Biden's Progressive Agenda is Dead on Arrival

Mish

New York has a projected $8.7 billion deficit in the new fiscal year and is hoping for federal relief. Forget it. The Progressive agenda is dead.

Waiting Game

Following Biden's win, New York’s Budgetary Waiting Game Continues.

The wait-and-see approach has ruled the State Capitol since the spring, when members of the Democratic-controlled state Assembly and Senate enacted a budget that gave Gov. Andrew Cuomo unilateral power to hold back spending if additional federal aid didn’t materialize.

So far it hasn’t, although Mr. Cuomo and legislative leaders said the election of Joe Biden as president would make it more likely that a new federal package would include significant funding for state and local governments.

“We have a huge deficit and we need a lot of answers, and most of those good answers need to come from our federal government. But everything is on the table,” Ms. Stewart-Cousins, a Democrat from Yonkers, said at a press conference.

New York City Mayor Bill de Blasio said Monday that tens of thousands of layoffs are still possible next year. Other cities and counties are developing budgets for 2021 that raise taxes above the state’s 2% cap, a maneuver that requires a vote of 60% of legislators.

Some unions and progressive organizations in New York say state lawmakers should convene immediately and raise taxes, arguing that any federal aid won’t be enough to fix such a large deficit.

Blue Dog Coalition

There are  26 members of the Blue Dog Coalition in the House.

These are Democrats in favor of strong defense and fiscal responsibility. 

House Makeup

117th House

Democrats were widely expected to win seats in the 117th Congress starting January 3. Instead they lost.

The House will be something like 218 Democrats, 210 Republicans, 4 independents and 3 vacant if expectations hold. 

Guess what happens if 16 of 26 Blue Dogs hold firm.

The vote would be 226 to 209. That total would even allow for flips in other places from Republican to Democrat.

Biden's Problems in the Senate 

Democrats need to win both Georgia senate runoffs in January to stand a chance there.

Even then, Democrats will have to hold unanimous (or pick up a Republican Senate vote) for Harris to flip the tie. 

Dead on Arrival

  1. State Bailouts
  2. Tax hikes
  3. Massive climate change proposals 
  4. Single Payer Healthcare

Compromises Coming

It's a certainty that budget deficits will rise on dubious compromises as noted in Here Come the Deficit Hawk Hypocrites.

Although compromises will lead to some gifts to corrupt states like Illinois, New York, and California, the handouts will far, far, short of what the states seek.

In general, the House and Senate makeup will stop the Progressive agenda and mass bailout attempts dead in their tracks.

Trump is out of the way but Biden will not be able to get much of anything done. Many will see both as good things.

Mish

Comments (49)
simb555
simb555

Finally, our economic guru who now gives us politics has a comment I can agree with.

Casual_Observer
Casual_Observer

Biden has no progressive agenda. That was done merely to win elections. Governing is a different matter. Biden and Blue Dog Dems are where most of the country is - socially moderate and fiscally moderate. The Dems should try to suppress the Trump vote in GA but I think sanity prevails for 2 years in America as things get back to normal by summer 2021.

Eddie_T
Eddie_T

I’d like to see healthcare reform......the corporate dominated healthcare system is rotten to the core. The biggest rip-off of all time.

Single payer looks to me like the best option. I have been a healthcare practitioner under a variety of systems, corporate and state run...and when we had single payer Medicaid in Texas during the middle part of my practice career, both doctors and patient benefited from it.....the only losers were insurance companies...and they fixed that by some seriously good lobbying and what amounted to a golden parachute for Rick Perry when he left office.

Now we have austerity for doctors and patients...and Medicaid insurance by companies that have enough profits to advertise daily on major media platforms and to pay huge bonuses to their fat cat CEO’s.

But I never expected to see single payer healthcare from Biden and our current batch of congresspersons...they know which side their bread is buttered on....what ordinary people need or even want doesn’t matter much today. And if single payer were to get much traction, Big Insurance will unleash another big round of fear-mongering from their highly effective merchants of doubt. Just like they did in 2008.

Felix_Mish
Felix_Mish

@Mish All this is good news. But, isn't 226+219 445, not 435? I got lost on the arithmetic.

Mish
Mish

Editor

A word about Racism vs Bigotry.
I am certain Trump is guilty of both. One person in a previous thread defended Trump as follows " In poor taste, bigoted perhaps, but not racist." then went on to bash me multiple times.

Lovely defense. Your honor my client is not a racist, he is just a mean-spirited bigot.

Here are some good articles on the subject.

Are prejudice, bigotry, and racism the same thing?

Let’s Get It Right: Bigotry Is Not Racism

I admit my examples mixed the two. But here is one that is solid.

Trump says congresswomen of color should 'go back' and fix the places they 'originally came from'

Go back where you came from

Trump usually manages to hide his racism so that fellow bigots can defend him.

Vox listed other examples in the link I gave. Here it is again.

“Black guys counting my money! I hate it. "

In congressional testimony, Trump said that some Native American reservations operating casinos shouldn’t be allowed because “they don’t look like Indians to me.”

VOX accurately concludes ...

For many people, none of these incidents, individually, may be damning .

But When you put all these events together, a clear pattern emerges. At the very least, Trump has a history of playing into people’s racism to bolster himself — and that likely says something about him, too.

Mish
Mish

Editor

I had a 1 where there should have been a 0.

Corrected from 219 to 209

The vote would be 226 to "209". That total would even allow for flips in other places from Republican to Democrat.

Six000mileyear
Six000mileyear

Allowing states to file for bankruptcy would be the best for the country. It would hold those cities and states politically accountable. Surprisingly the nation's credit rating could improve since more money could go toward repaying the national debt.

caradoc-again
caradoc-again

If responsibility is allowed to reside with those making the bad decisions then just perhaps some good will come of it in the future. Biden is right about the dark winter but it will be a hell of a lot longer than 3 months.

Sechel
Sechel

Biden will need to rely more on executive action than he had planned earlier but if anyone can horse trade it will be Joe Biden. He's worked in the Senate and has built relationships. Not sure how far that gets him but its an advantage

autrader1
autrader1

I truly hope so, the thought the rest of the country would bail out the massive social programs of NY, Cali and "Ill"-inois is preposterous.

Tengen
Tengen

Biden had no intention of carrying out a progressive agenda anyway, and now an emboldened DNC feels vindicated after the election.

For scathing progressive critiques of Biden, just listen to people like Jimmy Dore, Kim Iversen, Matt Taibbi, Katie Halper, Krystal Ball, Glenn Greenwald, and others.

Knight
Knight

Another Fed financing program coming...this time for state debt,

JonSellers
JonSellers

Of course Biden isn't going to do those things. But the Fox story line is that Kamala Harris is an arch Maoist, and old Joe is going to pass on in his first year. Than Kamala is going to assume the presidency and implement communism on these freedom-loving United States. So, I guess the big question is: can the Senate and House somehow thwart the evil genius plan of Kamala and her Venezuelan handlers? I don't see how, she will be the President. And Fox's constitutional scholars probably know better than I do.

Realist
Realist

Healthcare costs over 18% of US GDP vs 9-11% in most other developed countries. You would think that there must be a few percentage points of GDP in savings somewhere to be found.


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