Long before Democrats jammed through their partisan “COVID relief” spending package in March, we were sounding the alarm that their legislation was a liberal wishlist in disguise. And while Republicans’ priorities have always been getting Americans back to work, back to school, and back to health, this bill exposed Democrats’ priorities: funding their pet projects and paying off their political allies at the expense of the American taxpayer.
And now the consequences are being felt across the country.
Republican Leader Kevin McCarthy will be delivering a speech on the House Floor tonight explaining how Democrats’ mismanagement of the economy has caused a spike in inflation, created a labor shortage, and dramatically increased consumer costs.
While forecasters expected the economy to add roughly one million jobs in April, the Department of Labor reported that a mere 266,000 jobs were added. Just as staggering, despite 8.1 million jobs being posted on the last business day of March, hires stayed at 6 million through the end of last month. Less than a third of the way into his first year, President Biden delivered the worst jobs miss in decades.
Republicans have been warning Democrats about the dangers of passing trillion-dollar bills that disincentivize would-be workers by providing hundreds extra in weekly federal unemployment aid, and last month’s jobs report shows exactly why. Walt Worthy, a hotel owner from Washington State, explained the struggle he and so many other business owners are facing, stating, “We are competing against unemployment. All the hard times you hear [about] going on out there and you can’t find people who want to work.”
Unfortunately, the consequences of Biden’s flawed system of governance don’t end there. Under his leadership, the path “back-to-normal” has been burdened not just by difficulty inspiring a return to the workforce — and the monumental debt that will be felt for generations — but by higher consumer costs on everything from groceries to gasoline.
As the economy struggles to rev back up, Americans are seeing dramatically higher prices for goods and services due to rising production costs. Here are just a few examples:
- The Consumer Price Index for all urban consumers rose 4.2 percent over the last twelve months.
- The Consumer Price Index for food at home rose 1.2 percent since last year, while food away from home increased by 3.8 percent.
- Gasoline prices have increased 9.1 percent from the past month, and are up 22.5% from last year.
- The average price of gas is now over $3.00 for the first time since 2014, the last time Biden was in office.
- Crude oil is approaching $66 per barrel — a $12.13 increase since President Biden took office.
Now the concern is whether these higher prices will drive up broader measures of inflation, a fear even prominent Democratic economists like Larry Summers and Jason Furman have echoed in recent days.
This should compel the White House to take action, but it appears the President’s top advisors are more concerned with the political ramifications of the spike in inflation rather than the direct hit consumers are taking to their own budgets. While both West Wing and Treasury officials have decided calling the situation “transitory” is no longer cutting it from a public relations standpoint, they’ve done little in the way of actual economic stewardship to address the situation.
President Biden and his Democrat majority in Congress have spent trillions in just a few months of being in power, and average Americans aren’t seeing benefits. Instead, not only were taxpayers burdened with a massive debt, now they are also being forced to pay more for basic goods and services. So much for the “relief checks” the Administration likes to tout – now Americans are just spending the extra funds to cover for the rise in prices.
Republicans know the policies needed to get our economy thriving again. We did it before when the Tax Cuts and Jobs Act helped deliver the best economy in a generation, and we will do it again when we retake the House.
As our economy trends dangerously towards the uncertain, Democrats must take the opportunity to reflect on the consequences of their reckless policies and join Republicans in getting America back on track.