Rep. Jim Clyburn (D-S.C.), is the No. 3 House Democrat, said last week that legislators knew that President Joe Biden’s economic bills would increase inflation.
On the other hand, the Biden administration has repeatedly defended these bills, the American Rescue Plan, and the Inflation Reduction Act, claiming that they have been beneficial for Americans.
What did Clyburn have to say?
Clyburn, speaking on MSNBC last Thursday admitted that prices rose because of the Democrats’ “recovery” program.
“Let me be very clear. We are all concerned about rising costs. This is what we knew when we created the recovery program.” he stated. Prices tend to rise when you invest more money in the economy.
Clyburn argued that there was a direct connection between inflation and Biden’s legislation, but he also blamed Russia’s “price-gouging” and other “corporations that are raising prices when it is not necessary” for the country’s continuing economic woes.
Jean-Pierre responded to a reporter who pointed out that prices had been rising for 18 months. He said, “Well, 18 month ago, the president signed The American Rescue Plan.”
What are the opinions of economists?
Economists from the Federal Reserve Bank of San Francisco described earlier this year how the American Rescue Plan has exacerbated America’s disproportionate inflation compared to other countries.
The economists explained it:
Since the beginning of 2021, U.S. inflation has outpaced that in other developed nations. According to estimates, fiscal support measures to combat the economic effects of the pandemic may have contributed to the divergence. They raised inflation by about 3 percentage points at the end of 2021.
The New York Times even admitted last week that economists believed the American Rescue Plan overheated and contributed to “accelerating inflation.”
The Inflation Reduction Act won’t actually lower inflation. Core inflation, which is the inflation less the price of food and energy, has risen in reality.