For months, Republicans and Conservatives have warned against President Joe Biden’s penchant for spending. Trillion-dollar relief packages and other expenses could have a big impact.
On the other hand, Democrats say such government spending is essential right now, and the country will pull back stronger than ever. This has been a common theme of the Biden administration from Day 1.
But one Biden staffer just admitted that in fact, Republicans have a point.
The bottom line is that all this spending will have an effect on the U.S. economy — the only question is, how big the effect will be, and how long it will last.
Conservative citizens have criticized Biden’s “reckless” spending from the start, and they fear that it will cause prices to soar. Then the cost of living will rise along with it.
On top of that, other critics slam the President for giving taxpayer money to numerous liberal causes, and also sending boatloads of money overseas.
Now, Council of Economic Advisers Chair Cecilia Rouse has admitted that yes, inflation is probably coming.
Council of Economic Advisers chair Cecilia Rouse said on this week’s broadcast of ‘Fox News Sunday’ that they expect to see some ‘transitory inflation’ as America is coming out of the coronavirus pandemic.
Host Chris Wallace wanted to know if all the spending would result in “a new round of overheating the economy and serious inflation.”
It’s a question right-wing politicians and citizens have asked for months now. It just seems impossible that we’d be able to avoid blowback from the trillions of dollars we’ve already spent in 2021.
Typically, Biden’s staff promotes the future health of the country, thanks to the President’s spending.
But Rouse spoke plainly about the possible consequences:
These are very serious concerns, and we know that coming out of an extremely deep recession that there are going to be bumps along the way.
We expect that there is going to be supply chain disruptions. That will cause some transitory increases in prices.
She added that we’re still in the midst of the pandemic, so the difficult times will persist for a while.
Rouse did say they don’t expect “runaway inflation,” and said that we’d see transitory inflation “at the most.” Finally, she said it can only be expected when coming out of a recession.
But: Republicans contend that if we hadn’t shut down the entire economy for so long, and hadn’t spent unnecessary billions, we wouldn’t be facing any inflation.
They’ve also railed against Democrats going way too far in regards to assistance.
For example, Republican lawmakers claim that we’ve allowed millions of people to earn more money – between unemployment and extra aid – sitting home than they ever did at their jobs.
This also would make clawing our way back all the more complicated.
At least now, though, one advisor admits that there’s really no avoiding inflation. She says they’re not worried about “runaway inflation” but that doesn’t mean it can’t happen.
- Council of Economic Advisers Chair Cecilia Rouse admitted during a TV interview that at least some inflation is coming.
- She says America can expect to see “transitory inflation,” but adds that it shouldn’t be “runaway inflation.”
- Republicans argue that the government overspent and continues to overspend. And without this, we wouldn’t face the inflation issue.