[Congressional Record Volume 168, Number 114 (Tuesday, July 12, 2022)]
[Senate]
[Pages S3227-S3228]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
The Economy
Mr. BARRASSO. Mr. President, I come to the floor today to talk about
the economic crisis that the American people are living through, caused
by Joe Biden.
The American people have just had the most expensive Fourth of July
of all times. It is interesting what a difference a year and a half
makes. Last July, 6 months into the Biden administration, the White
House was insisting inflation was either nonexistent or transitory. The
White House even bragged that the cost of a July 4 cookout last year
had dropped 16 cents--not 16 percent but 16 cents--from the year
before. Here we are, 1 year later, with 1 year of Democratic control,
and the cost of that same cookout is up not just 16 cents but 16
percent. Hamburgers, hot dogs, potato salad--across the board--
everything is up. This July 4, the only way to save money was to stay
home.
According to one survey, one out of every three Americans changed
their summer travel plans for this summer because of high gas prices.
People are driving less; they can't afford gas. They are shopping less;
they can't afford the food, and they are getting a lot less from their
paychecks.
The New York Times says people--I was astonished by this--are even
using up vacation days so they don't have to drive in to work because
they cannot afford the gas. They are using vacation days so they don't
have to drive because they can't afford the gas. The average American
family is now paying $100 more each and every week just to buy the same
things that they bought a year ago. So just to stay even is $100 more a
week this year than last. Week after week after week, in the Joe Biden
economy, people can afford less and less and less. One study from the
University of Michigan showed the Biden era had already seen the
steepest drop in disposable income since Herbert Hoover.
Who could believe it?
The savings rate right now is the lowest since the great recession of
2009. Household debt is the highest ever. People are trying to borrow
or spend their savings just to keep up and to maintain the sorts of
things they could afford easily last year. Consumer confidence in this
country, right now, is at an alltime low. The concern, of course, is
that the worst may yet be coming. More and more experts say we are
headed toward a recession. A recession is when the economy shrinks for
6 months in a row.
Two weeks ago, the Commerce Department updated their estimate of
economic growth for the first 3 months of the year, and the update said
the economy had grown even less and had shrunk more than they had
thought. The economy shrank more than the Biden Commerce Department
admitted to in their first assessment, but there are already signs all
around the country that the economy is shrinking. No wonder, in a
national poll last week, only 1 in 10 Americans thinks the economy is
heading in the right direction. Inflation plus a recession is called
stagflation. I don't think we have had that since the days of Jimmy
Carter, likely when the Presiding Officer was either a little boy or
hadn't yet been born.
Democrats have run Washington for 17 full months now, and they are
doing absolutely nothing here at home to bring down the pain at the
pump or the pain at the grocery store.
Joe Biden says gas prices will remain high for ``as long as it
takes.'' He says we just have to suffer through it, and he blames
everything today on the war in Ukraine. He won't admit to the fact that
the inflation crisis started 10 months before the war in Ukraine. Gas
prices had already gone up by $1.15 a gallon before Putin's invasion.
The American people get it. They remember all of this. It doesn't
matter what Joe Biden happens to say. Of course, he is off to Saudi
Arabia tomorrow, looking for more oil, when we have plenty of it in the
United States. The American people clearly know who to blame for the
inflation that is causing them pain every single day.
It is interesting to see that even Jimmy Carter's economists blame
Joe Biden and the Democrats in Congress for the inflation that is
hitting the country today.
Last week, the New York Times published an interview with Jimmy
Carter's top economic advisers. They were asked what lessons they had
learned from the miserable failures of the Carter administration. Jimmy
Carter's Secretary of the Treasury, Michael Blumenthal, put the blame
for today's inflation on the spending by Joe Biden and the Democrats.
This is Jimmy Carter's Treasury Secretary pointing his finger at Joe
Biden and the Democrats. Jimmy Carter's Treasury Secretary said that
Democrats need to give up the gimmicks, turn off the money printer, and
stop the reckless spending.
This is at a time when, behind closed doors, Senator Schumer and
others are trying to come up with another gimmick to add more spending
and higher taxes.
This article in the New York Times says:
Mr. Blumenthal urged Mr. Biden . . . to abandon his [Build
Back Better bill]--
I call it ``Build Back Biden.'' He said he should abandon that--
in favor of deficit reduction.
He said:
[F]ighting inflation comes first. . . . [B]y trying to take
half measures . . . you merely prolong the pain.
The American people are tired of the pain that has been imposed upon
them by Joe Biden and the Democrats in this body and across the floor.
Well, he is right. Jimmy Carter's Treasury Secretary is right.
Fighting inflation needs to come first. Yet, for Joe Biden, fighting
inflation has come last or not at all--denial that it even existed,
dismissing it as ``don't worry,'' and continuing today to try to avoid
the reality that he is facing.
You know, the Democrats in this body could learn something from the
Carter administration. After all, Joe Biden has an even lower approval
rating. It is hard to believe. I would have never believed, on the day
Joe Biden was inaugurated, that by the Fourth of July weekend of 2022
that Joe Biden would have earned--fully earned--an approval rating
lower than Jimmy Carter had. Remember, Jimmy Carter lost his reelection
bid to Ronald Reagan.
So far, Democrats seem to have learned nothing. Last March,
Republicans warned the Democrats that their spending and borrowing
would cause inflation. Democrats ignored the warning.
Senator Schumer even said:
I do not think the dangers of inflation . . . in the near
term are very real.
That may have been a New Yorker's view of it, but people around the
country had a clear understanding that inflation was coming, and it
did. It turned out Senator Schumer was wrong, and the dangers were
very, very real for working families.
So the rich liberals in New York and the rich liberals in California
who run the Democratic Party will be just fine. It is the working
families who are trying to pay their bills every day--they are the ones
who are paying the price for these reckless policies of the Democratic
Party.
