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Ending Inflation

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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.

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. 

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.