Five Takeaways From Biden’s State of the Union Speech

(Bloomberg) -- President Joe Biden opened his first State of the Union speech by labeling Russian President Vladimir Putin a “dictator” and vowing to stand by Ukraine -- then quickly pivoted to his biggest domestic priorities of combating inflation and lowering drug prices.

In his 62-minute remarks to Congress on Tuesday night, Biden tried to revive his stalled “Build Back Better” economic package. This time, he rebranded it as “Building a Better America.”

Here are five conclusions.

He'll stare down Putin

The first 10 minutes were about highlighting a united front over Russia's invasion of Ukraine. It was one of the rare bipartisan moments in the speech, punctuated by the tearful mouthed “thank you” from Ukrainian Ambassador Oksana Markarova, who was sitting in the gallery as first lady Jill Biden's guest.

Biden called Putin a “dictator,” and asked the audience to stand to show their support for Ukraine.

“He thought he could roll into Ukraine and the world would roll over. Instead he met a wall of strength he never imagined. He met the Ukrainian people,” he said. “He thought the West and NATO wouldn't respond. And he thought he could divide us at home. Putin was wrong. We were ready.”

He's putting Covid behind him

Following the lead of governors around the country, Biden announced that the disease that hobbled the U.S economy “need no longer control our lives.” The biggest virus-related news was that that the federal government would soon make Pfizer's anti-viral pills available at pharmacies for free immediately upon a positive test.

Biden also told American workers to “fill our great downtowns again.” Many restrictions have already been lifted as Congress sat unmasked but socially distanced in the House chamber. “People working from home can feel safe to begin to return to the office,” he said.

The national rate of coronavirus infections on average increased less than 0.1% over the past week, and more states are lifting mask mandates.

Inflation is job one

Biden sought to sympathize with Americans feeling the pain of inflation at the grocery store check-out and gas pump. His “top priority is getting prices under control.” The president recalled the uncertainty he felt when his father lost his job. “I grew up in a family where if the price of food went up, you felt it,” Biden said.

He demanded more competition in concentrated industries that were overcharging Americans, and also pushed for cutting the prices of prescription drugs, childcare, and the reduction of health-care premiums, tax breaks to encourage a shift to address climate change, and more affordable housing.

“One way to fight inflation is to drive down wages and make Americans poorer,” Biden said. “I think I have a better idea to fight inflation. Lower your costs, not your wages.”

China barely gets a mention

It was notable that there were only two mentions of China in the hourlong speech, given the increased tensions between the world's two biggest economies. He only mentioned China in the context of competition and infrastructure.

“As I've told Xi Jinping, it is never a good bet to bet against the American people,” he said, citing a line he often uses to push for investment in domestic manufacturing.

He did not mention the country in the context of the war in Ukraine or his fight against autocracies and human rights abusers.

He wants to be seen as a moderate, not a radical

Republicans have already identified their attack line for this year's congressional elections. They will rail against Biden's “socialist” policies. The president's speech sought to dispel such arguments.

He drew applause from the GOP side when he disparaged the notion of “defunding the police,” a rallying cry after the murder of George Floyd by Minneapolis police in 2020. And he highlighted his attendance at the funeral of two New York City cops who were killed in the line of duty.

He said it was “time to open schools and businesses,” a line that Republicans used often during the pandemic-driven lockdowns, and he drew a standing ovation from Texas Senator Ted Cruz and others when he called for increasing protections at the U.S.-Mexico border.