11.17.21

Democrats Determined To Ignore Inflation Warnings From Economists And American Families

Contrary To Facially Absurd Claims From The Biden White House That Their Reckless Taxing And Spending Plan Won’t Fuel Inflation, Economists Project It Will Indeed Add To Already High Inflation Over The Next Year, Something That Is Obvious To American Families Feeling The Inflationary Crunch

SENATE REPUBLICAN LEADER MITCH McCONNELL (R-KY): “[T]here is no question what crisis is top of mind for middle-class families. There is no question what is keeping working Americans awake at night. Inflation. The runaway prices and unpredictability that Democrats’ policies have fueled. Ninety percent of Americans told one recent survey they are ‘somewhat’ or ‘extremely’ concerned with inflation. We are a huge and diverse country. It’s hard to get 9 in 10 Americans to agree on almost anything. But less than one year under Democrats’ policies has 90 percent of America worried about inflation. And it’s no wonder. Year-on-year, consumer prices have risen faster than they have in over three decades. Last month marked the fifth month in a row that inflation has topped 5%.... In the past year, buying meat, fish, and eggs has gotten 12% more expensive. A gallon of gas costs the average American $1.31 more than it did a year ago. And heaven forbid anyone having to replace a family car this year – used auto prices are up 26%. Even getting family and friends together for Thanksgiving is a much pricier prospect than it was last year. Turkey, alone, is an extra 25 cents per pound. Factor in all the fixings, and some estimates project a feast next week will run families up to 15% more than last year.” (Sen. McConnell, Remarks, 11/17/2021)

  • LEADER McCONNELL: “It didn’t have to be this way. This inflation spike wasn’t just predictable. It was, in fact, predicted. This past spring, I warned my Democratic colleagues right here, on this floor, that their unbelievably expensive and poorly-targeted spending bill that masqueraded as COVID relief would turn our strong economic recovery into an inflationary mess. Many of my Republican colleagues sent the same warning. But Democrats didn’t have to take our word for it. Even their own favorite liberal economists — like President Clinton’s Treasury Secretary Larry Summers and President Obama’s CEA Chairman Jason Furman — warned that liberal bill might supercharge inflation. Now our Democratic colleagues want to ram through another, even bigger reckless taxing and spending spree that would make inflation even worse. Many of those same liberal economists support this new spending spree because of all the left-wing goodies that are packed into it. But even they largely admit the package would make inflation even worse next year…. President Biden and his party have already brought needless pain on American families with their reckless spending. Ramming through another multi-trillion-dollar partisan wish list would compound the damage. The hardworking men and women of this country cannot afford to be guinea pigs in a socialist experiment where Democrats try to inflate their way out of inflation.” (Sen. McConnell, Remarks, 11/17/2021)

 

Incredibly, White House Press Secretary Jen Psaki Claims, ‘No Economist Out There Is Projecting That This Will Have A Negative Impact On Inflation’

REPORTER: “Why should Americans not be concerned that injecting another $1.75 trillion or more would further raise inflation?”
WHITE HOUSE PRESS SECRETARY JEN PSAKI: “Because no economist out there is projecting that this will have a negative impact on inflation.” (White House Press Briefing, 11/15/2021)

 

In Fact, Many Economists Project Democrats’ Reckless Taxing-And-Spending Spree Will Increase Inflation Next Year And Warn That ‘The Risk Of Fueling More Inflation When It Has Reached Record Highs Outweighs The Potential Benefits Of Passing A Big Spending Bill’

“[M]any researchers, including a forecasting firm that Mr. Biden often cites to support the economic benefits of his proposals, say the bill is structured in a way that could add to inflation next year, before prices have had time to cool off. Some economists and lawmakers worry about the timing, arguing that the risk of fueling more inflation when it has reached record highs outweighs the potential benefits of passing a big spending bill that could help to keep prices in check while addressing other social goals. Prices have picked up by 6.2 percent over the past year, the fastest pace in 31 years and far above the Federal Reserve’s inflation target.” (“The White House Says Its Plans Will Slow Inflation. The Big Question Is: When?,” The New York Times, 11/11/2021)

  • “Many economists say it could create a short-term stimulus because the plan is structured to raise money gradually by taxing wealthier Americans, who are less likely to spend each additional dollar they have, and redistribute it quickly to people who earn less and are more likely to spend newfound cash. Because of the difference in timing between when the government spends money and when it starts to bring in more revenue, the bill is expected to pump money into the economy in its early years.” (“The White House Says Its Plans Will Slow Inflation. The Big Question Is: When?,” The New York Times, 11/11/2021)

