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Biden’s Merry-Go-Round Meetings For Build Back Better Take Another Spin Today

Biden has had dozens of meetings with Progressives separately and in groups and also individually with Senator Joe Manchin and Kyrsten Sinema in an attempt to fit a square key into a round hole.

Biden Hosts Another Meeting

Today we have yet another meeting as Biden Hosts Democrats to Try to Narrow Differences on Climate, Benefits

President Biden signaled more urgency to bridge intraparty divides over the size and scope of Democrats’ social-policy and climate legislation, holding a series of meetings at the White House on Tuesday with progressive and moderate Democrats

Mr. Biden is scheduled to meet with Sen. Kyrsten Sinema (D., Ariz), a key player in the discussions, on Tuesday morning, according to people familiar with the matter, followed by a pair of separate meetings in the afternoon with moderates and progressives. The president is expected to make more calls to lawmakers on Tuesday.

While White House officials have said they believe they are making progress in the talks, deep disagreements remain. Sen. Joe Manchin (D., W.Va.) opposes a central climate-change-related provision in the package, prompting pushback from progressive lawmakers, who have said the legislation must include measures to make significant reductions in U.S. greenhouse-gas emissions.

Lawmakers are also debating imposing income caps on eligibility for key parts of Mr. Biden’s proposal, including the expanded child tax credit. They are grappling with concerns from Ms. Sinema, Sen. Robert Menendez (D., N.J.) and a handful of centrist House Democrats about provisions allowing Medicare to negotiate directly with pharmaceutical companies to lower the cost of prescription drugs.

Mr. Manchin, who spoke by phone with Mr. Biden on Monday, has objected to the clean-electricity performance program, which would provide grants to utilities that increase the amount of clean electricity they generate by at least 4% a year, while penalizing utilities that don’t meet that standard. He has argued that utilities shouldn’t receive federal funds for an energy transition they are already making.

Lawmakers are discussing alternative climate measures, including a tax on carbon emissions. But the Democratic proposals are all over the map; some Democrats are discussing polluter fees; others want Mr. Biden to declare a climate emergency and unilaterally establish policies to cut carbon emissions.

“We have to have something that we can get the support of all 50 of us,” said Sen. Tina Smith (D., Minn.), who spoke with White House officials on Monday morning. But she said that she couldn’t support any plan that doesn’t make meaningful reductions in greenhouse-gas emissions.

Mr. Manchin’s objections to a clean-energy performance program are significant because the program has been core to meeting Mr. Biden’s climate goals. Together, the program and tax incentive.

Amusing Merry-Go Round

This has been going on since June. Biden wants to spend $3.5 trillion while Manchin wants to spend no more than $1.5 trillion.

In addition, Manchin objects to Biden’s energy proposals without which the Progressives threaten to kill the whole thing.

Biden’s Merry-Go-Round Process 

  1. Meet with Manchin
  2. Meet with Sinema
  3. Meet with key Progressives 
  4. Meet with groups of Progressives
  5. Return to step one

It would seem to me that at some point Biden might think of trying something different such as meeting with Manchin and Sinema together.

Biden needs both moderates, not just one of them, and the pair have differences as well. Sinema supports climate change and Manchin doesn’t. Both have overall spending concerns.

Regarding spending, Manchin does not approve of gimmicks like duration cuts knowing full well that once programs are in place they never end.

Progressives also understand that once programs are in place they never end. Thus Progressives do approve of duration limits. 

I fail to see what good staying on the merry-go-round will do.

Free-For-All

Biden just might also consider a free-for-all. That is, get groups 1-3 together in a room all at the same time. 

Let the emotions fly.

Best Thing is Nothing

My own preference is they stay on the Merry-Go-Round until the the midterms at which point the Democrats lose the House and Nancy Pelosi is no longer Speaker.

If the carousel spins that long, the whole thing turns into fairy dust. 

Question of the Day

Q: Why Offer Suggestions Then?
A: Because politicians do not care what I think. Nor do they care what you think. They only care what they think.  

So helpful advice contrary to what I hope happens is meaningless. 

This process has been going on for at least 5 months. Biden should have figured out months ago the current process is not exactly working. But he is not exactly the brightest bulb in the pack.

If by some chance Biden adopts the obvious change, don’t blame me. It will be because someone whose opinion actually matters suggested he try a new tact.

Unfortunately, I expect some sort of deal will eventually merge despite the fact AOC and the Progressives still insist they are indeed willing to kill the whole thing.

