Biden’s Economic ‘Unfinished Business’ Takes Center Stage In Election

KEY TAKEAWAYS

• As President Joe Biden’s Administration enters its final months, White House economic advisors say he has yet to address two crucial policies for household finances.
• The chair of the White House Council of Economic Advisors said housing and childcare expenses are two of the most pressing issues for households.
• Kamala Harris and Donald Trump are proposing policies to address soaring childcare and housing costs.

President Joe Biden’s administration has left at least two major economic problems festering, and both Kamala Harris and Donald Trump are touting plans to address them.

Biden and White House officials are quick to point out the bright spots of the economy under his presidency—restoring the jobs lost during the pandemicand then some; inflation falling back to near pre-pandemic levels, and a reduction in drug prices for Medicare recipients. But Biden was never able to get major legislation passed addressing two of the biggest financial burdens on American families: soaring costs for housing and child care.

In an interview last month with Investopedia, Jared Bernstein, chair of the White House Council of Economic Advisors, highlighted those issues as the economic problems most in need of government intervention.

“I would say the 15-year build-up and the shortage of affordable housing is one of the biggest pieces of unfinished business we face,” Bernstein said. “And of course, there are too many people that spend too large of a share of their income on child care.”

Home prices have risen more than 50% since the pandemic began, putting home ownership out of reach for many people and creating a ripple effect of economic problems, including preventing people from moving to get better jobs.

Child care is an even more daunting issue for families who must pay for it. Sending two children to daycare was typically more expensive than rent across the country last year, according to an analysis this spring by the advocacy group Child Care Aware.1

Both major presidential candidates have proposed policies addressing those problems.