With prices up more than 6 percent than last year and no end in sight, many former Obama-Biden economic officials are warning against the “unprecedented amount of spending” taking place under the Biden Administration and the risk inflation poses to economic growth.
CLICK HERE to read the full New York Times op-ed. Excerpts are below.
Steven Rattner, the Obama “Auto Czar,” charged with the recovery of the auto industry after the financial crisis, notes that Democrats’ tax-and-spend bill is full of “budget gimmicks” and will contribute to even higher inflation:
“[T]he administration should come clean with voters about the impact of its spending plans on inflation. Build Back Better can be deemed ‘paid for’ only if one embraces budget gimmicks, like assuming that some of the most important initiatives will be allowed to expire in just a few years. The result: a package that front-loads spending while tax revenues arrive only over a decade.
“The Committee for a Responsible Federal Budget estimates that the plan would likely add $800 billion or more to the deficit over the next five years, exacerbating inflationary pressures.”
Echoing analysis by Federal Reserve officials, Rattner also points to Democrats’ so-called covid stimulus earlier this year for boosting inflation:
“The original sin was the $1.9 trillion American Rescue Plan, passed in March. The bill — almost completely unfunded — sought to counter the effects of the Covid pandemic by focusing on demand-side stimulus rather than on investment. That has contributed materially to today’s inflation levels.”
CLICK HERE to read the full op-ed.
Bottom Line: Democrats’ crippling tax-and-spend spree will cause inflation to soar even higher, slow economic growth, and leave families falling further behind.
Democrats’ bill will cut taxes for the wealthy, while hiking taxes on the Middle Class.
- The Committee for a Responsible Federal Budget found that the SALT tax carveout would “be nearly 50 times as large as the benefit of the expanded child tax credits for a typical family over five years.”
- Analysis from the Left-leaning Tax Policy Center (TPC) found that Democrats are providing a hefty tax giveaway to the top 5 percent, while hiking taxes on 20-30 percent of middle-income earners.
President Biden is bungling our economic recovery.
- Families should brace for higher prices for a decade due to President Biden’s spending binge. According to Moody’s Analytics, the White House’s favored economic forecaster, consumer prices will rise 2.24 percent higher after the Biden infrastructure, American Rescue Plan, and Build Back Better spending than in a Biden-free economy.
- Analysis from the Federal Reserve Bank of San Francisco confirmed that Democrats’ spending earlier this year boosted Bidenflation.
- In October, a top Federal Reserve official warned of growing risks of inflation, including from additional government spending being contemplated by the Biden administration.
If inflation persists at the current rate, households will lose $1,755 in real wages by the end of President Biden’s first year in office.
- During October, inflation increased by an annualized 11.9 percent – a rate not seen since near the height of stagflation in 1980.
- Seven out of the last nine full months President Biden has been in office, workers’ real wages declined.
- Experts at Moody’s say that families are spending at least $175 more per month on food, fuel, and housing.