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44 Comments
Newest
Oldest Most Voted
Bam_Man
Bam_Man
4 years ago
Enjoy the Klown Show.
Carl_R
Carl_R
4 years ago
Keep in mind that Trump sabotaged the Senate races in Georgia late in the election. If you assume he had a reason, rather than that he just did it for spite (which is possible), the only plausible reason would be that he thought that his chances of making a comeback would be enhanced if the Democrats controlled both houses. If he does have plans to attempt a comeback, he may be better off if the Democrats continue to hold both houses, so it wouldn’t surprise me if he attempts to influence the outcome of house/senate races to achieve that outcome. 
Zardoz
Zardoz
4 years ago
Wouldn’t surprised me if Biden didn’t remember getting on the merry go round in the first place.
KidHorn
KidHorn
4 years ago
We have rampant inflation. The southern border basically is non existent. We have shortages of many essential items. And our president only cares about climate change, forcing vaccines on people who already have immunity, and something called equity. Which is basically racism against white people. And without China and India buying into his plans, nothing we do will make a difference.
Biden is the worst president ever and this is the worst administration ever. It’s not a satire. Even though it seems like one.
Eddie_T
Eddie_T
4 years ago
If the Republican Party is going to survive, they should listen to people like Ryan Girdusky. I think he gets it right here in this op-ed.
Irondoor
Irondoor
4 years ago
Reply to  Eddie_T
He’s probably right, but he proposes no specifics. Politicians are interested in only one thing: winning the next election, not doing something that will be positive for the country for the next 20 years. What you are seeing now from the Democrats is their desperation attempt to enact multi-Trillion $ legislation before they lose their opportunity. And some monstrosity of a Bill will get passed and taxes will go up. That’s all you can really count on.
TechLover1
TechLover1
4 years ago
With the massive spending coming down the pike and huge monthly giveaways, I am thinking about where the macro situation will find equilibrium.
I find myself to be in the high inflation camp as the labor market finds equilibrium, especially for the lower wage jobs. It is clear that the labor market at the bottom end has transformed from what it was pre-covid. Many have retired, many other are getting monthly money from government, rent is being covered for many by the government etc. This means that $15-$20 will be the new norm for low wage hourly rate. It might even go higher until a new equilibrium is found. This means prices for many things will have to rise as well. Many small businesses will fail and supply will diminish still on the way to the new equilibrium.
There may be deflation after that state, but for now, I am firmly in the inflation camp for the next year or two.
It will be a bumpy ride.
Eddie_T
Eddie_T
4 years ago
Reply to  TechLover1
I think cost push inflation is already here to stay…not sure how much worse it gets or when the effects taper off, if at all. But that’s only part of the picture.
Mish and others like Lacy Hunt (and “Tony Bennett”) are correct though about danger of deflation in assets. I expect something a bit worse than stagflation. For want of a better term let me call it “smackflation”…..a scenario where everything we buy stays expensive while stocks and real estate and other risk assets hit a brick wall at some point.
There is a lot of money chasing yield still, and it might not happen this year or even next year. But at some point a recession will pop the ballon and let some air out. Not sure how much, or exactly when. But it looks inevitable. We have a big drag on the economy from COVID still, although the effects are uneven. 
Young people are still going to need to find ways to be financially productive, no matter how philosophically opposed they might be to menial work. Right now is a Wiley Coyote moment for jobs…..at some point reality will have to set in.
Rbm
Rbm
4 years ago
How much did manchin make last year from coal.  592000 in dividends last year alone.  
Eddie_T
Eddie_T
4 years ago
Reply to  Rbm
Manchin is a self-made coal trading entrepreneur who built a successful business from scratch and passed it down to his son, as best I can tell. Whatever he makes is okay with me. His net worth is only listed as being $7.5 million, and he made his money the honest way, before he was a politician. In the Senate, 7.5M only gets you 1to 9th in wealth, btw.
Hell, I might make it to $7.5m if I live a long life. That’s nothing these days.
Eddie_T
Eddie_T
4 years ago
Reply to  Eddie_T
“19th”. sorry, typo.
Casual_Observer2020
Casual_Observer2020
4 years ago
There is no labor shortage. As I’ve said before, a lot of these job openings aren’t openings at all.
whirlaway
whirlaway
4 years ago
Biden is fully aware of what is going on.   He is a right-winger and does not want to do anything about it.    Otherwise, it is a simple matter to put a few things that would help people in AZ and WV in the bill, bring it to a vote on the Senate floor, and dare Manchin and Sinema to vote against it.   
One-armed Economist
One-armed Economist
4 years ago
I’m more constructive and hopeful on this.
Among other things a more progressive tax code – and stop coddling the richest – is entirely fair.
Business Man
Business Man
4 years ago
Do you realize that the Tax Act of 2017 was actually more progressive than the existing code?
Why is it that Democrats want to repeal the SALT deduction cap of $10K?  Are they coddling the poor when doing this?
Please don’t be fooled into thinking that the Democrats — the party of liberal billionaires and tech CEOs — are actually more progressive with their tax policies.  Watch what they do, now what they say.
Eddie_T
Eddie_T
4 years ago
Reply to  Business Man
“Why is it that Democrats want to repeal the SALT deduction cap of $10K? “
How about because it costs me 20K a year, while I got diddly-squat in cuts from the Trump plan?
Business Man
Business Man
4 years ago
Reply to  Eddie_T
LOL. Pay your fair share!
Eddie_T
Eddie_T
4 years ago
Reply to  Business Man
Pretty sure I pay quite a bit more than some billionaires. lol.
Casual_Observer2020
Casual_Observer2020
4 years ago
Reply to  Eddie_T
You picked the wrong business model Eddie. Hedge funds are where its at. 
Eddie_T
Eddie_T
4 years ago
When I was growing up, I didn’t know investment bankers existed, much less aspire to be one. Hehehe.
hhabana
hhabana
4 years ago
Reply to  Eddie_T
Agree with you 100%. How about cutting MIC spending so that we can repeal the SALT deduction cap. 
Eddie_T
Eddie_T
4 years ago
Reply to  hhabana
Okay by me.
prumbly
prumbly
4 years ago
The fact is that those nasty rich people pay nearly all the tax collected, so yeah they should be coddled. Last year SIXTY-ONE PERCENT of people paid ZERO tax – so all those government services they enjoy, all those hand-outs and tax credits, all are paid for by those nasty rich people.
Christoball
Christoball
4 years ago
Reply to  prumbly
I always heard the mantra in response to raising corporate taxes that; “corporations don’t pay for tax increases, but the consumer does.” This is probably true to some extent. I would imagine that the 61% of people not paying taxes are paying for the other peoples taxes through the increased price of everything that the 39% of tax payers own or administrate. If there is in fact 61% of our population having to enjoy handouts there is something wrong with the economy.
Bungalow Bill
Bungalow Bill
4 years ago
James Madison’s veto of the bonus bill comes to mind in all of this, but America does love centrlizing power to Mordor…
I have seen a pattern here. Republicans act all upset about the spending, but when they get into power they actually seem to make it possible for Democrats to raise the bar by matching the previous Democrat spending levels. It’s quite a cycle!
Rbm
Rbm
4 years ago
Reply to  Bungalow Bill

