Jonathan Bydlak

It’s almost spring, and you know what that means: buds popping on the trees, birds chirping as the days grow longer, and the president introducing a budget that will be quickly forgotten. And so it's happened. But there have been a few interesting twists that could make this budget season more interesting than most. President Biden wrote an op-ed for the Wednesday New York Times presenting his plan to “extend Medicare for another generation.” The piece was largely predictable: calls to raise taxes on the wealthy as a way “to increase the program’s solvency by twenty-five years.” While some fiscal conservatives welcomed the president’s willingness to raise the issue of Medicare solvency, his ideas are largely dead on arrival for Republicans.

Lame-duck sessions of Congress are rarely uneventful. Whether it’s cramming through spending at the last minute or cramming through even more spending at the last minute, our legislature can always be counted on to rubber-stamp bills that lacked political support before Mariah Carey returned to the airwaves. Leading the charge for the opposition this time around is the self-declared speaker of the House, Kevin McCarthy. A Bloomberg headline recently proclaimed that “McCarthy Draws Line on Spending,” and trumpets seemingly blared out from the heavens heralding that Republicans had — finally — rediscovered their fiscally conservative bona fides. But not so fast: this is a script we’ve seen before.

Since the latest growth numbers have come out, much ink has been spilled over the question of whether the economy is in a recession. Perhaps unsurprisingly, the Biden administration tried to get out ahead of Thursday’s release with a press statement noting that back-to-back quarters of negative growth doesn't necessarily mean a recession. Also predictably, Republicans strongly rebuked the idea, saying, “You can’t change reality by arguing over definitions.” Both sides of the debate will continue to play out, and both sides will continue to miss the point. Ultimately, it doesn’t matter very much whether growth goes up or down by 0.2 percent. What matters is the general trajectory of the economy. And on that front, the Biden track record is mixed at best.

The Covid-19 pandemic has affected every part of society, and the country’s economic wellbeing has been no exception. The time since March 2020 has provided a sort of natural experiment as to how various untested policy ideas play out in real life. Initially, most politicians on both sides of the ideological spectrum agreed on the need for a robust federal response to the virus. These actions took many forms: universal relief checks, enhanced unemployment benefits, and historic funding of vaccine research and distribution — just to name a few. For well over a year, the federal government was a source of seemingly unlimited spending. Although many of those policies have since fallen by the wayside or are at least becoming less relevant, some remain part of a fierce public discussion.

Much has been written about the expansiveness of the Biden administration’s signature priority: the Build Back Better Act (BBB). The legislation is projected by the Congressional Budget Office (CBO) to spend more than $1.6 trillion in its attempts to address countless Democratic priorities ranging from climate change to the expansion of Medicaid. One aspect of the bill, however, has attracted far less fanfare than it should have: its impact on the cost of prescription drugs. Provisions in the bill would, among other things, impose rebates on drug manufacturers if prices rise faster than inflation. It’s an idea that sounds great in the current moment of creeping inflation, but is ultimately little more than a market distortion likely to produce an array of adverse consequences.

If you think Washington couldn't get any more dysfunctional, think again. On Monday night, Senate Republicans blocked a Democratic attempt to avoid a government shutdown. This raises the temperature in a Congress that’s already had, shall we say, a pretty high fever since being sworn in on January 3. Depending on who you ask, the Republicans’ latest action is either a brave attempt at stopping Biden’s massive spending package — Mitch McConnell’s stated perspective — or a foolish gamble bringing us one step closer to a debt default, as Democrats claim. In a sense, both sides are right. But Washington also needs to remember that refusing to raise the debt limit is akin to cutting up the credit card after maxing it out. It doesn’t solve the actual problem.

The Biden administration’s latest $3.5 trillion spending proposal continues to attract attention. With a hodgepodge of Democratic priorities ranging from climate change to Medicare expansion, the bill is the more partisan companion of the administration’s $1 trillion infrastructure plan. Of course, another blockbuster story has been distracting attention from these packages — the difficult withdrawal from Afghanistan. Many in Congress continue to be critical of the administration’s handling of the pullout, and some are determined to use the crisis to their political advantage.