What's the problem with Bidenomics

The power players, latest policy developments, and intriguing whispers percolating inside the West Wing.

Sep 21, 2023 View in browser   By Myah Ward, Lauren Egan and Lawrence Ukenye Welcome to POLITICO’s West Wing Playbook, your guide to the people and power centers in the Biden administration. With help from producer Ben Johansen Send tips | Subscribe here | Email Eli | Email Lauren President JOE BIDEN sees in poll after poll that his Bidenomics message isn’t clicking. A new paper from the Progressive Policy Institute, first shared with West Wing Playbook, offers some clues as to why. “‘Bidenomics’ as Politics and Policy: Credible Start, But Gaps to Fill” says one reason the White House pitch is falling short is because it’s centered on a sector that captures less than 1 in 10 U.S. workers. The paper’s author, ED GRESSER, said the administration’s effort to sell positive economic metrics to the American people gets a lot right in zeroing in on working-class Americans. But by focusing its message primarily on manufacturing and construction workers, it’s missing the much larger swath of non-industrial workers in retail, restaurants, hair salons, health care and a slew of other trades. As of mid-2023, manufacturing jobs make up 8.3 percent of the workforce, according to Bureau of Labor Statistics data. “When administration officials travel, they often show up at factories. They don’t particularly show up at restaurants or health centers,” said Gresser, a former United States Trade Representative official. “When they’re talking about working life, they are talking about factories and construction sites much more than they are talking about retail life or restaurant work.” Gresser isn’t the only one thinking in this vein: Washington Post columnist CATHERINE RAMPELL wrote an article last week titled, “The real problem with ‘Bidenomics.’” In a post on X, she wrote: “Maybe it’s not super strategic to center your economic message around an industry almost no Americans work in anymore, has little relevance to their lives, and … isn’t doing all that great besides?” The White House, naturally, didn’t agree. One official argued that the Bidenomics messaging extended well beyond manufacturing, as evidenced by several other papers and speeches on the president’s economic policy. The official also highlighted research from the Economic Policy Institute that found manufacturing industries have among the strongest linkages to jobs in other sectors, meaning a loss in manufacturing jobs affects jobs in other sectors. “A strong labor market with empowered workers boosts wages for everyone, and President Biden’s actions to strengthen our supply chains, lower prescription drug and health care costs, and eliminate junk fees and increase competition will save hardworking families money. That’s why those policies are supported by 4 in 5 Americans,” said JESSE LEE, senior communications adviser to the National Economic Council. Shadowing the debate is a larger legislative reality: Biden's major attempt to address economic sectors beyond manufacturing failed when his Build Back Better initiative was largely scaled down. MICHAEL R. STRAIN, director of economic policy studies at the American Enterprise Institute, said there is some value in the Progressive Policy Institute’s argument. But he argued it wasn’t hard to see why, beyond the Beltway, Bidenomics wasn’t resonating. “Average inflation adjusted earnings fell in 2022, and that’s because of inflation,” he said. “So no surprise to me at all that people aren’t feeling good, their wages are going down.” At the end of the day, Strain added, no matter how many policy proposals or how much messaging emanates from the White House, there’s not a specific policy lever the president can pull at this point to change Americans’ feelings about the economy. MESSAGE US — Are you BENJAMIN DELLA ROCCA, senior policy adviser at the National Security Council? We want to hear from you. And we’ll keep you anonymous! Email us at westwingtips@politico.com. Did someone forward this email to you? Subscribe here!    GO INSIDE THE CAPITOL DOME: From the outset, POLITICO has been your eyes and ears on Capitol Hill, providing the most thorough Congress coverage — from political characters and emerging leaders to leadership squabbles and policy nuggets during committee markups and hearings. We're stepping up our game to ensure you’re fully informed on every key detail inside the Capitol Dome, all day, every day. Start your day with Playbook AM, refuel at midday with our Playbook PM halftime report and enrich your evening discussions with Huddle. Plus, stay updated with real-time buzz all day through our brand new Inside Congress Live feature. Learn more and subscribe here.     