WASHINGTON, D.C. – With reports showing that prices are continuing to outpace working families’ wages, dropping consumer confidence, and little major economic growth, Ways and Means Republican Leader Kevin Brady (R-TX) issued the following statement:
“The Biden presidency just keeps hammering families, with prices in July rising the highest in 30 years and outpacing paychecks month after month. No wonder consumer optimism is dropping so alarmingly.
“What’s worse is that President Biden simply dismisses the damage to family budgets. Instead he is pushing Congress to pass trillions of dollars in wasteful spending and tax hikes that will fuel further inflation, kill U.S. jobs, and usher in a new era of dependency on government.”
Background:
A key measure of inflation, the core personal consumption expenditures price index, rose 3.6 percent in July from a year ago the highest level since May 1991. This measure was unchanged from June, which was revised up one-tenth of a percentage point—meaning this level was in place for two months. Including food and energy prices, the index rose in June from 4 percent to 4.2 percent year over year—the highest reading since January 1991.
Additionally, the Bureau of Economic Analysis’s (BEA) revisions to U.S. economic growth in the second quarter showed no meaningful growth.
The University of Michigan Consumer Sentiment Index showed a 13.4 percent decline in July, having dropped by 5.1 percent over the year.
KEY TAKEAWAYS:
Biden has broken his jobs promises.
- Despite the advantages of vaccines and a $1.9 trillion so-called stimulus, President Biden continues to fall short of his jobs promises, including his own favored economic forecast, Moody’s.
- President Biden fell nearly 700,000 jobs short of his jobs promise for the second quarter.
- Federal Reserve Chairman Jerome Powell admitted that the unemployment bonus (extended in President Biden’s $1.9 trillion stimulus) that pays more Americans to stay at home than go to work has contributed to a lackluster jobs recovery.
- Appearing before Ways and Means, Treasury Secretary Janet Yellen also admitted that the unemployment bonus is likely discouraging work, saying that “it’s a significant issue.”
Bidenflation is growing and could go even higher.
- Fox News Survey: “About three-quarters of those with income under $50,000 say both grocery and gas prices are causing them financial hardship — and just over half of those at the $100,000 or more income level say the same is true for them.”
- August Business Leaders Survey: Businesses are struggling to keep up with rising inflation and are feeling less optimistic about the future than previously.
- Even former economic advisers to Democrats have warned their $3.5 trillion tax-and-spend agenda will fuel even higher inflation.
President Biden’s economic agenda spends more to get even less.
- According to Moody’s, President Biden’s $6 trillion plan spends $2.3 million per new job created over 10 years.