[Congressional Record Volume 168, Number 148 (Wednesday, September 14, 2022)]
[Senate]
[Page S4596]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
Inflation
Mr. CORNYN. Madam President, yesterday, new data showed what Texans
have known and felt for months: that inflation simply is not letting
up. Last month, prices were up 8.3 percent from a year ago.
Economist Larry Summers, a well-known former president of Harvard
University and member of Presidential Cabinets, said that this CPI
report, Consumer Price Index report, confirms that the United States
has a serious inflation problem.
Rent is up 6.7 percent. If you go to the grocery store to feed your
family, groceries are 13.5 percent over what they were last year. If
you are a senior citizen suffering through the hot Texas summer and
need your air-conditioner to work overtime, electricity to make that
air-conditioner run is up 16 percent. Of course, that is just since
last August, just a year ago, when we were already battling runaway
inflation.
But here is an even more shocking figure: Since President Biden took
office on January 20, 2021, prices have risen 13 percent. So 13 cents
out of every dollar that you earn--poof--has gone away. You are that
much poorer. Your standard of living has been decreased by 13 percent.
Inflation, of course, far outpaces wage growth, meaning the average
American has effectively been handed a pay cut. A single paycheck
doesn't go nearly as far today as it did a year ago.
This is exactly what was predicted by leading economists when our
Democratic colleagues ran off with the taxpayer credit card at the end
of last year. They abused the rules of the Senate to spend an
additional $2 trillion in the name of COVID relief even though less
than 10 percent of the money was directly related to the pandemic.
I want to differentiate between what we did together on a bipartisan
basis to deal with COVID when we spent nearly $5 trillion on a
bipartisan basis. There is no doubt this was a grave emergency, a
public health emergency, economic emergency. We did what we had to do,
and we got through it. But even after that, our Democratic colleagues
couldn't seem to kick the spending habits and unilaterally spent an
extra $2 trillion. As I said, even though 10 percent of that money was
related to the pandemic, 90 percent, then, was unrelated.
Then the so-called Inflation Reduction Act, which the President was
celebrating yesterday when the stock market fell 1,200 points--this
partisan bill amounts to another $240 billion in unnecessary spending,
while raising taxes at the same time.
As I said, our colleagues ironically call this bill the Inflation
Reduction Act, and the White House chose yesterday--the day that the
latest disappointing inflation figures were released--to celebrate its
passage.
Inflation Reduction Act is false advertising. The Penn Wharton
economic review of the Inflation Reduction Act said there is no
reduction of inflation for at least 2 full years, and, indeed, it may
actually get worse. But we all knew this intuitively, that if you keep
spending this much money, you are basically pouring gasoline on the
inflation fire. It is going to get worse and worse and worse, and
middle-class working families all across this country have gotten hurt
as a result.
Since our Democratic colleagues took control of both Houses of
Congress and the White House, Texans' lives have gotten harder, not
easier. Inflation I have spoken to has skyrocketed, real wages have
fallen, and our economy has fallen into a recession.
Now, this is one of the other curious things about defining terms.
Our Democratic colleagues want to argue about whether two consecutive
quarters of negative GDP are actually a recession or not. Well, they
were when Republicans were in charge, but apparently when Democrats are
in charge, that definition doesn't apply.
Much as they tried but failed to convince the American people that
the Inflation Reduction Act would actually reduce inflation, it didn't,
and it won't anytime soon.
Well, we know that the response to inflation by the Federal Reserve
has been to raise interest rates, and they are projected to raise them
at least three-quarters of 1 percent or 75 basis points, which will
also slow down the economy and hurt job creation. So it looks like even
more pain is coming.