POTUS PUZZLER Thanks to the White House Historical Association for this question! After the United States Olympic ice hockey team won the nation’s first gold medal in the sport since 1960, which president sent Air Force military planes to pick up the team from the Olympic site and bring them to the White House?   (Answer at bottom.) The Oval A JAM-PACKED VISIT: After visiting Capitol Hill and then the Pentagon, Ukrainian President VOLODYMYR ZELENSKYY met Thursday with Biden at the White House for their sixth in-person meeting. It comes just days after both men addressed the U.N. General Assembly to rally the world against Russian aggression. Biden called Ukraine a U.S. “partner” and said "we're supporting a just and lasting peace, one that respects Ukraine's sovereignty and territorial integrity." The president has plans to provide Kyiv with additional air-defense capabilities to “harden its defenses ahead of what is likely to be a tough winter filled with renewed Russian on Ukrainian critical infrastructure,” national security adviser JAKE SULLIVAN told reporters at Thursday’s White House press briefing. Sullivan also sounded a note of optimism that Congress would continue to support Ukraine despite the dysfunction among House Republicans. NOT WHAT THEY WERE LOOKING FOR: House Oversight Chair JAMES COMER on Thursday didn’t find evidence that Biden benefited from his son’s business dealings after combing through a batch of emails from Biden's time as VP. Instead, the emails offered a glimpse into Biden’s routine. They recounted conversations over lunches he had with his granddaughters — the daughters of his son HUNTER BIDEN — as well as an exchange with Biden’s then-national security adviser ANTONY BLINKEN who multiple Georgian women felt he was “sexy.” Our HEIDI PRZYBYLA obtained several of the unredacted emails. WHAT THE WHITE HOUSE WANTS YOU TO READ: This piece by the Washington Post’s SABRINA RODRIGUEZ about how Vice President KAMALA HARRIS is connecting with young Americans during her “Fight For our Freedoms'' college tour on issues they value most, like countering gun violence. The vice president was well-received at her recent visits, particularly among Black and Hispanic students who could be crucial in shoring up Biden’s path to reelection. The press office shared the piece with reporters in an “ICYMI” email. WHAT THE WHITE HOUSE DOESN’T WANT YOU TO READ: This piece by AP’s JONATHAN J. COOPER about how Democrats are worried about a third party ticket in Arizona playing spoiler for Biden. More than 15,000 people registered to join No Labels in an effort to form a bipartisan “unity ticket” in next year’s election. The group has successfully secured ballot access in 11 states, with the goal of reaching all 50 states by November 2024. Biden won Arizona three years ago with a razor-thin margin — and substantial support from Republicans. MAKING THE CASE FOR MAUREEN DOWD: In a podcast conversation with KARA SWISHER, former press secretary JEN PSAKI said that despite the White House’s calm public attitude about Biden’s age, it’s an issue that senior staff pays close attention to. “It’s not that [Biden’s age] just popped up as an issue in the last six months. Even when I was there, which was 15 or 16 months ago, that was the issue,” she said. Psaki said that unpredictable things will register with voters as a strike against the 80-year-old president, like when a staffer dressed as the Easter Bunny prevented Biden from answering reporters’ questions during the 2022 White House Easter Egg Roll. “That popped as an age issue. It wasn’t — but the point is that [the White House is] fully tracking it,” she said. THE BUREAUCRATS BIDEN FILLS TWO FOREIGN POLICY POSTS: Biden has tapped MELISSA G. DALTON to serve undersecretary of the Air Force at the Department of Defense and ANDREW PITT to be assistant administrator for the Middle East at USAID, the White House announced Thursday. Dalton began working in the administration in January 2021 and currently serves as the Pentagon’s assistant secretary of defense for homeland defense and hemispheric affairs. Pitt currently works as senior deputy assistant administrator for the Middle East region at USAID. Agenda Setting YOU'VE GOT TO CONVINCE