Gaza – Israel War Splits Democrats

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In-Brief

1. The Palestinian – Israeli War is dividing Americans and especially dividing Democrats.
2. The ouster of Liz Cheney from the Republican House leadership will have very little long-term political effect.
3. President Biden proposed a $2.3T “infrastructure” bill that is more of a social-welfare bill than an infrastructure bill. It will not pass in its current form. The Republicans have offered a $600B plan that is almost all real infrastructure. A compromise now looks possible but radical Democrats are pushing hard for the entire plan. Without Republican votes this plan is dead.
4. More progress on winning the war against Covid-19. We are near herd immunity. 80 to 90% of Americans now have Covid-19 antibodies in our bodies which resist the disease.
5. The US economy began a strong recovery last June. The recovery has been V-shaped, and the economy will likely grow by 8% this year or more. It grew by 6.4% in the 1^ST The unemployment rate is likely to fall to less than 5% by year’s end. The most recent jobs report was +266,000 jobs but many more were expected. Watch the next two months of reports to see if this was a blip or a trend.