Bidenomics In the States
On Monday, Vice President Harris and Treasury Secretary Yellen held a press call to announce the Department of Treasury's new report on the positive impact of unions on the economy. The report finds that unions contribute to a more robust and resilient economy by addressing longstanding challenges faced by the middle class.
On Tuesday, the Centers for Medicare and Medicaid Services released the first 10 drugs selected for Medicare Price Negotiation – a critical provision under the Inflation Reduction Act that will finally allow Medicare to negotiate lower prescription drug costs for seniors, people with disabilities, and other beneficiaries. President Biden held an event on this news and was joined by Vice President Harris. Also on Tuesday, the Department of Treasury released detailed guidance on wage and apprenticeship requirements for projects using clean energy tax credits under the Inflation Reduction Act's prevailing wage and registered apprenticeship.
On Wednesday, First Lady Jill Biden gave remarks at Chicago Federation of Labor in Chicago to highlight the Biden Administration's support of organized labor. Also on Wednesday, the Department of Labor announced a notice of proposed rulemaking that would restore and extend overtime protections to 3.6 million salaried workers. The proposed rule would guarantee overtime pay for most salaried workers earning less than $1,059 per week, about $55,000 per year.
On Thursday, Department of Energy Secretary Granholm announced $15 billion in funding for electric vehicle and electric vehicle component, including $2 billion for grants to convert auto manufacturing facilities to produce EVs or EV components, up to $10 billion in loans to finance plant conversions, and a notice of intent for $3 billion in battery supply chain funding. All funding strongly incentivizes collective bargaining, high wages, and retention of existing auto jobs. Also on Thursday, the PCE inflation report showed our economy remains strong and continued progress on inflation.
On Friday, the President delivered remarks on the August jobs report, which showed that our economy created nearly 190,000 jobs last month. Since President Biden took office, we've added 13.5 million jobs – including around 800,000 manufacturing jobs.
Bidenomics In the News
Washington Post: Overtime pay would cover millions more workers under proposed Biden rule
The proposed rule would guarantee overtime pay for most non-hourly workers earning less than $55,000 a year, up from the current threshold of $35,568 a year.
[Lauren Gurley, 8/30/23]
The Biden administration unveiled a new rule Wednesday to extend overtime pay to an additional 3.6 million salaried white-collar workers in the United States. While most hourly workers are entitled to overtime pay, non-hourly workers in executive, administrative and professional roles — including some supervisors — are exempt from overtime pay unless they make less than $35,568 a year. The Labor Department's proposed rule would guarantee overtime pay for far more non-hourly workers, raising the threshold to benefit such workers earning less than $55,000 a year. […] The Biden administration is touting its long-awaited new rule as part of its "Bidenomics" plan to rebuild the middle class. As part of this agenda, the administration has been taken action to raise wages for workers on federal projects and revive manufacturing jobs by investing in green energy projects and semiconductor manufacturing. Sharon Block, a labor law professor at Harvard Law School, who led the Obama administration's efforts to increase overtime benefits, said in a statement that the Biden administration's proposed rule demonstrates "the fact that elections have consequences."
CNBC: Kamala Harris touts strength of labor unions to build the middle class
[Chelsey Cox, 9/28/23]
"Union workers make our middle class and our entire economy more strong," Vice President Kamala Harris said Monday on a call outlining the administration's efforts to support unions. "President Biden and I are building an economy where every person, not just the wealthy, (is) well-connected, has the opportunity to thrive," she added. […] The report, issued by Treasury's Office of Economic Policy, also showed that unionization reduces wage gaps by race and gender and improves benefits and procedures like retirement plans, grievance policies and steady work schedules. […]
Reuters: Harris, Yellen tout unions' economic benefits with new Treasury report
[9/28/23]
U.S. Vice President Kamala Harris and Treasury Secretary Janet Yellen held a rare joint press call on Monday to tout the benefits of union membership, releasing a new Treasury report that shows wages for union members are 15% higher than non-union workers. […] THE TAKE: The White House has been pushing to support unions and expanded union membership as part of U.S. President Joe Biden's plan to overhaul the U.S. economy, fight inequality and reallocate more corporate profits to the middle class. […]
BY THE NUMBERS: The report shows unions boost wages by 10 to 15 percent in industries where new unions form, add to fringe benefits, retirement plans, predictable scheduling and workplace grievance policies. […] KEY QUOTE: "Union workers earn 15 percent more in pay than non-union workers in the same occupation. Union workers also receive retirement benefits, paid sick leave, life insurance and discounts on childcare at a much higher rate," Harris said.
Spectrum News: 'A new deal for patients': Biden admin. unveils 10 drugs for Medicare price negotiations
[Maddie Gannon, David Mendez, and Reuben Jones, 8/29/23]
In a first-of-its-kind move for the federal government, on Tuesday the Biden administration announced a common drug to treat diabetes and the blood thinner Eliquis are among the first 10 drugs subject to Medicare price negotiations in a bid to bring down prescription drug costs for seniors. "I promise you, I'm gonna have your back, and I'll never stop fighting for you on this issue — and nor will Kamala," President Joe Biden, also referring to Vice President Kamala Harris, said in remarks Tuesday in the East Room of the White House.
WXIA (NBC Atlanta, GA): 'This is a wonderful thing for us' | Patients welcome Medicare price negotiations for expensive drugs
[Tresia Bowles, 8/29/23]
The Biden Administration revealed the first 10 prescription drugs Medicare will negotiate under the Inflation Reduction Act meaning patients could soon pay less to get life-saving care. The batch includes blood thinners and medications to treat diabetes, cancer, and more. […] Diane Loupe, 66, of Decatur, takes Xarelto. […]"I'm sure there are people out there who are having to make this choice between eating and paying for a drug," Loupe said. However, White House Press Secretary Karine Jean-Pierre said that's about to change. "These 10 drugs, in last year, in 2022 cost Americans $3.4 billion, about $6,000 out-of-pocket expenses - just for one drug," Jean-Pierre said. Jean-Pierre said Medicare will be able to negotiate prices with drug companies for the first time ever. Jean-Pierre said more medications would be added later.