THEM, JOE: Minority Leader MITCH MCCONNELL and senior House Republicans want the Biden administration to step up their efforts in selling lawmakers and the American public on the need to provide additional military support for Ukraine, our JENNIFER HABERKORN and ADAM CANCRYN report. Biden has leaned on Republicans to support additional funding, but Democrats fear he could lose support as political pressure forces them to change their stances on providing aid. “[Biden] always gets to the right decision, just three to six months after the fact, and that’s the inherent problem,” House Armed Services Chair MIKE ROGERS (R-Ala.) said. A REQUEST FINALLY GRANTED: The Biden administration on Wednesday made 500,000 Venezuelan migrants eligible for work permits, our EMILY NGO reports. New York City Mayor ERIC ADAMS had requested the move for weeks as his city continues to grapple with a migrant influx that risks straining public services. New York Gov. KATHY HOCHUL, who met Biden at a U.N. reception on Tuesday, said that she was “grateful the federal government has acted so speedily to grant one of our top priorities.” The president’s move comes ahead of his appearance on Thursday night at the Congressional Hispanic Caucus Institute Gala, where many immigration advocates and lawmakers will be in attendance. DID YOU REMEMBAH? TONIGHT’S THE 21ST NIGHT OF SEPTEMBAH: Thursday is a very special day for all self-proclaimed disco fans (or anyone who genuinely loves good music). It marks what Earth, Wind and Fire lead singer MAURICE WHITE famously referred to as “the 21st night of September,” in the award-winning song that bears the month’s name. Sam is calling on Biden to make the annual date a national holiday. Republican DAVE MCCORMICK, who is expected to announce his bid to challenge Sen. BOB CASEY (D-Pa.) for Pennsylvania’s Senate seat, also posted the song on X. West Wing Playbook is urging readers to queue up the song NOW before it's too late and it’s suddenly the 22nd night of September. What We're Reading Meet the Law Geeks Exposing Google’s Secretive Antitrust Trial (Wired’s Paresh Dave) So Much for Biden the Bridge President (The Atlantic’s Mark Leibovich) Taylor Swift snags 35,000 new registered voters (Axios’ Stef W. Kight) Airlines Are Just Banks Now (Ganesh Sitaraman for The Atlantic) The Oppo Book KAMALA HARRIS and second gentleman DOUG EMHOFF previously lived in the same D.C. apartment building as former Trump national security adviser ROBERT O’BRIEN, who Emhoff knew from their days as Los Angeles lawyers, three people familiar with the matter told DANIEL LIPPMAN. The trio lived in the city’s West End neighborhood, and O’Brien and Emhoff would sometimes run into each other in the building’s gym and hallways, always making friendly conversation, according to one of those people. But the two were on opposite sides of an epic battle over whether Taco Bell misappropriated a chihuahua symbol used in ad campaigns: Emhoff helped represent the fast food chain’s former ad agency while O’Brien was a lawyer repping Taco Bell. POTUS PUZZLER ANSWER In 1980, President JIMMY CARTER invited the United States Olympic ice hockey team to the White House after the team secured the nation’s first gold medal in the sport since 1960. After being picked up in Lake Placid, N.Y., by Air Force planes, including Air Force One, the athletes attended a luncheon at the White House in their honor, according to the White House Historical Association. A CALL OUT! Do you think you have a harder trivia question? Send us your best one about the presidents, with a citation or sourcing, and we may feature it! Edited by Eun Kyung Kim and Sam Stein.   HAPPENING 9/28 — INSIDE THE CANCER MOONSHOT: Join POLITICO on Thursday, Sept. 28 for an in-depth discussion on the future of cancer treatment and innovation. Hear from experts including scientists, government officials and industry leaders as we explore the critical roles played by private industry, nonprofits, the National Cancer Institute and the new Advanced Research Projects Agency for Health in achieving the Biden administration's goal of cutting the cancer death rate in half over the next 25 years. Don't miss this opportunity to dive into the progress of cancer treatments and learn about the challenges patients encounter in accessing care. REGISTER HERE.       Follow us on Twitter Eli Stokols @EliStokols Lauren Egan @Lauren_V_Egan Lawrence Ukenye @Lawrence_Ukenye   Follow us

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