STEVEN RATTNER, Former Obama Administration Counselor to the Treasury Secretary: “[I]nflation worries are top of voters’ minds. So the [Biden] administration should come clean with voters about the impact of its spending plans on inflation. Build Back Better can be deemed “paid for” only if one embraces budget gimmicks, like assuming that some of the most important initiatives will be allowed to expire in just a few years. The result: a package that front-loads spending while tax revenues arrive only over a decade. The Committee for a Responsible Federal Budget estimates that the plan would likely add $800 billion or more to the deficit over the next five years, exacerbating inflationary pressures.” (Steven Rattner, Op-Ed, “I Warned the Democrats About Inflation,” The New York Times, 11/16/2021)

Even an analysis by Mark Zandi, chief economist of Moody’s Analytics, and Democrats’ favorite economist, found the implementation of Democrats’ multitrillion dollar taxing and spending bill would increase inflation annual growth from 3.8 to 4.0 in 2022. (“Macroeconomic Consequences of the Infrastructure Investment and Jobs Act & Build Back Better Framework,” Moody’s Analytics, 11/04/2021)

JASON FURMAN, Former Obama Administration Council of Economic Advisors Chairman and Harvard Economist: “It’s more likely a small positive for inflation in 2022…” (“The White House Says Its Plans Will Slow Inflation. The Big Question Is: When?,” The New York Times, 11/11/2021)

ETHAN HARRIS, Head of Global Economics Research at Bank of America: “It will make the labor market even hotter and create even more price pressure.” (“The Rethinking of Bidenomics,” Bloomberg, 10/22/2021)

MICHAEL FEROLI, Chief U.S. Economist for JPMorgan Chase: “Right now, anything that expands aggregate demand is not warranted, not advisable.” (“The Rethinking of Bidenomics,” Bloomberg, 10/22/2021)

MARC GOLDWEIN, Senior Policy Director for Committee for a Responsible Federal Budget: “On net, I expect inflationary pressures. Why? a) $200 billion/year of upfront borrowing - spending comes way in advance of offsets b) offsets won’t temper demand much - taxes on corporations and those w/ $25m+ of income won’t change consumption much c) slow supply policies” (Marc Goldwein, @MarcGoldwein, Twitter, 11/10/2021)

 

Americans Are Telling Pollsters Over And Over That They’re Worried About Inflation, That It’s Made Them Pessimistic About The Economy, And That They Blame President Biden’s Policies

‘Most Americans Are Afraid Of Inflation’

“If you haven’t noticed prices going up, you’re in the minority. Seventy-six percent of U.S. adults said gas prices had gone up ‘a lot,’ and 65 percent said food prices had gone up ‘a lot,’ according to an Economist/YouGov poll conducted Nov. 6-9. One in four Americans said they spent more on groceries in October, compared with September, according to a Morning Consult poll conducted Oct. 29 through Nov. 3. And a Scott Rasmussen national survey conducted Oct. 11-13 found that 77 percent of registered voters had ‘recently experienced sharp increases in the cost of items they would like to buy.’” (“Most Americans Are Afraid Of Inflation,” FiveThirtyEight, 11/12/2021)

  • “Americans are also anticipating prices to continue to rise, especially as we head into the holiday season. In a different Morning Consult poll, which was conducted Oct. 29 through Nov. 1, a majority of Americans anticipated prices for consumer tech, food, travel, toys and jewelry would be higher this year than in previous years, and planned to compensate for the increase by hunting for deals.” (“Most Americans Are Afraid Of Inflation,” FiveThirtyEight, 11/12/2021)
  • “As the holidays approach, consumers have been most concerned about the cost of meat, produce and dairy, according to the first Morning Consult poll. Forty-eight percent of Americans were ‘very concerned’ about the cost of meat, 37 percent about produce and 33 percent about dairy. A plurality of consumers (46 percent) said they ‘often’ compared prices to reduce their grocery costs.” (“Most Americans Are Afraid Of Inflation,” FiveThirtyEight, 11/12/2021)

According to a recent Harris poll, 90% of Americans are either very or somewhat concerned about inflation and the rising prices of goods, products, and services. (“Five Things You Need to Know to Start Your Day,” Bloomberg, 11/16/2021)

