For Biden, how to help mangled economy is next obstacle

For Biden, how to help mangled economy is next obstacle

SeattlePI.com

Published

BALTIMORE (AP) — Joe Biden will inherit a mangled U.S. economy — one that never fully healed from the coronavirus and could suffer again as new infections are climbing.

The once robust recovery has shown signs of gasping after federal aid lapsed. Ten million remain jobless and more layoffs are becoming permanent. The Federal Reserve says factory output dropped.

Parents cannot return to work as childcare centers have shuttered. Restaurants and local retailers are draining whatever cash reserves are left--with many owners wondering if the next week might be their last. One in six restaurants was already closed in September, according to an industry survey.

Biden will also be facing an American public with decidedly different views about their own financial well-being, with higher income families weathering the pandemic reasonably well and those earning far less in increasing economic peril.

It will in some ways be a reprise of when Biden became vice president at the depths of the financial crisis in 2008-09, with possibly fewer tools and less political leverage to press an agenda to both corral the virus and stoke economic growth.

He is expected to somehow inject enough aid to sustain workers, businesses and state and local governments, without necessarily having enough congressional partners who share his concerns. All of this could be the difference between a successful presidency and a floundering one.

It’s unclear whether his victory was enough to tip the Senate to the Democrats — with two Senate seat runoffs in Georgia — and provide a clearer pathway for the money. This means that any efforts to secure another round of aid may depend on Republicans who were already voicing concerns about a rising budget deficit before the election.

Senate Majority Leader...

Full Article