Rep. Jim Clyburn (D-S.C.), the No. 3 House Democrat, admitted last week that lawmakers knew beforehand that President Joe Biden’s economic bills would exacerbate inflation.
The Biden administration, on the other hand, has repeatedly defended those bills — the American Rescue Plan and the Inflation Reduction Act — claiming they have been good for Americans.
What did Clyburn say?
Speaking on MSNBC last Thursday, Clyburn surprisingly admitted that the Democrats’ “recovery program” made prices rise.
“Let me make it very clear. All of us are concerned about these rising costs, and all of us knew this would be the case when we put in place this recovery program,” he said. “Any time you put more money into the economy, prices tend to rise.”
Despite making a definite connection between Biden’s legislation and inflation, Clyburn went on to blame “price-gouging,” Russia, and “corporations who are raising prices when they should not” for the nation’s ongoing economic woes.
Last week, White House press secretary Karine Jean-Pierre also drew a connection between Biden’s pandemic stimulus and inflation — but inadvertently.
After a reporter noted that prices began rising 18 months ago, Jean-Pierre said, “Well, 18 months ago, the president signed the American Rescue Plan.”
What do economists say?
Earlier this year, economists at the Federal Reserve Bank of San Francisco explained how the American Rescue Plan exacerbated disproportionate inflation in America compared to other developed nations.
The economists explained:
[S]ince the first half of 2021, U.S. inflation has increasingly outpaced inflation in other developed countries. Estimates suggest that fiscal support measures designed to counteract the severity of the pandemic’s economic effect may have contributed to this divergence by raising inflation about 3 percentage points by the end of 2021.
Even the New York Times admitted last week that economists believe the American Rescue Plan overheated the economy and thus “contributed to accelerating inflation.”
Meanwhile, the Inflation Reduction Act will not actually reduce inflation. In fact, core inflation — inflation minus the price of energy and food — has continued to increase.
* Article from: The Blaze
