Portman Columbus Dispatch Op-Ed: 'Liberal wish list' will add fuel to the inflation fire
In a new op-ed for the Columbus Dispatch, Senator Portman argues that the Democrats’ proposed $3.5 trillion spending bill will send inflation soaring and undermine America’s long-term economic growth.
Immediately after taking office, President Biden teamed up with Congressional Democrats to jam through a $1.9 spending bill, leading to the largest price increases in more than a decade and the highest inflation rates in the past 30 years. Portman explains that if Democrats succeed in enacting their reckless $3.5 trillion tax and spending spree, the impact will be far worse. The American people can expect rapidly rising inflation, slower economic growth, and higher taxes.
Excerpts of the op-ed can be found below and the full op-ed can be found here.
'Liberal wish list' will add fuel to the inflation fire
By U.S. Senator Rob Portman
The increased inflation rates the Federal Reserve calls “transitory” show no signs of slowing, and middle-class families are feeling the squeeze.
Consumer prices rose 5.4% in July, the highest in 13 years.
Food prices are up 3.4%, and Americans are paying 42% more for gasoline and used cars than they did just one year ago. The Producer Price Index saw even higher inflation at 7.8%, the highest on record.
The Democrats’ plan to spend another $3.5 trillion on a liberal wish list of social spending priorities will make things worse, further stalling economic growth and leading to even higher rates of inflation than we’ve seen so far.
What makes this proposal even more concerning is Democrats want to pay for it by including the largest tax increases in history. It would increase taxes on American workers, businesses large and small, farmers, manufacturers, and much more. This increased spending combined with job-killing tax increases could lead to stagflation - low growth and high inflation - that we have not seen since the 1970s.
Instead of pursing partisan and divisive tax and spend proposals, I would encourage both parties to take a moment and remember the strong economy we had before COVID-19.
The Democrats’ $1.9 trillion stimulus back in March and the Federal Reserve’s unprecedented monetary policy intervention combined to light the match on inflation. The last thing our economy needs now is the unprecedented tax increases and massive new social spending represented in the Democrats’ budget resolution leading to next month’s reconciliation bill.
At a time when we should be working to slow inflationary pressures, the Democrats’ $3.5 trillion plus tax and spending spree would only add fuel to the fire.