President Joe Biden argued that multitrillion-dollar social spending bills would help Americans cope with rising living expenses.
Since the beginning of 2021, inflation has skyrocketed from 1.4% to 5.4%, pinching families attempting to pay for gasoline, food, and other essentials. Though wages are increasing, price levels are increasing faster — causing households to lose purchasing power.
During remarks about the economy on Friday, Biden acknowledged that Americans are dealing with inflationary pressure.
This recovery is faster, stronger, and fairer, and wider than almost anyone could have predicted. That’s what the numbers say. But we want to make sure that people continue to feel it in their lives, in their bank accounts, in their hopes and expectations for a tomorrow that’s better than today. That’s what this is all about: making sure our recovery is fully felt.
Biden pointed to multiple solutions: diminishing COVID-19 levels by vaccinating children and enacting his controversial vaccine mandate for large employers, and passing his multitrillion-dollar “Build Back Better” agenda.
I want to say very clearly: If your number one issue is the cost of living, the number one priority should be seeing Congress pass these bills. Seventeen Nobel Prize winners in economics have said — spontaneously wrote to me, together, and said this will lower inflationary pressure on the economy when we pass my bills. A new analysis from the Wall Street firm of Moody’s Analytics found that it will ease the financial burden of inflation for middle-class families.
Put another way: These will — these bills will provide families with, as my dad used to say, “just a little more breathing room.” That’s because the Build Back Better framework lowers your bills for healthcare, childcare, prescription drugs, and preschool. And families get a tax cut. That’s how you end some of the anxiety people are feeling about the economy. That’s how we give people some breathing room.
In the middle of the night on Friday, thirteen House Republicans helped Democrats pass a $1.2 trillion infrastructure bill. Lawmakers are presently considering a $1.75 trillion bill that expands federal healthcare and education programs.
“How can I in good conscience vote for a bill that proposes massive expansion to social programs when vital programs like Social Security and Medicare faces insolvency and benefits could start being reduced as soon as 2026 in Medicare and 2033 in Social Security? How does that make sense?” Sen. Joe Manchin (D-WV) argued. “And I don’t think it does. Meanwhile, elected leaders continue to ignore exploding inflation, that our national debt continues to grow and interest payments on the debt will start to rapidly increase when the Fed has to start raising interest rates to try to slow down this runaway inflation.”
Shortly after Manchin’s letter, the Federal Reserve began to roll back its monthly asset purchases — although policymakers left the central bank’s near-zero interest rate target intact.
“In light of the substantial further progress the economy has made toward the Committee’s goals since last December, the Committee decided to begin reducing the monthly pace of its net asset purchases by $10 billion for Treasury securities and $5 billion for agency mortgage-backed securities,” said the Federal Open Market Committee in a statement.