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Bidenomics: Jobs report proves an uphill battle for President Biden

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It's another week in the books for President Joe Biden as his stimulus package pushes forward in Congrss. Yahoo Finance's Rick Newman breaks down how the President is doing.

Video Transcript


ADAM SHAPIRO: A little more than 15 minutes to the closing bell. We're holding onto the gains there on the Dow. We're up about 66 points. The components which are leading, you got Nike up about 3%, but Johnson & Johnson with the news about the request for EUA, Emergency Use Authorization, of their vaccine against COVID-19, they're up 1.6%. Cisco Systems also up about 1.6%. But let's turn our attention to politics. We've got Rick Newman here, and he's got the review for us this week in Bidenomics. Rick.

RICK NEWMAN: Hey. Well, the big news today, obviously, is the jobs report. Very weak, only 49,000 new jobs. We need way more than that to get out of this hole. But I think this is actually a very lucky beginning for Joe Biden. So he's taking over with the economy really at a low point. And this actually justifies the case for this huge $1.9 trillion relief bill he's pushing for.

Democrats made it clear this week they're not going to worry about getting Republicans to go along with that, which means they're not going to have to water it down as much as Republicans would want. So Biden is going to get-- I don't know if he's going to get 1.9 trillion, but he'll get something close.

And this economy could be taking off by the fall. The Congressional Budget Office put out a forecast recently saying they think job growth in 2021, this year, will average about 520,000, almost more than-- that's more than 10 times what we saw in January. And if that picks up, Biden could really be sitting in a sweet spot a year from now, as we're starting to talk about the '22 midterm elections. So I think Biden's timing is actually pretty lucky.

SEANA SMITH: And Rick, I'm curious what you think about the fact that we heard President Biden time and time again saying that this is a time for unity. He's excited to work with members of the GOP. Yes, he did hold that call earlier this week with the 10 Republican senators. But if the Democrats do push this forward without any support from Republicans, what kind of precedent do you think this could possibly send for Biden here over the next couple of years?

RICK NEWMAN: He's just following precedent. I mean, this is the way all the big legislation has happened, going all the way back, at least, to the stimulus bill in 2009. Republicans did the same thing. They passed the tax cut legislation in 2017 with no Democratic support. This just seems to be the way that big packages get done these days.

I mean, there are reasons to bemoan the lack of bipartisanship. And we do need bipartisanship for some important problems that really shouldn't be partisan. A climate policy and climate action is one of them. And that should not be a-- that should not really be a partisan matter. But we'll see. Biden's going to get to that either later this year or next year.

But Biden, you know, he sort of gave it the old college try, and he said, I'm willing to listen to what Republicans have to say. Today, he gave a little talk about the economy. He said there are very many fine people among Republicans. And I wondered if he was deliberately echoing what President Trump said about the racists in Charlottesville, Virginia, in 2017. But nonetheless, he did seem sincere. So he's talking nice, but he's just saying if the Republicans aren't going to go along, we're just going to do it on our own. And I'm not sure he has any choice.

ADAM SHAPIRO: So what happens next week when the impeachment trial starts? Does it slow down the Biden-- not only the agenda for the Biden administration, but there's still plenty of Cabinet nominees that have to be approved.

RICK NEWMAN: Yeah, I guess it could because the-- it would really be more the Cabinet nominees, I think, because the Senate impeachment trial, that does need to be kind of a contiguous affair that the Senate does need to go through from start to finish.

However, for the relief bill, Biden's target is to get something signed by, let's say, early March. So that's a month from now. There's a lot of work because there's a lot they're going to cram into that bill, and they need that time. But I think that's enough overhead for both houses in Congress to get the work done by March.

So I think Biden's going to sign this bill. It looks like it could be between $1.5 trillion and the $1.9 trillion he's asking for. And then it's on to whatever he decides he wants to be his next big ask in Congress.

ADAM SHAPIRO: Do you think we've heard the last of Marjorie Taylor Greene?

RICK NEWMAN: Absolutely not. [CHUCKLES] I think she's loving the publicity. Democrats are never going to let us forget about her. She, of course, is the QAnon conspiracy theorist who got elected as a Republican. She got kicked off of two committees this week by the Democrats. But look, she's already styling herself as a martyr and a victim. And I think that's going to be her storyline for the next two years.

The real interesting question is, does this hurt the Republican Party? Because a lot of traditional and sane Republicans can't stand her. And Democrats just want to keep her front and center. So we're going to be hearing about her probably every day, one way or another, for the next-- at least as long as she's in office.

ADAM SHAPIRO: I'm looking forward to the sequel of the Jewish space lasers. I mean, someone should go out and buy the domain, jewishspacelasers.com.

RICK NEWMAN: Yeah, and teach guys something new just about every day.

ADAM SHAPIRO: Rick Newman, thank you very much, the gift that keeps on giving. I'm going to let people figure out that.