JOE BIDEN’S INFLATION NIGHTMARE
Inflation has gone up across the board, but prices for some necessities have increased even faster than the national inflation average. Americans are facing huge price increases on many essentials thanks to President Biden’s policies.
- The price of ground beef has increased by 20% under President Biden.
- The price of chicken breast has increased by 29% under President Biden.
- The price of pork has increased by 15% under President Biden.
- The price of potatoes has increased by 31% under President Biden.
- The price of gas has increased by 60% under President Biden.
- The price of bread has increased by 25% under President Biden.
- The price of eggs has increased by 51% under President Biden.
ADDRESSING THE CAUSES OF INFLATION
There are multiple causes of inflation that must be addressed through a comprehensive economic agenda. Looking at leading causes of inflation in the economy it becomes painfully clear that President Biden has done almost everything in his power to increase the prices of everything from food to energy to cars and make the crisis worse.
Unprecedented and Unnecessary Washington Spending: President Biden’s most egregiously inflationary policy is without question his unsustainable and unnecessary spending binge. In 2021, his first year in office, President Biden spent a record-breaking $6.9 trillion dollars, a 77% increase from the $3.8 trillion spent in 2016. Of that amount, $2.7 trillion was borrowed from other countries like China.
Federal spending and deficits drive inflation in a number of ways. First, when the government prints and borrows more money than it takes in from tax revenue, it puts new currency into circulation and reduces the value of the dollar. The more federal dollars in the economy, the less each is worth.
In addition to devaluing the American dollar, runaway spending turns the federal government into a competitor to U.S. consumers for resources and products. The more the government purchases directly or through subsidized social programs, the more producers can raise prices.
Biden’s War on American Energy: One of President Biden’s first orders of business at the White House was to declare war on American-produced energy. On his very first day in office, Biden took executive action to stop all gas and oil production on public land. From that day until now, this President has made it clear that he opposes the production of affordable American energy.
The result of President Biden’s anti-energy policies has been predictably higher costs for American families and more reliance on foreign adversaries. Since Biden took office, electricity has increased by 25% and gas has gone up 60%. Higher prices for energy are passed on to consumers and increase the cost for every product that is grown on a farm, built in a factory, or shipped on a truck.
Flawed Federal Reserve Policy: The Federal Reserve’s dual mandate requires that monetary policy in this country be implemented with two, often contradictory goals in mind. Under the dual mandate, the Fed is required to focus on both “price stability and maximum sustainable employment.”
During the pandemic, the Fed artificially dropped interest rates in order to fulfill their responsibility to promote job growth. Cheaper, more abundant money made it easier for sellers to increase prices and made inflation worse. Now, Chairman Powell is dramatically increasing interest rates to respond to the crisis by making cars and homes more expensive and likely pushing the U.S. economy towards a recession.
These jarring shifts in Federal Reserve monetary policy send shockwaves through the economy and result in a cycle of recessions and inflation. Instead of focusing on jobs and inflation, the Fed should be solely concerned with keeping interest rates stable and fighting inflation. Fostering American jobs should be up to the policies implemented by the President and Congress.
Supply Chain Mismanagement: American businesses both large and small have faced supply chain challenges ranging from high costs of shipping to delivery delays. Unfortunately, American economic policies, red tape, taxes, logistics, and permitting have made it more profitable for businesses to ship goods from overseas than to produce them domestically.
According to U.S. News and World Report, America ranks behind China, India, Vietnam, Malaysia, Mexico, Indonesia, and Brazil when it comes to the best countries to start a new business. Our war on private industry has pushed manufacturing and services industries to other countries and now we are paying the cost through higher prices to ship goods and services back home.
The Pence Administration will create the conditions to bring production back to this country by removing regulatory burdens, enacting pro-growth tax policies, and ensuring access to abundant American energy. We will fight inflation by making America the best place to do business again.
JOE BIDEN’S SPENDING SPREE
After the U.S. deficit increased during the pandemic, Washington should have started the process of responsibly reducing stimulus spending and reining in deficits. Joe Biden did the exact opposite.
President Biden has gone on an unprecedented spending spree over the last two and half years. His unnecessary, irresponsible government spending has fueled inflation across the country.
- March 2021: President Biden pushed through a $1.8 trillion COVID spending bill known as the “American Recovery Plan.” The unnecessary bill came months after the COVID vaccine was released and cases were dropping rapidly. The bill included hundreds of billions in wasteful spending, including $350 billion that went directly to fund record-breaking state budget surpluses.
- November 2021: The President signed a $1.2 trillion infrastructure stimulus bill called the “Infrastructure Investment and Jobs Act.” Despite massive amounts of inflationary federal spending which contributed to rising costs of raw materials and construction, the new bill did nothing to prevent recent rail disasters, fix our broken air traffic control systems, or avert unprecedented flight cancellations.
- August 2022: Democrats controlling Congress and President Biden collude on passage of the ironically named “Inflation Reduction Act.” The legislation included $500 billion in tax breaks, subsidies, and spending for favored manufacturing and green energy industries. Not only did the government handouts increase spending, but they also established the federal government as customers competing for products and driving up costs.
- June 2023: President Biden signed the so-called “Fiscal Responsibility Act” which suspended limitations on government borrowing until 2025. The bill could result in almost $3 trillion in new borrowing but only included $245 billion in spending caps according to CBO.
CUTTING GOVERNMENT SPENDING AND WASTEFUL PROGRAMS
Vice President Pence is already scouring federal budgets to identify areas where spending can be responsibly cut, and wasteful programs eliminated. The following is an initial list of major savings that have been pinpointed for reduction. These simple steps would save taxpayers over $1.2 trillion.
- Repeal President Biden’s unfair student loan forgiveness scheme that punishes Americans who didn’t go to college, saving $400 billion.
- Require federal agencies to eliminate wasteful improper payments from federal programs. Payments to fraudulent beneficiaries cost taxpayers $247 billion in 2022 alone.
- Eliminate the Environmental Protection Agency (EPA) and shift its authorities to other relevant agencies, saving $23.7 billion this year alone and over $250 billion in ten years.
- Immediately freeze non-defense spending as we audit government agencies, saving $160 billion in 2025.
- Fully defund Joe Biden’s IRS Army, saving $70 billion. (The recent budget deal rescinded $1.4 billion from the IRS agent increase.)
- Rescind $66 billion that Biden and Democrats gave to Amtrak in 2021, a for-profit rail company that predicts it will lose $1 billion a year in perpetuity.
- Repeal Biden’s recent handout to Tesla and GM in the form of new subsidies for electric car battery manufacturing, saving $30.6 billion.
- Cut the “Residential Clean Energy Credit,” Biden’s new, green handout for remodeling homes, saving $22 billion.
- Eliminate tax credits for people who purchase electric vehicles – which directly supports Chinese manufacturing – saving $14.2 billion.
- End Elizabeth Warren’s “Consumer Financial Protection Bureau,” saving $3.4 billion.