Republicans warned against Democrats’ policies that led to the 40-year high inflation that is robbing workers’ paychecks and have consistently offered solutions to help families. Rather than work across the aisle, Democrats claim Republicans don’t have answers–and news outlets are mistakenly repeating the claim.
Here are the facts:
CLAIM: “What then do you think of Republicans’ plans for reducing prices? Unfortunately, hard to say. Because they don’t exist.”
FACT: If Democrats wanted to get serious about addressing 40-year high inflation and the skyrocketing price of gas, they would stop the gimmicks and work with Republicans to address rising costs by:
- Abandoning their plans for more spending and crippling tax hikes on Main Street businesses and working families and making TCJA permanent;
- Unleashing domestic energy production by easing regulations;
- Ending the Biden Administration’s trade moratorium to sell more American goods overseas.
Ways and Means Republican Leader Rep. Kevin Brady (R-TX) has urged Democrats to work with Republicans and stop making inflation worse: “I would love to work with the President on this issue, but he just doesn’t have discussions with Republicans on these policy issues.”
Rep. Brady has been offering solutions, saying that we can fight inflation by making workers the top priority, stop the emergency spending, make tax reform permanent, and help the supply side of the economy.
CLAIM: “President Biden’s stimulus bill in March 2021 likely helped reduce unemployment much faster than predicted, which prevented some of the long-term ‘scarring’ workers experienced after the Great Recession.”
FACT: Democrats $2 trillion so-called “stimulus” prolonged unemployment and stoked inflation, despite warnings from former Obama-Biden Administration officials like former Director of the National Economic Council Larry Summers and former Chairman of the Council of Economic Advisers Jason Furman..
- In fact, Furman attributes at least 2.5 percent of current inflationary pressure to the massive bill.
- When GOP states opted to end Democrats’ lavish unemployment benefits early, more Americans joined the workforce, according to experts at the St. Louis Fed. Analysis from the San Francisco Fed also attributes Democrats’ spending to the sustained increase in inflation.
- This report echoes the findings of a similar study that found ending the unemployment benefits boosted return to work by 14 percentage points, further proof that Democrats held back our recovery by keeping workers disconnected from their jobs.
CLAIM: “Other countries are also facing high price growth, and they didn’t pass Biden’s American Rescue Plan. Rather, they’re facing the same supply-side constraints we are.”
FACT: The U.S. has higher inflation than most developed nations and the distinguishing feature was President Biden’s so-called stimulus.
- Analysis from the San Francisco Fed shows U.S. inflation is leading the world owing largely to the “sizable fiscal support measures aimed at counteracting the economic collapse due to the COVID-19 pandemic.”
- A chart from TheRightFacts.org using Consumer Price Index (CPI) data from the Bureau of Labor Statistics shows that inflation has increased since the day President Biden took office in January 2021, and began its rise to the fastest rate in 40 years the month directly after Democrats rammed through their partisan $1.9 trillion bill (March 2021).
CLAIM: “Republicans argue [Build Back Better] would make inflation worse. (Biden has sometimes argued that this agenda would reduce inflation. My own view: It would likely have a negligible effect on inflation either way, and measures such as universal pre-K or climate investments should be judged on their own merits.)”
FACT: Build Back Better would slow our economy, worsen our debt, kill at least 650,000 U.S. jobs, and cut workers’ paychecks, according to another new study.
- New analysis on Democrats’ economic agenda found that “the central conceit of ‘Build Back Better’ – that its higher taxes to finance new spending are pro-growth – is ultimately unachievable under any plausible scenario.”
- Even a liberal study found Democrats’ new child care entitlement plan could raise child care costs between $13,000 to $27,000 a year for middle class families depending on the state.
CLAIM: “Republicans have tossed out some red herrings, such as increasing oil production by ‘reopening’ the Keystone XL pipeline. […] Similarly, Republicans repeat the mantra ‘energy independence,’ but it’s not clear what they mean by that or how they propose to achieve it.”
FACT: President Biden and congressional Democrats have attacked traditional energy, proposing to raise taxes by $145 billion on Made-in-America oil and gas, pipeline and refining firms—killing over 1 million jobs, raising fuel prices, and leaving America more dependent on foreign oil.
- House Republicans have legislation to boost American energy production and ensure domestic supply.
- Democrats are more interested in advancing their Green New Deal and increasing U.S. reliance on Russian critical minerals and Chinese-manufactured batteries and solar panels than promoting domestic energy production.
- Skyrocketing gas prices will now cost the average American household an extra $2,000 per year. Just this year, Americans will spend $5,000 on gas, a 78 percent increase from a year ago.
CLAIM: “Their [Republicans’] proposals include, for example, requiring every American to pay something in federal income taxes, as National Republican Senatorial Committee head Rick Scott (Fla.) has proposed.”
FACT: The Washington Post has debunked this claim twice, awarding President Biden “three (almost four)” Pinocchio’s, noting that “No legislation has been crafted, and no other Republican lawmakers have announced their support.”
BOTTOM LINE: If the Democrats and the Biden Administration really did make fighting inflation their #1 priority, they would work with Republicans to improve Main Street optimism, unleash American energy production, and promote economic growth.