President Joe Biden claimed Friday that rising inflation is not caused by the federal government spending more money.
“We’re on track right now to be the first president in history to lower the deficit by over $1 trillion in one year,” the president said at the House Democratic Caucus Issues Conference. “I’m sick of this stuff. We have to talk about it because the American people think the reason for inflation is government spending more money. Simply not true. I don’t think we need any lectures from our friends on the other side about fiscal responsibility, for God sake.”
Inflation soared to new four-decade record high levels on Thursday with the Consumer Price Index (CPI) rising 0.8% in February, bringing the key inflation indicator’s year-over-year increase to 7.9%.
The Biden administration has dubbed the new inflation levels “Putin Price Hike” to pin the increase on Russian President Vladimir Putin waging war on Ukraine. (RELATED: ‘Are You Guys Just Going To Start Blaming Putin For Everything?’: Doocy Presses Psaki On Inflation And Soaring Gas Prices)
During the speech, Biden touted the passage of the $1.9 trillion American Rescue Plan in his first 50 days in office that provided hundreds of billions of dollars to schools and small businesses, plus $1,400 checks to Americans during the COVID-19 pandemic. The legislation is expected to raise the national debt by $3.8 trillion by 2031, according to the Committee for a Responsible Federal Budget.
The president signed the bipartisan $1.2 trillion infrastructure bill into law on Nov. 15, which the Congressional Budget Office (CBO) estimated would add $256 billion to the nation’s debt over 10 years.
The president had pushed, unsuccessfully, to pass the $1.75 trillion Build Back Better plan that included provisions to provide a $273 billion tax credit for daycare and early childhood education, and a “social safety net” provision to add a child tax credit and expand Obamacare. A CBO analysis found the legislation would add $367 billion to the national deficit.
Republican Louisiana Sen. John Kennedy warned Build Back Better, if passed, will lead to 20% inflation in a Feb. 10 interview on “The Faulkner Focus.” Democratic West Virginia Sen. Joe Manchin cited inflation as reasoning for not backing the president’s big spending bills.
“As inflation and our $30 trillion in national debt continue a historic climb, only in Washington, D.C. do people seem to think that spending trillions more of taxpayers’ money will cure our problems, let alone inflation,” Manchin said in a Feb. 10 statement.