Joe Biden’s Administration Goes Into a Vertical Dive

MOSCOW, 15 Oct 2021, RUSSTRAT Institute.

The liberal American media described the inauguration of US President Joe Biden as the arrival of adults in the White House and an opportunity to correct the split in American society that had arisen after the reign of Donald Trump. However, after almost 9 months, Joe Biden’s administration not only failed to cope with the existing crises in the United States, but also created several new ones. The dynamics of recent months show that the White House is increasingly losing control of the situation.

The main crisis inherited by the new US president is, of course, the COVID-19 epidemic. Upon taking office, Joe Biden promised the American nation to get rid of the pandemic with the help of vaccination. Already on July 4, 2021, he said that the United States was beginning to return to normal life after the coronavirus pandemic. However, despite the full vaccination of 57% of the population, the September peaks of infections in the United States fell just 9% short of the absolute highs of January 2021 with 303,000 infections per day.

On September 9, US President Joe Biden announced the mandatory vaccination of government employees and employees of private enterprises with staff of over 100 people. This decision made another split in the US public, which was described in detail in one of the previous materials.

In addition, this led to the dismissal of firefighters, police officers and medical workers who did not want to be vaccinated. In the conditions of a catastrophic shortage of personnel to provide ambulances, this threatens paralysis for the entire “911 service”, NBCNews writes.

Southwest Airlines pilots sued the company over the requirements of compulsory vaccination, some openly protested. Due to the difficulties with the staff, the airline delayed more than 3,000 domestic flights in 4 days. Of course, this is not the only company that is having such difficulties.

The next crisis that Joe Biden’s administration had to overcome was related to unemployment, which arose as a result of anti-coronavirus lockdowns. In May 2020, the unemployment rate was 14.7%, and at its peak, the American economy lost approximately 22.4 million jobs.

With varying success, employment began to grow, partly due to the fact that people receiving large unemployment benefits simply did not want to go to work.

The record for employment growth in the United States was July 2021, when Americans took 943,000 new jobs. However, in September, only 194,000 people started a new job, and the US Secretary of Labour was forced to admit that these were not the best indicators, since it was expected that there would be a figure of 500,000. ​

There is a paradoxical situation when there is not enough even unskilled personnel, wage growth does not save the situation. Therefore, fast food chains McDonald’s and Burger King are already ready to hire teenagers from 14 years of age.

In addition, a June study carried out by the US Chamber of Commerce showed that 88% of commercial construction companies reported difficulties finding skilled mid- and high-level workers, and more than a third were forced to abandon orders due to labour shortages. The New York Times expresses serious concern about this, since in such circumstances Joe Biden’s $1.2 trillion infrastructure plan is not very feasible.

The shortage of truck drivers in the United States is already leading to the failure of logistics chains of both industrial goods and products on store shelves. For example, the school districts of Wisconsin are raising the alarm, as they face not only a shortage of food, but also plastic dishes for school lunches.

Business Insider reports that it will not be easy for Americans to get a suitable turkey for Thanksgiving. A shortage of goods in warehouses puts retailers’ Christmas sales at risk, writes Bloomberg. CNN warns that the variety of products on store shelves will definitely decrease this year, customers need to get used to the “new normality”.

The Atlantic describes in more detail the situation with the failure of logistics chains in an article entitled “America Is Running Out of Everything”. “That car part you need? Itll take an extra week, sorry. The book you were looking for? Come back in November. The baby crib you bought? Make it December. Eyeing a new home-improvement job that requires several construction workers? Haha, pray for 2022,” the newspaper writes.

This is due to the fact that the main consumer goods of the United States are received from abroad, and container shipments have increased 10-fold. In addition, there are difficulties with unloading ships in US ports, again due to a shortage of labour.

Considering that Americans are called a “nation on wheels”, it is worth noting a sharp increase in prices for used cars – up to 47%, as the production of new ones has decreased due to a shortage of imported semiconductors. In addition, gasoline prices have increased by almost a dollar over the year, approaching the records of 2014 – $3.28, from where it is not very far from the historical peak of 2008 – $4.10 per gallon.

Some people reasonably blame Joe Biden for this increase in fuel prices, since it was he who imposed restrictions on drilling for shale oil and banned the construction of an oil pipeline from Canada to the United States.

Naturally, all these factors are reflected in inflation. In September 2021, annual inflation equaled the crisis of 2008 and amounted to 5.4%, year-on-year. Since April of this year, Goldman Sachs Bank has been revising its inflation forecast on a monthly basis, regularly increasing it by 0.4%. The right-wing media are trying to introduce the concept of “Bidenflation” to the masses in order to fix Joe Biden’s responsibility for price increases in the minds of the masses.

