President Biden’s new strategy to fight inflation looks a lot like his old strategy to fight inflation – more denial, more excuses, and no solutions. Here are nine misleading claims in his most recent remarks.
CLAIM: “Republicans have no plan to bring down prices.”
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;
- Unleashing domestic energy production by easing regulations;
- Ending the Biden Administration’s trade moratorium to sell more American goods overseas.
(More: Dems Game Out More Gas Gimmicks)
CLAIM: “Republicans will raise taxes on 75 million American families and sunset programs like Social Security, Medicare, and Medicaid.”
FACT: The Washington Post awarded the President three Pinocchio’s for this debunked claim, noting that “No legislation has been crafted, and no other Republican lawmakers have announced their support.”
CLAIM: President Biden claims to have a plan to address inflation.
FACT: The Administration has failed to address inflation for the past year and continues to ignore it.
- Before the crisis in Ukraine, the Administration dismissed inflation as “transitory”.
- Then, when it became obvious higher prices were here to stay, the Biden Administration attempted to pass the buck onto everyone but themselves – from American businesses and industries like meatpackers.
- The Administration also falsely claimed that inflation is part of a global trend – which has been debunked by the San Francisco Federal Reserve Bank.
- And reminder: Biden claimed that inflation peaked in December, but it has continued to rise every month afterwards.
FACT: President Biden’s tax hikes and spending bill would worsen inflation.
- Even Mark Zandi, the White House’s preferred economic forecaster, says the Build Back Better bill will worsen inflation:
“None of these ideas so far will help to a meaningful degree, and could do some harm because they could juice up demand at a time supply is constrained by the pandemic and worsen inflation.”
CLAIM: “The President’s plan will lower the cost of childcare, elder care, and the cost of prescription drugs.”
FACT: Americans prefer Republicans’ approach that lowers costs over Democrats’ approach of simply centralizing more power.
- According to a liberal study, Democrats’ new child care entitlement plan could raise child care costs by $13,000 a year for middle class families making $65,000 or more depending on the state. (More: Top 5 Reasons to Oppose Democrats’ Toddler Tax)
- A recent poll found that voters prefer Republicans’ plan to lower costs for medicines delivered in a doctor’s office, cap out of pocket drug spending for seniors, and allow Americans with high deductible plans to pay less for certain services and prescriptions.
- Fewer voters support Democrats’ plan to allow the federal government to negotiate drug prices for Medicare.
CLAIM: “The President’s “fix” of the “family glitch” has given more Americans access to health care.”
FACT: Democrats’ partisanship on health care has driven higher prices and families losing coverage and access to their doctors.
- Since the Affordable Care Act became law, the average price paid for health insurance (“premiums”) jumped by 143 percent between 2013 and 2019. Over 10 years, spending on health care per person increased by 28.7 percent.
- At the same time that premiums more than doubled in the individual market, deductibles for ACA-compliant coverage also increased by an average of 35 percent — over $1,700 for individuals and $3,600 for families.
- Democrats will make these price increases even worse with Washington price controls that will kill 342 lifesaving cures and result in less innovation, while letting countries like China take the lead.
CLAIM: “Corporations and the wealthiest Americans don’t pay their fair share.”
FACT: Corporate tax revenue is shattering records under Republican tax reform.
- Corporate tax revenue is coming in 22 percent higher than last year’s record level, according to the CBO’s most recent monthly budget review.
- Corporate tax revenue is set to hit a new record of $454 billion. CBO had predicted in June 2017 that corporate tax revenue would only hit $389 billion in 2022.
- As a share of GDP, corporate tax revenue is on track to reach its highest level since 2015 (1.9 percent of GDP).
CLAIM: “Democrats will build energy independence and invest in the strongest ever fuel economy standards.”
FACT: Families are faced with higher gas prices – more than $4 per gallon on average – up nearly 50 percent from last year – because of Democrats’ refusal to support expanding our energy supply and promoting energy independence.
- President Biden’s first executive order killed the Keystone XL Pipeline, contributing to the massive spike in energy prices.
- By banning new oil and gas leasing on federal land at the behest of Green New Deal enthusiasts, President Biden attacked blue-collar workers and their families by making energy less affordable.
- Democrats’ want to give away $550 billion in green welfare subsidies to special interests and the wealthy – literally sending government checks to the Top 1 percent and the biggest corporations.
- Wealthy individuals with up to $500,000 in income would enjoy their own green welfare, including a $12,500 check to buy a luxury electric vehicle.
CLAIM: “We’re seeing record job growth and low unemployment.”
FACT: The April Jobs Report revealed that the economy lost 353,000 workers and the labor force shrunk, creating more pressure for higher prices while hammering small businesses whose optimism is plummeting.
- A majority of small businesses fear Bidenflation will close down their business.
- Our labor force is shrinking, and President Biden is failing to deliver on his jobs promises. (More: EXPERT: Biden “Hasn’t Added One Single Job from 2019 High Watermark”)
- According to Ways and Means analysis of the Bureau of Labor Statistics’ data, real wages have decreased by over 3 percent since President Biden took office. (More: Fact Check: American Workers See Largest Decline in Real Wages Since Data Began Being Reported)
- Meanwhile, American families’ view of the U.S. economy under President Biden is now the worst it’s been in a decade, according to a new CNN poll.
- President Biden’s policies raised recession risks and held back a return to work. (More: Fact Check: Dems’ War on Work Raised Recession Risks & Held Back Returning to Work)
CLAIM: “Inflation is part of a global trend.”
Fact: A new 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 President Biden’s decision to continue unemployment bonuses and government stimulus after the pandemic receded. (More: San Francisco Federal Reserve Analysis Debunks White House Excuses on Inflation)
- Despite the end of the pandemic, the Biden Administration continued to send monthly “stimulus” checks and unemployment bonuses, which increased inflation by about 3 percentage points by the fourth quarter of 2021.
- Former Obama-Biden economic adviser Larry Summers himself warned that President Biden’s so-called “stimulus” would trigger inflation.
- But President Biden and Democrats have ignored inflation, denied it, dismissed it as “transitory,” and are even trying to pass the blame for rising costs onto American businesses and industries like meatpackers and energy suppliers. (More: Fact Check: Biden Budget Director is Wrong — American Inflation Isn’t Just Part of a Global Trend)