New economic numbers released Friday morning show inflation is rising at rates not seen in 39 years.
Shortly after the data was published, President Joe Biden released a statement attempting to spin the situation, deflect responsibility and call form even more spending.
"Today’s numbers reflect the pressures that economies around the world are facing as we emerge from a global pandemic -- prices are rising. But developments in the weeks after these data were collected last month show that price and cost increase are slowing, although not as quickly as we’d like," Biden released in a statement. "Price increases continue to squeeze family budgets. We are making progress on pandemic related challenges to our supply chain which make it more expensive to get goods on shelves, and I expect more progress on that in the weeks ahead."
"Finally, the challenge of prices underscores the importance that Congress move without delay to pass my Build Back Better plan, which lowers how much families pay for health care, prescription drugs, child care, and more. American families should not have to wait to get relief on the cost of prescription drugs like insulin, or see their childcare costs cut by more than half," he continued. "Independent economists have projected that this plan will save a typical family of four $7,400 every year — while easing long-run inflationary pressures on our economy. For anyone who, like me, is concerned about costs facing American families, passing BBB is the most immediate and direct step we can take to deliver. "
It is not true that an additional $2 trillion in government spending would ease inflationary pressures. In fact, it would make the situation much worse.
"Over the next year plus, the [Build Back Better] reconciliation bill will increase inflationary pressures because of its deficit financed spending, transfer payments and tax cuts, the US Chamber of Commerce reports. "Based on the seven budget estimates released through 11/13 by the Congressional Budget Office and the Joint Committee on Taxation, the reconciliation will increase the deficit by a net $122 billion in 2022. This number will grow as the remaining cost estimates are completed. This understates the inflationary impact given that the bill includes at least $153 billion in transfer payments and tax cuts for individuals in 2022. This will fuel greater consumption, pushing inflation even higher."