President Joe Biden believes that he’s found the perfect solution to combat the skyrocketing inflation he sparked. According to a speech he gave at the White House about the state of the economy, the best way to reign in runaway price increases is to pass another massive government spending bill.
The White House put the label “Build Back Better” on their combined spending initiative that includes a $1.2 trillion infrastructure plan that carries bipartisan support and another $3.5 trillion budget that Democrats hope to ram through the legislature in coming days without a shred of Republican support. Biden tried to tell the public on Monday that the additional $4.7 trillion expenditures would prevent, rather than exacerbate a situation of runaway inflation.
Biden said that officials should set aside their “views… about the current price increases,” and unite in passing “my Build Back Better Plan,” because “we shook hands on [it].” He argued that the passage of the spending initiative would achieve “lower prices for Americans.”
Biden suggested that infrastructure improvements such as broadband access, bridges, and roads would remove economic “chokepoints,” thereby reducing prices on goods.
Biden said that people who’s “primary concern is… inflation…. should be even more enthusiastic,” adding that America “can’t afford not to” spend trillions of dollars as his plan lays out.
When pressed by reporters during a question and answer session, Biden was dismissive of expert warnings about high inflation. “No serious economist,” argued Biden, is “suggesting unchecked [inflation] is on its way.”
Larry Summers, former treasury secretary, warned back in March that Biden’s $1.9 trillion COVID-19 relief bill was fiscally irresponsible, the worst “macroeconomic policy… [in] the last 40 years.” That bill contained funding for medical aid, state and local governments, and the popular set of appeasement checks for every American.
However, Summers does stand behind certain of the investments contained within the infrastructure spending plan. He claims that certain of those investments are necessary for the country’s future. He said that economic policy should absolutely be shaped around fears of inflation, but said that “it would be tragic” if those fears kept officials from making certain “urgently needed public investments.”
Author: Roland Abbott