Biden was tasked with steering the White House’s overtures to Congress in dealing with the financial meltdown. For months, Biden focused his efforts on his former GOP colleagues, in the end to get the backing of just three Republicans.
The process of securing the $787 billion package — aid broadly credited for helping boost an economy in free fall — left a bad taste for the Obama-Biden White House. The package drew withering criticism from most on the right for being too big. Many in the Democratic Party have come to believe it was too small, a missed opportunity to not just help the economy but reinvent it.
“The lesson from the Great Recession is that without sustained economic relief, the recovery will take longer, unemployed workers will experience more pain, and already historic levels of inequality will worsen,” said Chris Lu, a deputy labor secretary under Obama.
Democrats also say they will not be burned again by expectations for bipartisanship that proved to be naive during the Obama years.
Austan Goolsbee, a former chair of the Council of Economic Advisers, said one of the other lessons of those negotiations was that “Republicans are going to argue against Joe Biden if he does anything at all.”
“Everyone believed at that time that if the economy struggled, we could come back” and pass additional aid, Goolsbee said. But Republicans were staunchly opposed to Obama’s agenda throughout his eight years in office. The prospect that they will again refuse to work with Biden should make him go big while he still can, in Goolsbee’s view.
“If there is a hyperpartisan gridlock environment in Washington, that ought to make you doubly careful about trimming your own wings out of the gate,” he said.
Facing economic storm clouds, Biden has told aides he will not settle for a too-small bill in the name of token bipartisanship.
He has made clear he values bipartisan support, has courted Republicans and has signaled a willingness to trim the overall price tag somewhat. He would prefer a traditional deal that crosses the aisle.
But he insists he will not budge on delivering $1,400 stimulus checks to individuals, believing that reducing the amount would be a broken promise and could undermine his credibility with the public early in his term.
Moreover, Democrats have pointed to the stimulus checks as a winning issue in the pair of Georgia runoff races in January that gave their party control of the Senate. And many progressives, already wary of Biden’s moderate instincts, have made clear they do not want the president to compromise on liberal promises to woo Republicans likely to consistently oppose him.
Moderate Democrats in the Senate have also shown broad support for the bill and this past week all voted in favor of using a legislative maneuver that would allow the bill to pass with only Democratic votes. It was an implicit endorsement of a go-big strategy that could give Biden cover in pursuing a bill without Republican votes.
Sen. Angus King, a Maine independent who caucuses with Democrats, said that while “I generally tend to be concerned about budgets and budget deficits,” the spending in the COVID-19 relief package “is justified and important.”
He added that without a good-faith effort from Republicans on the bill, negotiation isn’t worth it.
“I just don’t think what they proposed was real, realistic or what was necessary to meet the situation that we’re in,” he said of the GOP counteroffer. “You know, you can’t clap with one hand. Bipartisanship requires serious discussion and an attempt to meet in the middle and so far I haven’t seen that.”