As President Joe Biden approaches the end of his term, a distinct divide exists between his policy achievements and his public image. Throughout his presidency, Biden has concentrated on long-term goals, leading many voters to feel he has not adequately tackled pressing issues such as soaring inflation, which reached alarming levels in 2022, and the significant number of illegal crossings at the southern U.S. border.
Biden’s tenure concludes at a time when several significant domestic policies are just beginning to take effect, suggesting that the narrative of his presidency will extend well into the future, beyond his handover of the White House to Republican Donald Trump. Here’s a breakdown of key aspects of Biden’s domestic agenda:
Combating the pandemic’s aftermath
Soon after taking office, Biden, along with Democratic leaders in Congress, introduced a $1.9 trillion relief package aimed at steering the country out of the COVID-19 crisis. This initiative provided direct payments of $1,400 to most households and allocated $350 billion to assist state and local governments, as well as $130 billion to support schools. Families benefited from an expanded monthly child tax credit and a temporary eviction ban for renters. Additionally, forgivable loans for small businesses were available to maintain payrolls and bolster unemployment benefits. A significant portion of the funding, $14 billion, focused on distributing COVID-19 vaccines, resulting in around 70% of Americans being fully vaccinated, as reported by health authorities. This financial support facilitated a remarkable economic rebound, with 17 million jobs created, surpassing pre-relief expectations by over 5 million jobs. However, public sentiment increasingly shifted towards concerns about rising inflation.
Navigating inflation challenges
The inflation that characterized Biden’s presidency emerged from various, intertwining factors rather than a single cause, and no straightforward solution satisfied the public’s demands. Critics, particularly from the Republican side, attributed rising inflation rates to the pandemic relief measures, citing forecasts by economists like Larry Summers that claimed Biden’s spending had flooded the economy with excess money. This critique overshadowed complex realities, including issues in global supply chains during the pandemic, which resulted in factory closures and shortages in key commodities like computer chips. Consequently, consumer prices surged due to supply constraints. The acceleration of consumer prices was exacerbated by external events, such as Russia’s invasion of Ukraine, which caused energy and food costs to spike. In June 2022, inflation hit a 40-year high of 9.1%. Although the Federal Reserve raised interest rates to combat inflation, the annual rate remained at 2.7% in November of the following year. Despite Biden’s assertion that inflation was decreasing without a recession, this message resonated weakly with the public.
Border security challenges
Concurrently with economic improvements, the U.S. witnessed a notable surge in illegal immigration along its southern border with Mexico. This influx placed immense pressure on various states and cities while the Biden administration attempted to negotiate with Congress for enhanced border security resources. Despite an agreement reached with Senate Republicans, setbacks led to delayed executive actions to mitigate the border crisis. By the end of fiscal 2022, arrests at the border exceeded 2 million, a trend that slightly declined to 1.53 million in fiscal 2024. Claims from Republican lawmakers highlighted rising homelessness and increased housing costs linked to immigration, although some economic growth was attributed to the boosted labor market facilitated by migration.
Infrastructure efforts fall short
The term “infrastructure week” became a common joke during the Trump administration, as their efforts were often overshadowed by various controversies. In contrast, Biden successfully passed a $1 trillion infrastructure deal in November 2021 with bipartisan support. To date, 66,000 projects with an estimated cost of $568 billion have been announced. However, many large-scale projects face significant delays, hindering immediate benefits that could have swayed voter approval. Despite the quick establishment of new programs, tangible impacts on citizens’ lives have been slow to materialize, affecting Biden’s efforts to promote electric vehicle adoption through allocated funds for charging station infrastructure.
Addressing technological competition with China
For years, China had outpaced U.S. manufacturing largely due to substantial governmental investment in production facilities. In response, the Biden administration pushed through bipartisan legislation in 2022 dedicated to invest $52 billion in new semiconductor factories aimed at bolstering U.S. chip production. This initiative was essential as the demand for advanced chips intensified, particularly in light of rising tensions in global supply chains. Furthermore, as artificial intelligence continued to evolve as a significant economic player, Biden’s administration navigated this landscape with an executive order in 2023 designed to regulate the technology’s development. However, like infrastructure projects, these manufacturing initiatives are anticipated to take time before they yield substantial outcomes.
The Inflation Reduction Act: Misleading Title?
In August 2022, Biden implemented the Inflation Reduction Act, a measure that critics argue did little to alleviate immediate inflation pressures and primarily served as a compilation of various policies. The act encompassed $783 billion in incentives for renewable energy and strategies to tackle climate change while also offering subsidies for health insurance through the Affordable Care Act. Biden branded this legislation as the largest single investment in climate action globally, albeit this claim also highlighted the historical lack of substantial climate initiatives. To finance the act, Medicare was empowered to negotiate lower drug prices, set to take effect in 2026, alongside changes in tax regulations aimed at enhancing IRS revenue from wealthier citizens. Ultimately, Biden acknowledged that the emphasis on climate provisions outweighed the short-term messaging surrounding inflation.
Federal initiatives on economic issues
In tackling pressing economic concerns, Biden adopted a dual approach, aiming for bipartisan accomplishments encompassing gun policy reform, healthcare for veterans, and marriage equality. Concurrently, his administration pursued regulatory changes across federal agencies designed to benefit consumers, particularly by uncovering hidden fees across various industries. Recent initiatives included regulations to eradicate $49 billion in medical debt from credit reports and limitations on overdraft bank fees. Additionally, prominent housing sites committed to disclosing hidden rental costs following nudges from the Department of Housing and Urban Development, alongside new airline regulations ensuring cash refunds for significant flight alterations.
Growth of national debt
As Biden’s term concludes, projections regarding the national debt appear troubling. The Congressional Budget Office has indicated that servicing the national debt has become three times more expensive compared to when Trump was in office. One major contributor to this increase stemmed from the pandemic, which saw the budget deficit soar to $3 trillion in 2020. Although the deficit fell to $2.77 trillion the following fiscal year due to additional pandemic-related funding, it has not reverted to pre-pandemic levels, with fiscal 2024 projected at a shortfall of $1.83 trillion. While the Biden administration has proposed tax hikes aimed at curbing the debt, Republican opposition has stalled these efforts, with criticisms pointing to Biden’s student debt plan as a factor exacerbating the national debt.
In conclusion, the complexities of Biden’s presidency reveal both achievements and challenges, leaving a mixed legacy that will continue to evolve even after he exits the White House.
