Presidents use this platform to sell their accomplishments – and make a case for future plans. And Biden is eager to shift the conversation from his political troubles, such as the classified document fiasco or the recent Chinese spy balloon uproar.
This was Biden’s best chance to talk frankly with the country – and set the tone with a new and divided Congress. But the big-government solutions he offered failed to adequately address pressing concerns, including the ongoing financial difficulties faced by many citizens.
And his words may have deepened political division, despite his calls for unity.
It’s all about the economy
The economy remains one of Biden’s biggest challenges, despite his sunny picture of the improving outlook. Americans aren’t convinced that all is hunky-dory.
Inflation is still at 40-year highs, and interest rates are up as the Fed seeks to combat rising prices. While the inflation rate is gradually decreasing, many people are still struggling with buying their groceries and paying their bills.
In December, a USA TODAY/Suffolk University poll found 45% of registered voters said the country was in a recession; 15% said it was in a depression; 20% identified stagnation.
That’s hardly a rosy picture.
Similarly, a recent ABC News/Washington Post poll found 40% of Americans say they’re worse off financially under Biden, the highest number in nearly 40 years of the poll.
Bigger government not the answer
As Biden moves toward a formal reelection announcement, dissatisfaction with the economy – along with other factors, including the president’s age (now 80) – is leading many voters, including Democrats, to seek another option.
Rather than offer ideas that could further ease inflation or earn the support of the GOP-controlled House, Biden instead made a hollow call for Republicans to “work together” with him by aiding Big Labor, raising taxes on the wealthy and corporations, and extending social programs.
These are “solutions” more in line with far-left progressives and a nonstarter for conservatives. Plus, additional taxing and spending would only put more pressures on an already fragile economy.
What does ‘unity’ mean to Biden?
Throughout his presidency, Biden has paid lip service to the ideals of bipartisanship and unity. And he has painted himself as someone who can work across the aisle and get deals done.
“The people sent us a clear message,” Biden said Tuesday. “Fighting for the sake of fighting, power for the sake of power, conflict for the sake of conflict, gets us nowhere.”
Those words will be put to the test. During the first two years of his presidency, Biden didn’t have to work with a divided Congress. Now he does, and it’s already looking dicey.
Just weeks into his new leadership role, Republican House Speaker Kevin McCarthy has made it clear that he’s planning to use raising the debt ceiling as leverage for budget cuts. Biden and Democrats, however, have said that there’s no way they’re going to give in to demands or negotiations.
This is a great opportunity for Biden to live up to his lofty goals, but I doubt he’ll rise to the challenge.
Biden looks to 2024, not working with GOP
Some compromise is going to be necessary on both sides, and I’m sure Biden doesn’t want to push the country to the brink of default just as there are some signs of economic improvement.
Yet despite his calls for unity and preserving the “soul of the nation,” Biden has contributed to the country’s division. In a speech last fall, he called most Republicans – anyone who buys into the “MAGA” philosophy – semi-fascists. He continued digs against the GOP in this speech, too.
In advocating his “blue-collar blueprint to rebuild America,” Biden in the State of the Union did not offer a bipartisan agenda. Rather, he laid the groundwork for his 2024 campaign.
OTTAWA – The parliamentary budget officer says the federal government likely failed to keep its deficit below its promised $40 billion cap in the last fiscal year.
However the PBO also projects in its latest economic and fiscal outlook today that weak economic growth this year will begin to rebound in 2025.
The budget watchdog estimates in its report that the federal government posted a $46.8 billion deficit for the 2023-24 fiscal year.
Finance Minister Chrystia Freeland pledged a year ago to keep the deficit capped at $40 billion and in her spring budget said the deficit for 2023-24 stayed in line with that promise.
The final tally of the last year’s deficit will be confirmed when the government publishes its annual public accounts report this fall.
The PBO says economic growth will remain tepid this year but will rebound in 2025 as the Bank of Canada’s interest rate cuts stimulate spending and business investment.
This report by The Canadian Press was first published Oct. 17, 2024.
OTTAWA – Statistics Canada says the level of food insecurity increased in 2022 as inflation hit peak levels.
In a report using data from the Canadian community health survey, the agency says 15.6 per cent of households experienced some level of food insecurity in 2022 after being relatively stable from 2017 to 2021.
The reading was up from 9.6 per cent in 2017 and 11.6 per cent in 2018.
Statistics Canada says the prevalence of household food insecurity was slightly lower and stable during the pandemic years as it fell to 8.5 per cent in the fall of 2020 and 9.1 per cent in 2021.
In addition to an increase in the prevalence of food insecurity in 2022, the agency says there was an increase in the severity as more households reported moderate or severe food insecurity.
It also noted an increase in the number of Canadians living in moderately or severely food insecure households was also seen in the Canadian income survey data collected in the first half of 2023.
This report by The Canadian Press was first published Oct 16, 2024.
OTTAWA – Statistics Canada says manufacturing sales in August fell to their lowest level since January 2022 as sales in the primary metal and petroleum and coal product subsectors fell.
The agency says manufacturing sales fell 1.3 per cent to $69.4 billion in August, after rising 1.1 per cent in July.
The drop came as sales in the primary metal subsector dropped 6.4 per cent to $5.3 billion in August, on lower prices and lower volumes.
Sales in the petroleum and coal product subsector fell 3.7 per cent to $7.8 billion in August on lower prices.
Meanwhile, sales of aerospace products and parts rose 7.3 per cent to $2.7 billion in August and wood product sales increased 3.8 per cent to $3.1 billion.
Overall manufacturing sales in constant dollars fell 0.8 per cent in August.
This report by The Canadian Press was first published Oct. 16, 2024.
