As inflation increases at a record pace, President Joe Biden and Democratic leaders are defending their economic plans amidst the Republican claims of government overspending.
Inflation rose by 0.8% during November and 6.8% over the last year, according to the Consumer Price Index reported by the Bureau of Labor Statistics on Dec. 10. It is the highest recorded annual increase in 39 years.
Biden said the increase is a result of economic issues his Build Back Better plan aims to address, a statement released by the White House said.
“Today’s numbers reflect the pressures that economies around the world are facing as we emerge from a global pandemic — prices are rising,” Biden said in his statement. “The challenge of prices underscores the importance that Congress move without delay to pass my Build Back Better plan, which lowers how much families pay for health care, prescription drugs, child care, and more.”
Republican leaders disagreed, claiming that the Biden Administration's policies are to blame.
House Republican Leader Kevin McCarthy criticized the Democrats' economic management.
"A year ago economists predicted a 2% inflation rate, but in less than 12 months of one-party rule in Washington, consumers are instead facing the highest inflation rate in 40 years." McCarthy said in a press release from his office. "We know the solutions we need to stop this expensive trend — stop the massive spending, stop the war on American resources, and stop the government mandates."
Senate Republican Leader Mitch McConnell agreed.
"6.8% inflation is the worst in almost 40 years,” McConnell said in a statement. "The costs of essentials have skyrocketed. Wages have not even come close to keeping pace, so the average American has gotten a pay cut. It is exactly what experts warned Democrats’ reckless spending would cause."
Senate Democratic Leader Chuck Schumer defended the Build Back Better plan in a release issued by Senate Democrats.
"Today’s Consumer Price Index data makes clear: if we want to fight inflation and lower costs, the best thing we can do is to pass Build Back Better" Schumer said.
Forbes reports that the biggest price hikes are represented in gas, shelter, food and new and used automobiles. Supply chain issues are also altering prices, including chip shortages impacting construction of new vehicles. Labor is also a factor according to Forbes, with labor-force participation 1.7% lower than before the COVID-19 pandemic.
