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U.S. risks losing its 'edge' without big infrastructure spending, Biden says

Published 10/05/2021, 06:06 AM
Updated 10/05/2021, 07:47 PM
© Reuters. U.S. President Joe Biden delivers remarks on the U.S. debt ceiling from the State Dining Room at the White House in Washington, U.S. October 4, 2021.  REUTERS/Jonathan Ernst

By Jarrett Renshaw and Trevor Hunnicutt

HOWELL, Mich. (Reuters) -President Joe Biden warned on Tuesday that failure to pass his huge social and infrastructure spending package could contribute to America's decline, while lawmakers in his Democratic Party wrangled over its price tag.

Squabbling Democratic moderates and progressives dealt Biden a setback last week when they failed to move ahead with his proposed $1 trillion infrastructure bill or a planned $3.5 trillion social spending bill, which is now facing cuts.

"These bills are not about left versus right or moderate versus progressive," Biden said in Michigan, arguing the bills would make the United States more competitive and restore its role as a world leader.

"We're at risk of losing our edge as a nation ... To oppose these investments is to be complicit in America's decline," he said.

Democrats fear that if they fail to pass the infrastructure bill they could be punished by angry voters in November 2022 congressional elections. Rebuilding U.S. infrastructure was one of Biden's main election promises.

The larger "Build Back Better" bill Biden proposed includes childcare, housing and healthcare benefits, free community college tuition and clean energy subsidies, all of which the White House said would not increase the country's debt because they would be paid for by taxes on the wealthy and corporations.

Biden said the investments were urgent, citing such adversaries as China, which he said had spent around three times as much as the United States on infrastructure as a share of its economy.

"Our competitors aren't hanging around waiting to see what we're going to do," he said.

Before leaving Washington, Biden met virtually with moderate Democratic members of the U.S. House of Representatives about the infrastructure bill and his Build Back Better agenda.

The White House described the meeting as productive, noting in a statement that the group "renewed their commitment to getting each bill passed so that we can make investing in families the heart of our economic growth strategy."

Biden held a similar meeting with progressives on Monday.

Biden allies worry that his planned programs, many of which opinion polls show are popular with a majority of Americans, have been lost in the legislative wrangling.

STATE FLIPPED TO BIDEN

Michigan is an election battleground state that Biden flipped from Republican to Democratic in 2020. The White House said aging infrastructure has slowed commutes for Michigan residents and that many lack access to broadband internet and childcare.

Biden was in Howell, a city of about 9,500 located roughly 55 miles (90 km) west of Detroit, visiting an International Union of Operating Engineers training facility. The town sits in the highly competitive 8th congressional district. Voters there picked Trump in 2020 but also returned Democratic Representative Elissa Slotkin to Congress.

Slotkin supports the $1 trillion roads-and-bridges bill and has advocated for elements of the broader social-spending legislation but said she would need to review the plan in full.

"We are not going to take this bill and pass on more debt to our kids, and we are not going to pay for this bill on the back of working families," Slotkin said. She said she discussed the issue when she rode with Biden from the airport.

Progressive (NYSE:PGR) House Democrats have said they will not vote for the infrastructure bill until they get backing for Biden's social spending bill, whose price tag has caused some moderates to balk. The dispute forced Democratic leaders last week to postpone a vote scheduled on the smaller infrastructure measure, which has already secured bipartisan Senate support.

Biden has said the size of the social spending bill will have to come down to win over two Senate Democratic moderates, Kyrsten Sinema and Joe Manchin. Their support is necessary because all Senate Republicans oppose the larger bill and every Democratic vote is needed for passage.

© Reuters. U.S. President Joe Biden delivers remarks on infrastructure investments at the International Union of Operating Engineers Local 324 training facility in Howell, Michigan, U.S. October 5, 2021. REUTERS/Jonathan Ernst

In his virtual meeting with progressives on Monday, Biden put forward a range of $1.9 trillion to $2.2 trillion for the social spending reconciliation package, a House Democratic aide said.

The aide said the chair of the 95-member Congressional Progressive Caucus, Representative Pramila Jayapal, suggested that range would be too low to fit all of the programs that the president previously told Congress were priorities.

Latest comments

"U.S. risks losing its 'edge' without big infrastructure spending, Biden says". roflmao. You know what they say? 2 person can do the exact same thing and get completely opposite results. Why? 1. The intention 2. The circumstances. Both of these will ensure US go kaput. can't wait to see the cowboy *****the dust. And when future historians were to pinpoint the time when the US turns a "hard left"... Ah... Old Man Cap's time. Sorry...Senile Old Man Cap. ROFLMAO
If we want to build infrastructures, we need to hire chinese. I don't believe we know how to build mega infrastructure that comes in time and budget. Where I live, thry have been trying to build a highway and it is in the work after 10 years...
dump *****president.
They want to turn us like Venezuela. What happens when all the companies leave?
they won't leave. too much money to be made here.
r u willing to bet your head on it?
He’s is right about that , but can you tell me how do you plan to finance it? Maybe get rid of the 3.5T Socialist spending ?
he is going to steal private pensions obviously. That guy is senile
Lmao what a lie according to the paperwork that sends money to other countries
The edge is leaving as much money in the hands of the people to create and produce. Government produces nothing and creates problems.
The only edge the US has anymore is the US dollars status as a reserve currency, which they are eroding with their irresponsible polices and spending.  Any actual economist can see this, whether they admit it or not.
Maybe hunter could have an art sale to fund yohr spending spree… but he only likes to spend other peoples money
All of our media has become left wing propaganda.
Except the most watched cable “news” channel, Fox. Or doesn’t that one count? Wall Street Journal? 2.8 million-copy circulation, nevermind the dozens of Pulitzer prizes.
"He wants to go out there and talk".. problem is he can't talk.. can't form complete coherent sentences. He's a complete vegetable, and the entire world knows it.. except hypocrite dems.. to them he's God.
What a biased article !
Hopefully the 3.5 trillion Marxist "infrastructure" bill eventually goes away.
Im sure the politicians can read joe and form thoughts unlike you. Thanks for patronizing though. Thatll help your cause for sure. Lol
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