The IMF has worsened its forecast for the growth rate of US GDP this year, to 6%, while in the July forecast it was said about 7%. Goldman Sachs sees US GDP growth at 5.6% in 2021, although the Federal Reserve office in Atlanta has already recorded a sharp decline in GDP growth in the 3rd quarter of 2021 to 1.3%. Bloomberg writes that according to a predictive study of consumer expectations over the past six months, the US economy is already entering recession.

The border crisis, created directly by the Joe Biden administration, also continues to gain momentum. By June 2021, the US Border Patrol had made 1 million arrests of people illegally crossing the border with Mexico. Then, in July alone, more than 210,000 migrants crossed the US border, which was a 21-year record. However, as it became known, the head of the US Department of Homeland Security is preparing subordinates to greet 400,000 migrants in October this year.

The failures of the White House in foreign policy are already well known to everyone. The disaster during the evacuation from Afghanistan and the undermining of the confidence of the European leadership by the creation of the AUKUS alliance will be remembered for a long time, since when Joe Biden took office, he advertised his extensive experience in the international arena.

As a result, after 9 months after taking office, Joe Biden can boast of nothing. Liberal media fundamentally do not compare the results of his leadership with the rule of Donald Trump, which is clearly noticed by FOX News.

Joe Biden’s approval rating has collapsed. According to a Quinnipiac University poll, it was 38%, even CNN could not ignore this news. The most important thing is that the approval rating among “non-partisan voters” has fallen to 32%, and the results of the 2022 Congressional elections probably depend on their preferences.

According to an October Rasmussen Reports poll, only 33% of American adults believe that a better future awaits America. A survey by Kos-Civiqs, a firm closely associated with the Democratic Party, shows 57% of voters who say that Joe Biden’s administration has done nothing for their personal benefit.

The only thing the White House is counting on now is a $1.2 trillion infrastructure plan and a $3.5 trillion “social infrastructure” plan. However, as was described in the article “The Trillion-dollar split of the Democratic Party“, none of these bills could be adopted in September, due to the banal lack of trust between the progressive wing of the party and its centrists, and Joe Biden does not have enough authority to reconcile both sides.

Initially, the White House denied the existence of a split in the party, but on October 9, Joe Biden addressed the Democratic Party congress with the words: My message is simple: we need to stay together, and bound by the values that we hold as a party” <…> “…we won 2020 as a unified party,” Biden said, and we look to 2022, as we do that, we need to stay unified.”

Some centrist Democrats, who will be re-elected in 2022, are in a hurry to adopt a $1.2 trillion infrastructure plan, since the allocated funds have yet to be mastered by contractors, and Americans should feel the effect of improvements by the autumn of 2022. The progressive wing of the Democratic Party intimidates fellow party members by saying that if their plan for “social infrastructure” is not adopted, it will infuriate the liberal base and reduce the turnout of loyal voters in the upcoming elections.

How the White House will cope with this problem is not yet clear, because if there were real opportunities, they would have done it back in September. In addition, in conjunction with these two bills, the need to increase the debt ceiling is added.

By the good will of the Senate Republicans, Congress increased the US national debt by $480 billion up to December 3. However, instead of gratitude, the head of the Democrats in the Senate, Chuck Schumer, accused the Republicans of creating a crisis situation, so the head of the Republicans, Mitch McConnell, said that he would no longer support an increase in the national debt and the Democrats would have to do it on their own.

Thus, the end of 2021 looks even more difficult for the Joe Biden administration. In addition, according to some experts, after continuous growth, a serious correction in the US stock markets is clearly overdue. From a tactical point of view, it is better for the Democratic Party to implement it this year in order to leave all the negativity in 2021, and by the 2022 elections to boast of the recovery of the economy and stock markets, thanks to new trillion dollar injections.

This scenario can be partly and indirectly confirmed by the situation with US Vice President Kamala Harris. The White House is clearly deliberately distancing her from all crisis situations, the liberal media have long forgotten that she was appointed responsible for resolving the crisis at the border.

The US state delegation to resolve the issue of migrants and drug cartels goes to Mexico without her, and at this time Kamala Harris visits a candy store. She also chairs the commission for improving the working conditions of civil servants and communicates with children about the prospects of NASA, although then it turns out that all these were hired actors.

Such an “ambush tactic” works quite well, Kamala Harris’ approval rating is higher than the president’s. She is clearly being prepared to pick up the “flag of democracy” from the cold hands of Joe Biden’s political corpse.

We should not gloat about the crises in the United States. In addition to economic problems that will surely come to us, the United States has a feature that was voiced by the Secretary of the Security Council of the Russian Federation Nikolay Patrushev – they may try to divert the attention of their society from internal troubles at the expense of external adventures, and Russia is already a familiar opponent in this regard.

Institute for International Political and Economic Strategies – RUSSTRAT

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