Most Americans’ earnings aren’t keeping pace with Biden-flation, Ways and Means Republican Leader Rep. Kevin Brady (R-TX) said on “Julie Mason Mornings” on Sirius XM. New reports this week showed consumer spending and business investment continue to fall as experts warn a cruel Biden economy will continue to shrink into the next year.
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Most Americans’ earnings aren’t keeping pace with Biden-Flation.
“One out of four Americans are delaying retirement. They can’t figure out how to make ends meet as they retire. Their nest egg has shrunk by a quarter just in the last year. It’s really putting a huge burden on Americans.
“We just saw a new report from the Dallas Federal Reserve that showed half of Americans have seen a net real pay cut because inflation has been so much larger than their paycheck. The average is a nearly nine percent pay cut.
“That means you’re giving up a full month of your wages to inflation. That is really hard on families. Health care went up almost 30 percent last year – the highest ever recorded. So did rent, and housing as well, the highest increases in history. When the President talks about our economy being strong, people just aren’t buying this.”
President Biden has missed GDP expectations in six of the seven quarters of his term.
“This new report yesterday was what I would call ‘ghost growth.’ The only growth we got was from selling oil and gas overseas because of the war in Ukraine, and some government spending.
“The big red flags here are consumer spending went down again, business investment tanked. Most economists believe at the end of 2022 we’ll see an economy that shrunk, and they predict another shrinking in 2023.”
President Biden is in denial about America’s wage-price spiral.
“Some experts believe that we’re in such a pickle economically that to break inflation we’ll have to shed 6 million U.S. jobs. I hope that is not the case.
“I know the Fed’s going to have to break the fever of inflation. Once you get into this situation it takes an average of 10 years to get out of it. The last two times for America, it took eight years and six, respectively. That’s just too cruel on families. It’s better to keep a firm hand, try to break the president’s inflation now rather than let it linger.”
Republicans’ Commitment to America includes the promise to restore an economy that’s strong.
“We’re in what they call a wage-price spiral – you get a paycheck increase, prices go up to match that, you get an increase, prices go up – no country wants to be in that. The only way to break inflation is that borrowing costs have to be higher than inflation. That’s why you don’t want inflation to catch hold because when those borrowing costs go up, people lose their jobs and the economy slows.”
“I want the President to course correct. Republicans next year are going to push for less government spending that fuels inflation, less taxes and regulation that fuels inflation, more American-Made energy, more workers reconnecting to work, and more innovation in supply chains to drive inflation down.”
Republicans are committed to making TCJA permanent for American families and small businesses.
“Locking in the current tax code creates a lot of certainty for small businesses and families. Three out of four dollars in tax cuts went to families and small businesses. Especially with inflation so harsh, that is pretty important. That permanence will create another million and a half jobs here in America and keep us as one of the most competitive economies in the world.”