An October Reuters/Ipsos poll found “two-thirds of the country, including majorities of Democrats, Republicans and independents, say that ‘inflation is a very big concern for me.’” (“COVID-19 Fading As Dominant Political Issue As Americans Focus On Inflation, Economy: Reuters/Ipsos Poll,” Reuters, 11/04/2021)

“A Fox News poll conducted Oct. 16-19 showed concern about inflation was higher than it’d been for the past four months, with 87 percent of registered voters saying they were ‘very’ or ‘extremely’ concerned about inflation and higher prices.” (“Most Americans Are Afraid Of Inflation,” FiveThirtyEight, 11/12/2021)

‘Americans Are Not Happy About These Price Increases’ And It Shows In Their Opinions On The State Of The Economy

“Americans are not happy about these price increases. In a Daily Kos/Civiqs poll conducted Oct. 30 through Nov. 2, 78 percent of registered voters said they were dissatisfied with the price of gas … and 75 percent said they were dissatisfied with the price of consumer goods like food, clothing and household items. This dissatisfaction about the price of consumer goods was highest among Republicans, at 92 percent, compared with 57 percent of Democrats and 78 percent of independents.” (“Most Americans Are Afraid Of Inflation,” FiveThirtyEight, 11/12/2021)

“Americans’ opinions on the U.S. economy have soured noticeably in the past month, a new poll finds, with nearly half expecting economic conditions to worsen in the next year. Just 35% of Americans now call the national economy good, while 65% call it poor, according to a poll by The Associated Press-NORC Center for Public Affairs Research…. The deterioration in Americans’ economic sentiments comes as the cost of goods is rising nationwide, particularly gas prices …” (“Americans Sour On Economy Amid Inflation Woes: AP-NORC Poll,” The Associated Press, 11/01/2021)

‘Overall, Voters Are More Likely To Blame The Policies Of President Joe Biden’s Administration For Inflation’

“After inflation recently matched a 13-year high, stoking fears across of 1970s-style price increases, voters across the political spectrum are increasingly pessimistic about the economy, per new Morning Consult/Politico polling…. Overall, voters are more likely to blame the policies of President Joe Biden’s administration for inflation, compared to America’s return to pre-pandemic behaviors.” (“Warning Sign for Democrats: Voters Across Parties Expect a Worsening Economy in the Next Year,” Morning Consult, 10/20/2021)

“The Post-ABC poll also showcases Americans’ current pessimism: … 70 percent rate the economy negatively, including 38 percent who say it is in ‘poor’ condition. About half of Americans overall and political independents blame Biden for fast-rising inflation …” (“Biden Approval Hits New Low As Economic Discontent Rises, Post-ABC Poll Finds,” The Washington Post, 11/14/2021)

  • “Biden’s approval rating on the economy has also tumbled and now stands at 39 percent positive and 55 percent negative. That 16-point net negative rating compares with a September poll in which 45 percent said they approved of his handling of the economy and an April poll in which 52 percent approved. The economic rating of Biden’s performance correlates with a gloomy assessment of the economy itself. Last month … inflation hit a 30-year high, and rising prices for food, gasoline and other products appear to be shaping Americans’ perceptions.” (“Biden Approval Hits New Low As Economic Discontent Rises, Post-ABC Poll Finds,” The Washington Post, 11/14/2021)

“Polling captures how voters are thinking about inflation as a political issue. A plurality of registered voters (40 percent) said the Biden administration’s policies were ‘very responsible’ for the inflation, and a majority (62 percent) said the administration’s policies were at least ‘somewhat responsible,’ according to a Politico/Morning Consult poll conducted Oct. 16-18. In a Harvard/Harris poll conducted Oct. 27-28, 56 percent of registered voters said they weren’t confident in the Biden administration’s ability to keep inflation at bay, and 53 percent said the same about the Federal Reserve’s ability.” (“Most Americans Are Afraid Of Inflation,” FiveThirtyEight, 11/12/2021)

 

And Majorities Of Americans Are Saying The Government Should Cut Back On Spending Like The Multitrillion Dollar Spending Spree Democrats In Congress Want To Pass

“In a Harvard/Harris poll conducted Oct. 27-28 … [a] majority (56 percent) said that Congress passing a $1.5 to $2 trillion social spending bill (such as the one they’re currently trying to pass) would lead to more inflation.” (“Most Americans Are Afraid Of Inflation,” FiveThirtyEight, 11/12/2021)

West Virginia Voters Are Even More Emphatic: ‘Nearly 74 Percent Of Voters Also Said [Sen. Joe] Manchin Should Oppose The President’s Build Back Better Plan’

