How Biden’s White House Functioned With a Diminished President

Summary

WSJ What’s News: How Biden’s White House Functioned With a Diminished President
Release Date: December 19, 2024
Host: The Wall Street Journal – Alex Osola

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Government Shutdown and GOP Strategies

The episode opens with Alex Osola outlining the ongoing political maneuvers to prevent a government shutdown. President-elect Donald Trump has thrown his support behind a new GOP plan crafted by House Republican leaders. This endorsement comes shortly after Trump rejected a bipartisan agreement, which had already drawn ire from many within the GOP ranks.

"Donald Trump endorsed a new plan pulled together by House Republican leaders to try to avert a government shutdown this weekend," Osola reported at [00:28].

Representative Tom Cole emphasized the GOP's commitment to the new plan, stating that a House vote was imminent, though details remained scarce.

Despite potential passage in the House, the plan faces significant hurdles in the Democrat-controlled Senate. Tensions remain high as Trump and Elon Musk recently derailed a bipartisan deal, leading to skepticism among Democrats about engaging with Republican proposals.

Adding to the political landscape, a Georgia appeals court has intervened in the election interference prosecution against Donald Trump and others. The court cited District Attorney Fani Willis' romantic involvement with a top deputy as grounds for disqualification, potentially jeopardizing the case's future.

"The court said Willis's romantic relationship with a top deputy disqualifies her entire office," Osola noted at [00:52].

Trump's legal team has responded positively to the ruling, with lawyer Steve Sedow describing it as "well reasoned and just." Meanwhile, Willis plans to appeal to the Georgia Supreme Court, underscoring the ongoing legal battles surrounding Trump.

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US Housing Market Trends

Transitioning to the real estate sector, Nicole Friedman delves into the dynamics of the US housing market. Despite overall subdued activity, November saw a rise in home sales, marking the most significant year-over-year increase in over three years.

"Mortgage rates declined throughout the summer, and they hit a low of just above 6% in early September," Friedman explained at [03:08].

This decline in mortgage rates made homeownership more attainable for buyers previously hesitant at 6%, while sellers seized the opportunity to enter the market. However, with mortgage rates inching back towards 7%, Friedman anticipates a potential slowdown in sales in early 2025.

"Sales of existing homes in the US rose in November. It's the biggest year over year gain in more than three years," she added.

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Immigration's Impact on US Population Growth

The discussion shifts to immigration statistics and their profound effect on the US population. According to data released by the Census Bureau, immigrants contributed to 84% of the nation's growth in the year ending June 30, marking a 1% increase—the fastest since 2001.

Paul Overberg, a reporter with the Wall Street Journal's data team, provides geographic insights:

"Two thirds of the immigrants who arrived in the last year are in 10 states, the ones typically that you think of as immigrant gateways like California, New York, New Jersey, but also Texas and Florida," Overberg stated at [04:43].

While internal migration patterns from the pandemic era are stabilizing, states traditionally losing population are being offset by robust immigration flows in key states.

Alex Osola probes into the implications of Donald Trump's proposed immigration limitations and increased deportations:

"Since most of the growth the country is doing these days is from immigrants, it could bring population growth to a halt," Overberg cautioned at [05:31].

Such policies could stagnate economic growth, particularly affecting labor-intensive sectors like construction, potentially influencing wage rates and housing markets.

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Functioning of Biden's White House Amidst Declining Health

A focal point of the episode is an in-depth analysis of President Joe Biden's administration, particularly how it has operated given the president's perceived diminished capacity. Alex Osola introduces Rebecca Ballhaus, an Investigations reporter for the Wall Street Journal, who sheds light on the internal dynamics of the White House.

"Since early on in his presidency, his closest aides and advisors had been implementing strategies to work around the limitations of the oldest president in U.S. history," Osola explains at [07:00].

Rebecca Ballhaus elaborates on the tight-knit inner circle surrounding Biden, making it challenging for external parties to engage directly with the president:

"Many of the people that we spoke to talked about this model of Biden having a sort of very tight core inner circle around him and that it was very difficult to penetrate this inner circle," she remarked at [07:37].

This exclusivity means that interactions with senior Democratic lawmakers and key cabinet members, such as Defense Secretary Lloyd Austin and Treasury Secretary Janet Yellen, have become less frequent.

