President Biden does not have a plan to fight inflation and is in denial about how his policies have sabotaged our recovery and would make matters worse.
MYTH: President Biden deserves credit for economic progress in this recovery.
FACT: Democrats have sabotaged our economic recovery, while touting “recovered” jobs as “new” jobs.
- In January, ADP economist Nela Richardson warned that “all the jobs that we have seen gained are recovered jobs that were lost. We are not yet producing new jobs.”
- Despite President Biden’s claims that wages are up, Bidenflation actually slashed wages by more than 3 percent, which is why a majority of Americans report feeling “uneasy about the state of the country,” say things in America are “going badly,” and feel that the economy is “bad.”
- Democrats have vowed to repeal the GOP’s Tax Cuts and Jobs Act (TCJA) which boosted workers’ wages and resulted in historic business investment.
MYTH: Inflation is the result of Putin’s invasion and lingering effects of the pandemic.
FACT: Democrats’ $2 trillion so-called COVID stimulus fueled the inflation fire.
- 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).
- Even 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 warned against Democrats’ $2 trillion so-called “stimulus.”
- Analysis from the San Francisco Federal Reserve finds that U.S. core inflation is higher than other nations – and attributes a part of it to the $2 trillion “stimulus.” These findings were echoed in a report from the nonpartisan Congressional Budget Office (CBO).
- The St. Louis Fed found that had states across the country ended unemployment bonuses, employment would have increased by 1.6 million jobs – bolstering our economic recovery.
MYTH: Republicans have no plan to fight inflation and want to raise taxes.
- The Washington Post went on to note that “no legislation has been crafted, and no other Republican lawmakers have announced their support.”
MYTH: Democrats have policies that will fix inflation.
FACT: Democrats’ so-called “solutions” will make inflation worse, slow our economy, worsen our debt, kill U.S. jobs, and cut workers’ paychecks.
- The Biden Administration and congressional Democrats ignored inflation, and now, only offer crippling tax hikes, blame games, and gimmicks.
- American Action Forum commissioned an updated analysis from Rice University on Democrats’ economic agenda and 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.”
- A CBO report found that letting TCJA’s temporary provisions expire – as Democrats intend to do – will slow economic growth.
BOTTOM LINE: If 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.