This morning, the Labor Department announced inflation rose 6.8% compared to one year ago, the highest increase since 1982. Yet the Senate is continuing to move forward with consideration of a $1.75 trillion spending bill that many experts worry could make inflation even worse.
In interviews with Politico about rising inflation, multiple Senators showed they are out of touch and placing partisan considerations ahead of their constituents’ interests.
- Senator Mark Kelly (AZ): “A lot of stuff in the legislation is to lower costs for families. So, it’s essentially the opposite. We’re trying to address costs.”
- Senator Catherine Cortez Masto (NV): “people are feeling [rising prices]… That’s what the Build Back Better bill is about: it’s about lowering costs.”
- Senator Jeanne Shaheen (NH): “…it’s paid for. It’s just an effort to scare people.”
Contrary to these Senators’ talking points, many economists are raising alarms that the spending bill being considered by the Senate would increase inflationary pressure precisely as prices are rising at a historic pace.
- Douglas Holtz-Eakin: “We know there’s lots of spending in the bill, and that it’s front-loaded. If you cut taxes and increase spending, financed by debt, that will put upward pressure on inflation.”
- Ethan Harris: “It will make the labor market even hotter and create even more price pressure.”
- Michael Feroli: “Right now, anything that expands aggregate demand is not warranted, not advisable… The economy seems to be operating pretty close to its capacity constraints.”
Not to mention, the nonpartisan Congressional Budget Office (CBO) analysis found that the legislation is not paid for, and will add hundreds of billions of dollars to the national deficit.
One Nation has advocated for Senators to abandon consideration of the spending legislation, arguing that it is irresponsible and reckless. This morning, One Nation announced a new $4.2 million advocacy effort calling on Senators to stop the spending as Americans cope with out-of-control inflation.