“New survey results show President Joe Biden’s rating is low among West Virginians, while more than half of state residents strongly approve of Gov. Jim Justice’s job performance. Mark Blankenship, of MBE Research, recently conducted an independent poll on political figures in the Mountain State. Biden’s overall approval rating was 32 percent and disapproval rating was 65 percent…. In West Virginia, Blankenship said many feel strongly against the work the president is doing. ‘Almost half of voters, 53 percent, strongly disapprove, so the intensity with which they disapprove is the only real surprising thing,’ he said.” (WV MetroNews, 11/15/2021)

“Nearly 74 percent of voters also said Manchin should oppose the president’s Build Back Better plan.” (WV MetroNews, 11/15/2021)

 

At Least Some Democrats Are Finally Acknowledging Voters’ Frustrations Over Inflation: ‘It’s All I Hear About When I’m At Home,’ ‘I Hear It When I Go To The Grocery Store Or If I Go To The Gas Station,’ ‘A Lot Of Folks Don’t Feel Like Washington Is Doing Anything About That’

“Centrist Sen. Joe Manchin (D-W.Va.) on Tuesday said that he remains worried about inflation and he’s not yet buying the argument from other Democrats that President Biden’s Build Back Better will lower everyday costs. Manchin said he’s hearing complaints about inflation from constituents at home. ‘The cost they see every day. And every day they go to fill up is a dollar and a quarter more a gallon,’ he said of rising gas prices. ‘Three twenty-nine, $3.39.’ ‘A gallon of milk is now $4 in many places. It’s taking a toll. And I hear it when I go to the grocery store or if I go to the gas station. They say, “Are you as mad as I am?” and I say, “Absolutely.”‘” (“Manchin Uncertain Biden Plan Will Address Inflation,” The Hill, 11/16/2021)

SEN. KYRSTEN SINEMA (D-AZ): “I’m very concerned about inflation. It’s all I hear about when I’m at home. Folks are very, very concerned…. The cost is continuing to go up. So to see this kind of record-level inflation, which is the worst we’ve seen in 30 years, so certainly in most of my lifetime, is very concerning. And it is certainly top of mind for Arizonans.” (“Dems Forge Ahead On $1.75T Bill Over Inflation Fears,” Politico, 11/16/2021)

REP. ANGIE CRAIG (D-MN): “I’ll be honest with you: My constituents are frustrated…. Ordinary Americans, they’re worried about filling up the gas tanks. They’re worried about what’s on the shelves at the grocery store and how much it costs at the checkout line. A lot of folks don’t feel like Washington is doing anything about that.” (“Dem Candidates Go All-In On Biden Spending As Inflation Angst Soars,” Politico, 11/16/2021)

REP. ELAINE LURIA (D-VA): “I’m worried about inflation. And I noticed that myself at the gas pump. Prices are going up, and I know that that’s stressful for people, especially around the holidays.” (“Dems Forge Ahead On $1.75T Bill Over Inflation Fears,” Politico, 11/16/2021)

 

Yet Democrat Leaders Are Now Gaslighting Americans That Their Massive Spending Plan Will Magically Lower Inflation

SENATE MAJORITY LEADER CHUCK SCHUMER (D-NY): “It’s very simple: if we want to create more jobs, if we want to fight inflation, if we want to help families lower costs—the best thing we can do is to pass Build Back Better. Let me repeat that: Want to fight inflation? Support Build Back Better!” (Sen. Schumer, Remarks, 11/16/2021)

SEN. CHRIS COONS (D-DE): “Wolf, we have to be mindful of the ways rising costs impact people of all backgrounds and at all levels of our society and economy. But as I just said a core part of the Build Back Better agenda as President Biden crafted it was to impact the costs that working families worry about, week in and week out. Whether those are housing costs, health care costs or education costs. The Build Back Better bill, which at this point would be $1.75 trillion over a decade will have a big impact on those costs.” (CNN’s “The Situation Room with Wolf Blitzer,” 11/16/2021)

REP. HAKEEM JEFFRIES (D-NY), House Democratic Caucus Chair: “The Build Back Better Act is going to deal with these cost-of-living issues in a decisive way. Some might argue in a historically transformational way.” (“Dems Forge Ahead On $1.75T Bill Over Inflation Fears,” Politico, 11/16/2021)

 

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SENATE REPUBLICAN COMMUNICATIONS CENTER

Related Issues: Inflation, Economy