To me it seems a republican tax cut with cutting services is just as bad as the dems spending.  How about this.  Republicans cut taxes and programs to benefit the wealthy which sticks it to the poor in which the dems have to create social programs  so then the republicans can bitch about said programs to their voter base which would probably be better off ( unfortunately) if they voted dem.  Around and around we go  

Jmurr
Jmurr
4 years ago
Reply to  Rbm
Name one service that was cut. 
Tony Bennett
Tony Bennett
4 years ago
“My own preference is they stay on the Merry-Go-Round until the the midterms at which point the Democrats lose the House and Nancy Pelosi is no longer Speaker.”
All eyes on Virginia.
Virginia has turned solid blue past 20 years.  Not many races this November, but Va’s governor is one.  Former governor McAuliffe had a big lead back in the summer.  Now?  Still leading but race has tightened to within margin of error.  If Youngkin can pull off (major) upset it will send shock wave thru DC.
Business Man
Business Man
4 years ago
Reply to  Tony Bennett
I guess we’ll see how many “drop box” and “mail-in” votes set records for McAuliffe, won’t we?  He’ll pull it out at the last minute!  It will be amazing!
Eddie_T
Eddie_T
4 years ago
Reply to  Tony Bennett
It is an interesting race. I don’t know what I think about Youngkin. He needs the Trump base, but he is trying awfully hard not to say the T word at all, from what I can see. I don’t blame him for that……but he seems to be connected behind the scenes.
TheCaptain
TheCaptain
4 years ago
Well Mish, all you did was complain about trump.  So do you accept any responsibility at all for this disaster?  Just wondering.
dbannist
dbannist
4 years ago
Reply to  TheCaptain
I complained about Trump for 4 years myself and I’m a deeply red conservative.

