Joe Biden on Monday delivered remarks on the state of the economy where he suggested that a $4.7 trillion spending plan could be the solution to ever-increasing inflation under his administration.
During the briefing, Biden insisted that the current price hikes in consumer products and basic necessities will not lead to “persistent inflation” but will be “temporary,” adding it is to be “expected” due to the COVID-19 pandemic.
“Some folks have raised worries that this could be a sign of persistent inflation. But that’s not our view. Our experts believe and the data shows that most of the price increases we’ve seen are — were expected and expected to be temporary,” Biden said.
He also claimed there are various bills he expects Congress to pass that would amount to about $4.7 trillion in spending that he says could reduce inflation, according to the New York Post.
“If your primary concern right now is inflation, you should be even more enthusiastic about this plan,” Biden claimed. “These steps will enhance our productivity, raising wages without raising prices, and won’t increase inflation. It will take the pressure off of inflation.”
Earlier this month, the Bureau of Labor Statistics revealed consumer prices increased by 5.4 percent in the 12 months leading up to June 2021.
According to the Americans for Tax Reform Organization, consumer prices increased by 0.9 percent from May to June and the annual inflation rate was 1.4 percent before Biden took over the White House. ATR fears Biden’s spending plans will make the “problem even worse.”
While the Biden administration remains reluctant to be concerned about the inflation warning signs, former Treasury Secretary Larry Summers has been sounding the alarm for months that Biden’s spending agenda could create “inflationary pressures of a kind we have not seen in a generation.”