Democrats Search for Policy Lessons After US Inflation Fallout

Democrats received a clear message in 2024: A strong labor market isn’t enough to win elections. That reality could shape how the government responds to the next economic downturn.

Scarred by the long, slow recovery following the 2007-09 recession, President Joe Biden and his advisers banked their political fortunes on going big. In early 2021, Democrats pushed through a staggering $1.9 trillion fiscal package meant to bolster hiring and an economy still weathering the uncertainties of the Covid-19 pandemic.

Their bet worked — but not exactly as they hoped. The labor market recovered rapidly and remains solid today, but ...