One can complain about Trump and also complain about Biden.

Both are idiots.

Business Man
Business Man
4 years ago
Reply to  dbannist
Yes, but one is actively destroying the economy, culture and country, while the other is just a blowhard who happens to have policies that are pretty good.
So you chose the former?
dbannist
dbannist
4 years ago
Reply to  Business Man

I voted for Trump.And given the choices, I’d do so again.It doesn’t mean I think Trump is a great president.

Rbm
Rbm
4 years ago
Reply to  dbannist

Easy to blame one person.  When it comes down to it most of these problems are congresses reasonability. 

Bungalow Bill
Bungalow Bill
4 years ago
Reply to  TheCaptain
To brag about either Trump or Biden as examples of good leadership humors me. Both are worthless in my book. Someone has been conditioned to red team blue team…
dbannist
dbannist
4 years ago
So, I just checked, with the expanded EIC and the expanded CTC a low income family will get 16k in free cash working a minimum wage job.  They’ll get more in free cash than from working.  AND….that free cash is worth more than 16k because it isn’t taxed at all, not even SS. 
If I earned that 16k I’d have to pay 20% on it making 16k worth nearly 20k.  That is absolute Insanity.
What the government stimulates with free cash it incentivizes and creates MORE of it.  Manchin needs to hold firm.  Let’s just kill the CTC completely and do away with it.  Implement a sales tax instead but not on food.  
Business Man
Business Man
4 years ago
Reply to  dbannist
And, they are now contemplating putting caps on income for eligibility, like with the Covid “stimulus” checks.  So, you can have children and work hard, but if you work too hard or are too successful, you get the right to pay for your children and everyone else’s.
It amazes me that Democrats believe that more disincentives for work will somehow “stimulate” the economy.  I would have thought that the current labor shortage and complete resulting economic disruption would have awakened them to causation effects of their government handouts.
But hey man, go for broke!
Between CTC, Food stamps, housing allowances, unemployment, free childcare, phones — you name it…why would anyone work at a job that pays $50K a year?  My minimum would be $80K before I’d give all that up.  Many will just take the free stuff and work side gigs for cash.  Maybe that’s why Democrats want to see all your business over $600?
Democrats are already looking around in stupid wonderment as to why things aren’t getting done.  Imagine when THIS “Free-a-pa-looza” gets started.  These dim bulbs will be crying about how no one will deliver their food, cut their grass or fix their toilet without paying an arm and a leg.
Bring back the ’70’s baby!
dbannist
dbannist
4 years ago
Reply to  Business Man
My full time job is working and counseling low income people, especially as a housing provider.

I can confidently say that no family in the USA earns less than 50k when government benefits are included, unless they deliberately refuse any and all help that is almost forced on them.

No family earns less than 50k.  That is demonstrably true and easily researched by a few visits to the IRS website and other government run websites.

I’m all for helping the poor, but this is creating massive problems, and resentment from those who have to pay for that.

Business Man
Business Man
4 years ago
Reply to  dbannist
Thank you for the honesty.  I have a number of employees, and they all do very well, in very limited skill set jobs.  I want them to do well.  But it burns me that they have to look around at others who are gaming the system, and then feel bad about “being taken.”  They work hard, and then I have to keep them motivated that working is a good thing, and to disregard people who are dependent on the government.  It’s shameful to low and high-income people.
shamrock
shamrock
4 years ago
You weren’t elected with a mandate for socialism, give it up.  Meanwhile, all the police reform activists who helped them get elected are getting less than nothing.  It’s pathetic. 
Bungalow Bill
Bungalow Bill
4 years ago
Reply to  shamrock
Neither was Trump, but the COVID spending bills Trump demanded passed sure would have made Karl Marx smile. Funny how that works. 

Redistribution of wealth is not only limited to the Democrats these days. 

Rbm
Rbm
4 years ago
Reply to  Bungalow Bill
Everybody has a hand out to the government.  Justifying theirs then complaining about others when it does not benefit then.   
Jmurr
Jmurr
4 years ago
Reply to  Rbm
I don’t. End the State!

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