader Kevin McCarthy speak to reporters outside the White House after meeting with President Biden Wednesday.

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Senate Minority Leader Mitch McConnell (left) and House Minority Leader Kevin McCarthy speak to reporters outside the White House after meeting with President Biden Wednesday.

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But will it make a difference to Americans when they pay more to refuel when traveling on Memorial Day weekend? The Biden administration has already struck it off the list as a potential source of income for the plan.

“No, this is not part of the conversation about this infrastructure bill,” said Transport Minister Pete Buttijig. told CNN Monday…

Democrats are largely opposed to so-called user fees because they are considered regressive. In other words, they do more damage to those who earn less.

Temporary surge or tip of the iceberg?

Biden has no control over much of the new problems, and the White House views inflation as a temporary surge associated with COVID, or hopes it will.

“Economists, both inside and outside government, expect the impact of our proposed investments to be temporary, temporary and that the benefits far outweigh the risks,” said a spokesman for Psaki. said Thursday…

But Republicans have seized on inflation and gas prices and are already trying to compare Biden with former President Jimmy Carter, who faced unprecedented inflation and oil shortages that led to the gas crisis.

“I see that everyone compares Joe Biden to Jimmy Carter. I think this is very unfair to Jimmy Carter, “said former President Donald Trump, who is still the top Republican presidential contender in 2024.” Jimmy handled crisis after crisis wrong, but Biden CREATED crisis after crisis “.

Let’s be clear: this is not yet close to the 1970s. Inflation rose by 4.2% this week not fourteen%…

But that doesn’t mean there is no potential political issue for Biden.

The president has shown a willingness to stay on course, but every president has to deal with unpredictable crises.

Biden’s ability to deal with them is about to be tested.