An illustrative example is Washington Democratic Congressman Adam Smith, who struggled to communicate his concerns about the Afghanistan withdrawal directly to Biden. Despite his efforts, Smith found himself sidelined, leading to public criticisms and a rare apology from Biden after escalating tensions.

"He tried to speak to Biden directly to share his insights about the region, but he just could not get on the phone with Biden," Ballhaus recounted at [09:18].

When questioned about the uniqueness of this administration's operational style, Ballhaus acknowledges that while some aspects are typical of any presidency, the intensity and exclusivity in Biden's case are unprecedented.

"Everything was more so in this one," she affirmed at [08:46].

The White House has countered these reports by emphasizing Biden's good health and the normalcy of a focused administrative structure, attributing the administration's efficiency to executing the president's agenda effectively.

"They’re very much playing down the degree to which any of this is unusual and are saying this is just how any standard administration operates," Ballhaus noted at [10:03].

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Additional Headlines

The episode also touches upon several other significant news stories:

• Amazon Workers' Strike: Thousands of Amazon employees have initiated a strike amid contract negotiations impasse and disputes over union recognition. The International Brotherhood of Teamsters heralds it as the largest strike against Amazon by US workers. In contrast, Amazon dismisses the strike as unlikely to impact operations, labeling it an illegal PR maneuver.

• FAA Drone Ban: The Federal Aviation Administration has imposed a month-long prohibition on flying drones over critical infrastructure in parts of New Jersey. This decision follows a series of unexplained drone sightings, aiming to enhance security measures.

• Media Companies' TikTok Strategies: Amid uncertainties surrounding TikTok's future in the US, media giants like Fox News (Fox Corp.) and the Wall Street Journal's parent company (News Corp.) are investing heavily in the platform. Isabella Simonetti discusses how these investments are driven more by the content format than long-term platform viability. The strategy focuses on capturing audiences on popular vertical video platforms, with adaptability to migrate content seamlessly should TikTok face a ban.

"It's about trying to grasp viewers where they are now more than it is thinking years and years ahead about this strategy," Simonetti explained at [12:00].

The interconnected ownership between Fox Corp. and News Corp. is highlighted, underscoring coordinated efforts in digital media strategies.

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Conclusion

Alex Osola wraps up the episode by summarizing the key takeaways and thanking listeners, promising more updates in the following editions.

"We'll be back with a new show tomorrow morning. Thanks for listening," Osola concluded at [12:45].

Produced by Pierre Bienname, Anthony Banci, and supervised by Michael Kosmides, this episode of What’s News offers a comprehensive look into the intersecting realms of politics, economics, and societal shifts influencing the current US landscape.

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Notable Quotes:

• Alex Osola: "Donald Trump endorsed a new plan pulled together by House Republican leaders to try to avert a government shutdown this weekend." [00:28]

• Nicole Friedman: "Mortgage rates declined throughout the summer, and they hit a low of just above 6% in early September." [03:08]

• Paul Overberg: "Two thirds of the immigrants who arrived in the last year are in 10 states, the ones typically that you think of as immigrant gateways like California, New York, New Jersey, but also Texas and Florida." [04:43]

• Rebecca Ballhaus: "Everything was more so in this one." [08:46]

• Isabella Simonetti: "It's about trying to grasp viewers where they are now more than it is thinking years and years ahead about this strategy." [12:00]

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This summary encapsulates the multifaceted discussions from the episode, providing insights into the current political strategies, economic indicators, and societal trends shaping the United States. Whether you're a regular listener or new to What’s News, this comprehensive overview ensures you stay informed on the pivotal issues of the day.

Transcript

[Gemini]

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[Alex Osola]

President elect Donald Trump endorses a new GOP plan to avert a government shutdown and how Joe Biden's inner circle kept the president's agenda on track Even with a diminished leader in charge, Biden was.

[Rebecca Ballhaus]

More insulated than the typical president. There were more layers around him. A broader share of the administration and of Democrats across government felt like it was difficult to get a hold of him.