Democrats remain completely out of touch with American workers. It is
obvious. Last March, all 50 Senate Democrats put an additional $2
trillion on the national debt. The Biden inflation crisis started, and
the fire of inflation started 1 month later.
Last week's New York Times article also quotes a Carter Treasury
official who warned against socialist price controls with regard to
energy. So what did the House Democrats just do? They just voted for
socialist price controls. Now Senate Democrats seem to be eager to do
the same thing.
Democrats are ignoring the warning signs once again. It seems they
refuse
[[Page S3228]]
to learn the lessons of the Carter years. What have the Democrats
learned in the last 18 months--anything? I don't think they have
learned a thing, especially with regard to American energy. Joe Biden
is continuing to restrict American energy, is continuing to give
speeches against American energy, and then is going hat in hand to
Venezuela, to Iran, and now, this week, to Saudi Arabia, saying: Please
produce more energy.
This is the first time in 64 years that there will be no offshore
energy lease sales this year--the first time in 64 years. Joe Biden is
now considering blocking all offshore oil and gas leases for the next 5
years--no jobs for the people, no affordable energy for the folks and
the families. No. He is just now lifting his blockade on onshore oil
and gas leases that has been there since day 1 of his administration.
Why is he doing it now? Well, he is doing it, kicking and screaming,
because the Federal court forced his hand. After 17 months in office,
when President Obama was there, they had held 40 lease sales. Joe
Biden's energy strategy has now sunk us to a new low.
What is he doing now? What is the President's new approach? Because
he wants to just belittle people in energy who make their livelihoods
that way.
I mean, it is astonishing, the President of the United States
tweeting about mom-and-pop gas stations in your neighborhood and mine.
It is hard to believe, but it is true. Last week, the President of the
United States tweeted a demand that gas stations bring down their
prices. If only it were that easy.
You wonder, what does President Biden really understand about the way
the world works and about the lives that people lead?
Prices aren't set by gas stations, and prices aren't set by
Presidential tweets. They are set by supply and demand. It is economics
101. Gas stations aren't the problem. Gas stations would love to bring
down prices overall. They can't do it. If demand is down because people
can't afford to drive, that will lower the prices a bit. Today, the
average is about $4.65 a gallon. On the day Joe Biden came into office,
it was $2.38 a gallon. We are still at almost double the cost of a
gallon of gas today, under Joe Biden and his policies, than we were the
day he took office.
If you want to really lower prices at the pump and get to where we
were on the day that Joe Biden came into office, we need more American
energy. We have it. We have it here in the United States, and Joe Biden
and the Democrats will not let us get it out of the ground.
So what are the Democrats in the Senate doing about these repeated
failures by Joe Biden?
Well, right now, they are, once again, threatening another reckless
tax-and-spending spree. They are planning a repeat of what got us into
this inflation crisis in the first place. It is terrible economics, and
it is not even good politics. So just before the midterm elections, the
Democrats are attempting to pass legislation that is going to make
America's problems even worse.
They are proposing another reckless spending bill, and it is more
reckless than the one last year because inflation is a lot higher now.
Spending even more money is going to make today's prices go even
higher.
According to media's report, the latest version of the Democrat bill
includes more than $100 billion in new taxes. Nobody knows exactly what
is in it. We hear up to a trillion dollars in taxes. Many of these
taxes are going to fall on American energy producers. If you have
higher taxes on energy producers, who do you think is going to end up
paying that? The people who have to use energy, who are the men and
women going to work filling up their cars with gas, trying to take
their kids to school, cutting back on vacations because they can't
afford the gas.
The Secretary of the Treasury says, Well, you don't like the high
price of gas? Buy an electric car.
Easy for him to say. Electric vehicle prices are up because of Joe
Biden's inflation. They are 20 percent higher now than they were a year
ago. How many Americans can go out and afford to buy one of these very
expensive electric vehicles? Very few.
We are talking about a clueless administration, a clueless President,
and a clueless Secretary of Transportation and Secretary of Energy who
have promoted such policies.
Joe Biden should remember that in 2008, Senator Barack Obama said
this:
[Y]ou don't raise taxes in a recession.
This is Senator Barack Obama in 2008, Presidential candidate Barack
Obama in 2008:
[Y]ou don't raise taxes in a recession. The last thing you
want to do is to raise taxes in a recession.
Yet that may be the party platform of the Democrats for this
November.
The Democrats' attacks on American energy have been relentless. They
are obsessed with stopping the use of fossil fuels, absolutely obsessed
and worshipping at the altar of energy that is dependent on the
weather. That is what they are proposing. The Democrats think that that
is the winning sales pitch going into November.
Democrats I talk to privately admit that they expect to be stripped
of power in November, Nancy Pelosi no longer Speaker of the House, her
efforts to make sure that the Republicans are in the majority in the
Senate. Democrats know the clock is running out on them, that they are
not going to be able to do something like reconciliation to force down
the throats of the American people, costly policies, tax increases, and
regulations that the American people would never be in support of.
This is their last hope, their last Hail Mary pass to put into place
policies of the progressives that will help their group but hurt the
country. It is absolutely wrong. It is one final try of the Democrats
to increase spending, increase taxes, and, of course, increase the
debt.
It doesn't seem the Democratic Party nationally or those on the Hill
seem to care about that and the suffering of the American people who
are living through the highest inflation in 40 years. The highest gas
prices of all time until recently, massive debt, massive concerns, and
incompetence--that is what the American people are looking at right
now, and that is why, come November, what I believe, many, many
Members, elected Democrats in the House and Senate, will be heading to
the unemployment line.
I yield the floor.
The PRESIDING OFFICER. The Senator from Hawaii.