WASHINGTON-Today, Republicans on the Oversight and Reform Committee led by Ranking Member James Comer (R-Ky.) called on National Economic Council Director Brian Deese to provide answers about how the Biden Administration plans to fix its self-made inflation crisis. The Biden Administration’s economic policies have disproportionately impacted middle class Americans, especially those hit hardest by Democrat lockdowns.
“The exponential rise in inflation since the Biden Administration took office shows the clear consequences of massive deficit spending and the fallout from installing an extreme left-wing agenda," wrote the Republicans. “The Biden Administration has pushed trillions of dollars of taxpayer money out the door with little consideration of the adverse consequences … The obvious consequence of reckless government spending is inflation."
Since January, President Biden and Congressional Democrats have rushed trillions of dollars out the door and propose to spend trillions more under the guise of infrastructure and COVID-19 relief. As a result, in April inflation increased at its fastest pace in more than a decade. Over the past year, food is up 3.5 percent, gas is up 22 percent, lumber is up 250 percent, housing is up 11 percent, and new cars are up 9 percent.
The Oversight Republican lawmakers concluded, “Inflation is a regressive tax on hard-working Americans. Those families hardest hit by the burdensome Democrat COVID-19 lockdowns are now the ones hardest hit by the Biden Administration’s harmful economic policies." In their letter, the Republican lawmakers request any and all information from the Biden Administration relating to their plans to combat inflation before the crisis gets further out of hand.and below.
June 2, 2021
Mr. Brian Deese
National Economic Council
1600 Pennsylvania Ave. N.W.
Washington, DC 20500
Dear Director Deese:
We write today to request the Biden Administration’s plans to combat the burgeoning inflation crisis. The exponential rise in inflation since the Biden Administration took office shows the clear consequences of massive deficit spending and the fallout from installing an extreme left-wing agenda. In exchange for capitulating to the socialist wing of the Democrat party, the Biden Administration is harming the American people; they deserve better.
Starting Inauguration Day, President Biden abandoned his campaign promise of bipartisanship. He has pushed trillions of dollars of taxpayer money out the door with little consideration of the adverse consequences. Former Democrat Treasury Secretary Lawrence Summers said it best, “[t]he inflation risk is real." Thus far, the Biden Administration has proposed spending about $6 trillion, equal to more than 20 percent of total U.S. national debt accumulated over the past 250 years. This money is poorly veiled as COVID-19 relief and infrastructure, but in reality only nine percent of the American Rescue Plan went directly to COVID-19 relief and only seven percent of the American Jobs Plan would go directly to rebuilding America’s roads, ports, and bridges. The rest is simple partisan politics.
The obvious consequence of reckless government spending is inflation. The price of gasoline, used cars, and food are all surging. In April, inflation increased at its fastest pace in more than a decade. Over the past year, food is up 3.5 percent, gas is up 22 percent, lumber is up 250 percent, housing is up 11 percent, and new cars are up 9 percenta 68-year high. These increases are passed directly to the American consumer. According to the Wall Street Journal, in April of this year prices increased by the greatest amount since 2008. When asked if rising prices would cause the Biden Administration to reconsider their inflationary agenda, the White House said, “[n]ot at all." The Biden Administration appears to be content with hurting working Americans’ bottom line.
Inflation is a regressive tax on hard-working Americans. Those families hardest hit by the burdensome Democrat COVID-19 lockdowns are now the ones hardest hit by the Biden Administration’s harmful economic policies. Real average hourly earnings decreased 3.7 percent since 2020. This hurts low to moderate income households the most. As costs go up and wages go down, the buying power for the average American decreases. America is on pace to return to 1970s stagflation. The way out of this crisis is not Democrat tax and spend policies.
To better understand the Biden Administration’s approach to fighting inflation, we request the following documents and information, for the period between Jan. 20, 2021 and the present, as soon as possible, but no later than June 16, 2021:
1. All documents and communications related to the Biden Administration’s strategy to reduce inflation and reduce consumer prices.
2. All documents and communications between and among the National Economic Council regarding inflation and the rising Consumer Price Index.
3. All documents and communications regarding inflation and the rising Consumer Price Index between the National Economic Council and the Departments of Treasury, Labor, and Commerce.
4. All economic and inflation projections created by the National Economic Council or elsewhere in the Biden Administration.
The Committee on Oversight and Reform is the principal oversight committee of the U.S. House of Representatives and has broad authority to investigate “any matter" at “any time" under House Rule X. Thank you in advance for your cooperation with this inquiry.
Sincerely,
James Comer, Ranking Member, Committee on Oversight and Reform
Jody Hice, Ranking Member, Subcommittee on Government Operations
Glenn S. Grothman, Ranking Member, Subcommittee on National Security
Michael Cloud, Ranking Member, Subcommittee on Economic and Consumer Policy
Ralph Norman, Ranking Member, Subcommittee on Environment
Pete Sessions, Ranking Member Subcommittee on Civil Rights and Civil Liberties
Jim Jordan
Paul A. Gosar, D.D.S.
Virginia A. Foxx
Bob Gibbs
Clay Higgins
Fred Keller
Andy Biggs
Andrew S. Clyde
Nancy Mace
Scott Franklin
Jake LaTurner
Pat Fallon
Yvette Herrell
Byron Donalds