[Alex Osola]

Plus home sales rose in November, though the broader market is still subdued. It's Thursday, December 19th. I'm Alex Osola for the Wall Street Journal. This is the PM edition of what's Headlines and Business Stories that Move the World today. Donald Trump endorsed a new plan pulled together by House Republican leaders to try to avert a government shutdown this weekend, a day after the president elect killed a bipartisan deal that had drawn widespread criticism from rank and file GOP lawmakers. Oklahoma Republican Representative Tom Cole said his party had reached a new agreement on how to proceed and that there would be a House vote later today without giving any details. Even if the measure passes the House, it would need to be approved by the Democrat controlled Senate. Earlier, angry Democrats signaled they are in no mood to play ball after Trump and his billionaire ally Elon Musk yesterday torpedoed the deal House Speaker Mike Johnson and other congressional leaders struck. Earlier this week, a Georgia appeals court removed Fulton County District Attorney Fani Willis from her election interference prosecution against Donald Trump and 14 other defendants. The court said Willis's romantic relationship with a top deputy disqualifies her entire office and that a trial judge erred by allowing Willis to remain on the case so long. The panel stopped short of throwing out the prosecution entirely, saying dismissal was too extreme, but it could still spell the end of the case. A spokesman for Willis didn't respond to a request for comment. In a brief court filing, Willis said she would ask the Georgia Supreme Court to review today's decision. Trump lawyer Steve Sedow called the ruling well reasoned and just. Home buying activity in the US Remained subdued for the second consecutive year, according to the national association of Realtors. Sales of previously owned homes in 2024 are on track to hit the lowest level since 1995. Still, sales of existing homes in the US rose in November. It's the biggest year over year gain in more than three years. Nicole Friedman covers the US Housing market for the Wall Street Journal and tells us what's behind the recent uptick.

[Nicole Friedman]

Mortgage rates declined throughout the summer, and they hit a low of just above 6% in early September. And so that did bring some more activity into the market that some buyers who had been on the sidelines felt like they could stomach a 6% rate. And similarly, some sellers who had just been waiting and waiting to move finally felt like, okay, we'll jump in and take advantage of this moment. And so those lower rate rates in August and September have translated into higher home sales in October and November because it takes a month or two for a home sale to close. But mortgage rates since then have climbed again and they're edging up back towards 7%. And so the expectation is that sales could become sluggish again in early 2025.

[Alex Osola]

News Corp. Owner of the Journal, also operates realtor.com under license from NAR in US markets. The S&P 500 and the Nasdaq closed down about 0.1%, while the Dow rose less than 0.1%. New census data released today shows that immigrants are having a huge impact on US Population growth. The Census Bureau said today that newcomers accounted for 84% of U.S. growth in the year ended June 30. The agency now estimates the U.S. grew about 1% in the last year, the fastest growth since 2001. Paul Overberg is a reporter with the Wall Street Journal's data team and joins me now from Washington. So, Paul, where are we seeing most of this growth geographically?

[Paul Overberg]

Two thirds of the immigrants who arrived in the last year, according to the Census Bureau, are in 10 states, the ones typically that you think of as immigrant gateways like California, New York, New Jersey, but also Texas and Florida. Movement around inside the country, what we're seeing is a slowdown of the shift that was really strong during the pandemic down to the states of the Sun Belt. The states that were losing population are still losing to other states, but New York and New Jersey and California are actually offsetting all their losses to other states with strong immigration flows.

[Alex Osola]

Interesting. So President Elect Donald Trump has proposed limiting immigration and boosting deportations. How might that impact the U.S. s ability to grow?

[Paul Overberg]

Well, since most of the growth the country is doing these days is from immigrants, it could bring population growth to a halt. And most of these people are working, they're working age people. So that affects especially job categories where immigrants are strong, like in construction. So that will affect things like wage rates and housing construction and prices as well. The idea is generally that as long as the population is growing, the need for goods and services grows. And so that means more services and goods can be produced and that increases the size of the economy and profits for companies and all that sort of thing.

[Alex Osola]

That was Wall Street Journal reporter Paul Overberg. Coming up, how the White House functioned with a diminished Biden in charge. That's after the break.

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[Alex Osola]

On June 27, when President Joe Biden took the stage to debate Donald Trump, his mental acuity became an insurmountable issue. But our reporting shows that since early on in his presidency, his closest aides and advisors had been implementing strategies to work around the limitations of the oldest president in U.S. history during his four years in office. Some administration officials and lawmakers said these tactics kept Biden insulated even as they kept his agenda on track. Wall Street Journal Investigations reporter Rebecca Ballhaus is here to tell us more. Rebecca, so these workarounds, how have they affected Biden's presidency?