Pittsburgh Post-Gazette: New drug price negotiations could help 450K Pennsylvanians, White House says
[Jonathan D. Salant, 8/30/23]
Biden administration officials said the efforts to lower prices will reduce out-of-pocket costs that average almost $5,700 a year for those who take Imbruvica, which is used to treat blood cancers. "This is your mother with arthritis, your father with diabetes and your great aunt with Crohn's disease," Chiquita Brooks-LaSure, administrator of the Centers for Medicare and Medicaid Services, told reporters on a conference call.
WDAF (Fox Kansas City, MO): President Biden has beaten Big Pharma with drug price negotiations: White House
[Jonathan Ketz, 8/29/23]
White House Press Secretary Karine Jean-Pierre spoke to FOX4's John Holt Tuesday after Biden announced the 10 drugs pharmaceutical companies must negotiate their prices on for people on Medicare. The goal, cut costs for seniors and taxpayers.
Arizona Public Broadcasting: White House plan to negotiate drug prices could affect 165,000 Arizonans
[Alexandria Cullen, 8/29/23]
The Biden administration targeted 10 prescription drugs Tuesday as part of the first-ever Medicare price negotiation, a move that it said could benefit 9 million beneficiaries – including 165,000 in Arizona. The medications, which are used to treat heart failure, blood clots, diabetes, arthritis, Crohn's disease and more, account for the highest spending for drugs in Medicare Part D, and cost Medicare enrollees an estimated $3.4 billion in out-of-pocket expenses last year. The move is part of the Inflation Reduction Act, which requires the government to cap out-of-pocket prescription expenses for Medicare enrollees at $2,000 by 2025. The act also requires the Department of Health and Human Services to negotiate prices for drugs with pharmaceutical companies, a move the Congressional Budget Office estimates could save $160 billion for taxpayers.
Cedar Rapids Gazette: Negotiated Medicare drug costs could aid 36K Iowans
[Erin Murphy, 8/31/23]
Roughly 36,000 Iowans on Medicare pay an average of $650 each year to take the blood thinner Eliquis, according to federal data, but that copay could fall in future years under a new federal law being celebrated by President Joe Biden's administration and Iowa Democrats. […] The Inflation Reduction Act passed Congress on Democrats' support; all six Iowa Republicans voted against the legislation.
Tribune Chronicle: Biden cites Youngstown economic growth
[8/31/23]
New data from the U.S. Bureau of Labor Statistics shows metro unemployment fell to a record low in Youngstown, and President Joe Biden mentioned the city Wednesday. "Under Bidenomics, America is back to work and leading the world again, and with the Youngstown area at its lowest unemployment rate on record, it is helping drive America's strong economic growth," Biden stated. "With my investments to help rebuild Youngstown infrastructure, and private sector investments pouring in across the state, Youngstown can help lead America's economy for the next generation, too." The Bureau of Labor Statistics shows the Youngstown-Warren-Boardman metropolitan area's unemployment rate for July was 4.1%, compared to 5.2% in July 2022. […] That's a far cry from October 2018 when Youngstown had the highest unemployment in Ohio among cities with a population of 50,000 or more — at 7.4%.
Pittsburgh Post-Gazette: Pittsburgh-area jobless rate hits new low in July
[Kris B. Mamula, 8/29/23]
The seasonally adjusted unemployment rate for the seven-county Pittsburgh metro area decreased two-tenths of a percentage point over the month to a record low of 3.7%, according to the state Department of Labor and Industry. That's a record low going back to 1976 and the region's jobless rate was the third consecutive record low. Pennsylvania's unemployment rate was 3.5%, also a record low since 1976, and the national rate was 3.5%. The Pittsburgh metro rate was .8 percentage points under its July 2022 level of 4.5%.
Bidenomics on the Airwaves
Karine Jean-Pierre on KTTV (Fox Los Angeles, CA) - 8/29
JEAN-PIERRE: A year ago, the President and Democrats only in Congress passed the Inflation Reduction Act […] part of the provision is to allow Medicare to be able to negotiate with pharmaceutical companies, which is something that leaders have been trying to do for decades — about 33 years— and this President was able to make that happen.
Ben LaBolt on WOLF (Hazleton/Scranton/Wilkes-Barre, PA) - 8/29
LABOLT: Seniors are saving money on their premiums across the board as a result of this legislation — about $800 a year for the average senior. And prescription drug costs across the board if you're a Medicare patient are capped at $2000 out of pocket.
Neera Tanden on Scripps News - 8/30
TANDEN: They are trying to protect their power to basically set any price they want, but that that power is wrong and we're ending it.
Christen Linke Young on KSKD (NBC St. Louis, MO) – 8/30
YOUNG: President Biden finally took on big pharma and won, giving Medicare the power for the first time ever to negotiate lower drug prices. The big pharmaceutical companies spent nearly $400 million lobbying to try to block Medicare from having the power to lower your drug costs.
Bidenomics Resources
Fact Sheet: Biden-Harris Administration Announces First Ten Drugs Selected for Medicare Price Negotiation
Statement: Statement from President Biden on Historic Action to Lower Prescription Drug Costs
Joseph R. Biden, Jr., ICYMI: Last Week in Bidenomics Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/364614