President Joe Biden comments on the April jobs report from the East Room of the White House on May 7, 2021. (Jonathan Ernst / Reuters)
During a live CNN town hall Wednesday night, President Joe Biden claimed that his multi-million dollar spending packages “will reduce inflation.”
In response to the host’s question about whether pumping massive amounts of money into the economy will exacerbate price increases, Biden replied, “No, no, here’s the deal. Moody’s came out today, the Wall Street firm, not a liberal think tank, said that if we pass the other two things that I’m trying to do, we will actually reduce inflation, we will reduce inflation, we will reduce inflation. “
“Because they are going to provide us with good opportunities and jobs for the people, who in fact are going to reinvest that money in all the things we are talking about, lowering prices, not raising prices,” said the president. He said the audience.
Biden tried to explain the recent price increases as a temporary phenomenon related to the resurgence and growth of the economy.
“Prices have gone up now. For example, we are in a position where you are trying to build a house, trying to find two-by-four lumber. Well guess what? People stopped working cutting wood, they stopped doing it because unemployment was very low. Now all of a sudden this need arises because people are coming back and guess what? Instead of paying ten cents, you are paying 20, ”he said.
Biden’s statement at city hall echoes similar comments he made Monday during a state of the economy address at the White House. “My Build Back Better plan will be a force for lower prices for Americans going forward,” he said.
The president suggested that investments in infrastructure will rectify the imbalances between supply and demand that drive up prices in many sectors.
“If your main concern is inflation, you should be even more excited about this plan,” Biden said. “We cannot afford not to make these investments.”
A bipartisan infrastructure deal, a much smaller and less expensive version of Biden’s original proposal, was negotiated at a price of $ 600 billion. A coalition of 22 Democrats and Republicans is finalizing the bill before it goes to a vote to begin debate.
To get funding for Biden’s other legislative priorities, namely climate change programs, healthcare, and child care services, Democrats in Congress followed the backdoor budget reconciliation path that only requires a simple Democratic majority without any Republican support for the bill to advance in the Senate. Senate Democratic budget negotiators recently increased the value of their budget resolution to $ 3.5 trillion. Biden vowed in June that he would not sign the smaller-scale infrastructure pledge unless the Democrat-backed resolution also passed, which could bring spending fully spearheaded by the Biden administration to nearly $ 4.4 trillion.
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