[Rebecca Ballhaus]

Many of the people that we spoke to talked about this model of Biden having a sort of very tight core inner circle around him and that it was very difficult to penetrate this inner circle. His advisors told visitors to keep meetings focused. Interactions with senior Democratic lawmakers and some cabinet members, including powerful ones such as Defense Secretary Lloyd Austin and Treasury Secretary Janet Yellen, were infrequent or grew less frequent. Biden has always operated with a core set of advisors around him. That's how he likes to organize his offices, ever since he was a senator. In addition to that, he took office when Covid was raging, and as the oldest president in US History, his staff was very concerned about him catching the virus and they wanted to limit in person interactions with him. But what we saw was that that shell that was sort of constructed for the pandemic was fully taken down and his advanced age and the Power that he had attained hardened it.

[Alex Osola]

How typical, really, is this for a president? Because I imagine like, yeah, presidents are busy, they're hard to reach, their meetings are short and they're focused. Is this atypical?

[Rebecca Ballhaus]

It's a great question. Many parts of this there are certainly typical. You know, of course you're meeting with the President. Of course you should keep the meeting focused. Of course, not everybody who wants the President's time can get his time. What people who have worked for Biden's administration, but also for previous administration said was just that everything was more so in this one.

[Alex Osola]

One of the things I found interesting in the piece was about Washington Democratic Congressman Adam Smith. He tried to share concerns with Biden before the US withdrew from Afghanistan in 2021. What happened there?

[Rebecca Ballhaus]

Smith was at the time the chair of the House Armed Services Committee. And he was concerned because he believed that the Biden administration, and Biden specifically was making overly optimistic comments about how the operation might go. He tried to speak to Biden directly to share his insights about the region, but he just could not get on the phone with Biden. And in the end, he ended up publicly making some criticisms of how the pullout had been handled. He got an angry phone call from the Secretary of State and it seems like he sort of gave it right back to him. And in the end, Biden called him to apologize. And it's the only phone call that Biden made to Smith in his four years in office, which is a pretty remarkable detail.

[Alex Osola]

How has the White House responded to our reporting?

[Rebecca Ballhaus]

The White House all along has maintained that Biden is in great health. They say he's not declining, that he has a very accomplished record as president, that he often solicits opinions from outside experts that it's normal for senior White House staff to have these sorts of high level meetings and that they're just executing Biden's agenda at his direction. So they're very much playing down the degree to which any of this is unusual and are saying this is just how any standard administration operates.

[Alex Osola]

That was Rebecca Ballhaus, an investigations reporter for the Wall Street Journal. Thousands of Amazon workers have gone on strike during the busy run up to Christmas. They're striking over contract negotiations and the company's refusal to recognize their union. The International Brotherhood of Teamsters, the union that represents the Amazon employees, called the action the largest ever strike against amaz by US Workers. Amazon said the strike wasn't expected to affect operations and branded the action as an illegal public relations play. The Federal Aviation Administration issued a month long ban on flying drones over critical infrastructure in parts of New Jersey. The move comes after a string of unexplained drone sightings in the state. Media Companies in the US are making bets on TikTok at a time when the future of the platform itself is in question. A federal appeals court earlier this month said. Congress does have the power to shut down the Chinese backed app, though that decision is likely to be appealed. According to data from social media research firm Credo IQ, in October and November, 51 of the top 150 political TikTok accounts in the US were publishers like the New York Times, MSNBC, Fox and CNN. Isabella Simonetti covers the business of television and streaming and explained to our Tech News Briefing podcast why media companies are investing time and effort in a platform that could soon be banned in the.

[Gemini]

U.S. it's about the format more than it's about the platform. A lot of the work that these companies are doing on TikTok can be easily translated to other vertical video platforms like Instagram Reels and TikTok right now is so huge. And even if a 25 year old or a 26 year old sees a Fox News TikTok or an MSNBC TikTok and then TikTok is banned, they might then look to follow them on another platform or keep up with their work elsewhere. It's about trying to grasp viewers where they are now more than it is thinking years and years ahead about this strategy because no one knows what the future of TikTok is going to be.

[Alex Osola]

Fox News parent Fox Corp. And the Wall Street Journal's parent company News Corp. Share common ownership and you can hear more about this story in today's episode of our Tech News Briefing podcast. And that's what's news for this Thursday afternoon. Today's show was produced by Pierre Bienname and Anthony Banci, with supervising producer Michael Kosmides. I'm Alex Osola for the Wall Street Journal. We'll be back with a new show tomorrow morning. Thanks for listening.