[Congressional Record Volume 168, Number 97 (Tuesday, June 7, 2022)]
[Senate]
[Pages S2797-S2798]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
Inflation
Mr. THUNE. Mr. President, the White House has apparently decided to
spend June focusing on the economy.
President Biden kicked things off with an op-ed in the Wall Street
Journal entitled ``My Plan for Fighting Inflation.''
Before he gets to the actual ``plan,'' though, the President spends
the first half of the op-ed touting his supposed economic successes. As
usual, he takes credit for the economy's recovery from COVID-related
woes, even though the recovery was well underway before he became
President and was a natural result of the economy reopening after COVID
shutdowns.
He touts job creation figures without mentioning the fact that
businesses are struggling to find workers to fill jobs. He touts the
number of new small business applications in 2021 without mentioning
that small business optimism is at its lowest level since April 2020 at
the height of the pandemic shutdowns. And he mentions ``millions of
Americans getting jobs with better pay,'' while leaving out the fact
that inflation continues to outstrip wage growth, meaning that, on
average, Americans are experiencing a de facto pay cut.
In all, he spends multiple paragraphs attempting to convince
Americans that the economy is thriving, which I have to think feels
pretty meaningless to the millions of Americans struggling with massive
increases in the cost of gas, groceries, and other everyday goods.
In fact, a poll released yesterday found that just 27 percent of
Americans believe they have a good chance of improving their standard
of living, and it is no wonder. The President can talk about his
supposed economic achievements all he wants, but that means little to
Americans who have seen their disposable income eaten up by price hikes
or whose raise failed to keep even pace with the increase in the cost
of living.
And, of course, the President completely omits the fact that it was
his economic plans that helped create our current inflation crisis in
the first place. When President Biden took office, inflation was at 1.4
percent, well within the Federal Reserve's target inflation rate of 2
percent. Today, it is at 8.3 percent, near a 40-year high.
And how did we get from there to here? In substantial part, via the
President's so-called American Rescue Plan. Democrats' massive partisan
spending spree flooded the economy with unnecessary government money,
and the
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economy overheated as a result. But that is not something the President
mentions when he talks about fighting inflation.
So what is the President's so-called plan to fight inflation?
Well, after spending half the op-ed touting his supposed economic
successes, the President finally gets to the plan part, and the first
part of his three-part plan involves having someone else address
inflation. Controlling inflation, the President says, is primarily the
job of the Federal Reserve, and he is going to leave them alone to do
that job.
The next part of the President's plan involves things like fixing
broken supply chains and boosting the productive capacity of our
economy over time.
Now, I am a big supporter of improving our supply chains, which is
why I have introduced the Ocean Shipping Reform Act, which, hopefully,
will pass the House of Representatives and head to the President's desk
soon. But given that the President has so far demonstrated little
progress in addressing supply chain challenges, I am not holding my
breath waiting for the White House to take action.
I am also a big fan of boosting the productive capacity of our
economy. My concern is that the President fails to give any examples of
how he might actually do that. He mentions high gas prices, but instead
of talking about ways to address high energy prices by unleashing
American energy production, he pivots to touting his release from the
Strategic Petroleum Reserve, a highly temporary band aid that did next
to nothing to address the cause of high gas prices, except for briefly
causing their rise to what are record highs.
He also claims Congress can help by passing his clean-energy tax
credits and investments--which he says would result in a $500 decrease
in utility bills for American families. First, nothing about the
President's clean-energy tax credits is likely to drive down energy
prices, especially in the near term, and Americans can't afford to
wait.
In fact, for Americans to take advantage of some of these credits,
they would need to spend more money--on an electric car, for example--
which is how the administration suggests Americans deal with these
historic gas prices.
And the President's claim that his energy tax credits and investments
would decrease utility bills for American families by $500 is 100
percent false.
And you don't have to take my word for it. The Washington Post Fact
Checker column gave the President's claim four--four Pinocchios--a
rating that the Post reserves for, and I quote, ``whoppers.''
And if the President has the idea that his tax credits can somehow
magically move the United States to a place that we can abandon gas and
oil overnight, well, he has another thing coming. No matter how much
Democrats might wish it were otherwise, the fact of the matter is that
clean energy technology has simply not advanced to the point where we
can replace all traditional energy resources with renewables. And
pretending--pretending that we don't need gas and oil--or discouraging
American oil and gas production will only result in higher energy
prices for American consumers.
If the President really wanted to reduce gas prices and ``boost the
productive capacity of our economy over time,'' as he said in his op-
ed, he would embrace American energy production, including conventional
energy production.
Instead, he is doing the opposite. He continues to discourage
domestic production of conventional energy sources that Americans rely
on. And the result is likely to be continued high energy prices well
into the future.
Finally, the President turns to the third part of his plan to fight
inflation, and that is reducing the deficit. Unfortunately, it is a
little hard to take the President seriously on this issue. The
President touts a Congressional Budget Office prediction that the
deficit will fall by $1.7 trillion this year.
What the President doesn't mention is that the reason this year's
projected deficit drop looks so substantial is because Democrats
inflated the deficit last year with their American Rescue Plan spending
spree. Of course, the deficit will look lower this year without a
massive $1.9 trillion piece of legislation financed entirely with
deficit spending.
And I am not getting my hopes up about future deficit drops, since
many Democrats still want to use reconciliation rules to force through
another big, party-line Democrat spending bill. This one is $5
trillion. If they come up with a proposal that is anything like their
original Build Back Better proposal, we will undoubtedly be looking at
more deficit spending.
One news outlet had this to say about President Biden's op-ed and his
plan to reduce the deficit:
Is it really a `plan' when the President points fingers?
While the president's op-ed purports to lay out a plan for
addressing inflation, a close read shows that he actually
seems to be pushing the burden off on others . . .
That is a fair assessment. Unfortunately, it is pretty par for the
course for President Biden. He is happy to take credit for positive
economic numbers even when he had nothing to do with them, but when it
comes to taking responsibility for a situation, he is frequently
nowhere to be found.
He won't acknowledge that his own economic proposal, the American
Rescue Plan, helped create our inflation crisis in the first place.
Indeed, he largely ignored the inflation crisis until it started to
become absolutely necessary for him to address it, if he wanted to
survive politically.
And he has displayed a similar lack of ownership of crises on his
watch. The actions he has taken to weaken border security and
immigration enforcement have helped create an unprecedented immigration
crisis on the southern border.
But from the President's attitude you barely even know that there is
a problem, much less one that he has a particular responsibility to
address.
His hostile attitude toward American energy production helped drive
up gas prices and left families struggling--struggling--to fill their
cars. Yet the President is ready to push off responsibility for
conventional energy production to other nations, leaving our Nation
less secure and even more vulnerable to price spikes.
The President closes his op-ed by noting:
The economic policy choices we make today will determine
whether a sustained recovery that benefits all Americans is
possible.
Well, the President is right about that. Unfortunately, it is pretty
clear that the economic policy choices that he is making are wrong.
I yield the floor.
I suggest the absence of a quorum.
The PRESIDING OFFICER (Ms. Rosen). The clerk will call the roll.
The bill clerk proceeded to call the roll.
Mr. TESTER. Madam President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.