A top Democrat has openly admitted that his party was well aware of the fact that its spending policies were going to create inflationary conditions, forcing Americans to deal with the ‘hidden tax’ on virtually everything they buy for most of Joe Biden’s presidency.
Rep. James Clyburn of South Carolina, the House Majority Whip, said in an interview with MSNBC on Thursday that the Biden administration and Congressional Democrats were aware some policies would drive up prices for consumers.
“All of us knew this would be the case when we put in place this recovery program. Any time you put more money into the economy, prices tend to rise. And we do know that price gouging takes place, and that’s what Senator Warnock is concerned about in Georgia,” Clyburn told host Jose Diaz-Balart.
“We knew the moment we went to aid the Ukrainians, the Russians would do what they could possibly do to undercut this administration, so they cut this deal with OPEC nations to reduce the production of oil so as to drive the price of gasoline up,” he added.
In March 2021, roughly two months after he took office, President Joe Biden signed the American Rescue Plan passed by the majority-Democratic Congress, which contained $1.9 trillion in new spending. Since then, Biden also signed the Inflation Reduction Act, which consists mostly of funding for green energy programs, healthcare spending, and a large increase to fund an additional 87,000 IRS staffers.
The Daily Caller noted:
The Consumer Price Index increased 8.2% year-to-year in September after rising by 8.3% in August, 8.6% in July, 9.1% in June and 8.5% in May. The Biden administration and Democrats have blamed high gas prices on Russian President Vladimir Putin, but some experts have said that President Biden’s hostility towards fossil fuel production is to blame.
Also, gas prices have fallen for nearly two months, but inflation in September was still above 8 percent.
“We are not going to allow these kinds of intimidations be it by big, corporations who are raising prices when they should not be or foreign countries who are doing untoward things in retaliation for our assisting our alliances that’s not going to trump, and that’s an intended pun, there our concern for people getting back on their feet in this country, getting more cash in people’s hands, getting people back to work, fixing our infrastructure,” Clyburn told MSNBC.
Several economists have said that massive Democrat spending is contributing to a dramatic increase in the national debt as well as inflation.
“Government spending has been a clear factor behind rising consumer prices, though it’s not the only one,” added an AP Fact Check in March, adding:
Biden last year signed a $1.9 trillion coronavirus relief package known as the American Rescue Plan — and many economists say that caused inflation to run higher than it otherwise would. There are multiple sources for inflation including global supply chain issues, the pandemic, stimulus from the Federal Reserve and, now, the Russian war in Ukraine.
But the problem is that Biden pumped more money into the economy than it could handle.