Gas, milk, fruit, washing machines, car rentals, hotel rooms – you name it, the price of almost everything has gone up since the beginning of the year. Despite the economy largely reopening across the county, Americans are unfortunately facing the consequences of this administration’s massive government spending habit. Inflation is climbing at the fastest rate in 13 years and many people in Washington, D.C. are failing to acknowledge the problem. In fact, they are trying to double down on government spending.
As life goes back to normal and more American consumers are spending and patronizing businesses following the shutdowns, it is not a total surprise that we are experiencing some inflation. All of this spending at once has given our economy a bit of a shock, but rather than acknowledge this problem and correct the course, President Biden and Congressional Democrats are continuing to spend as if the economy was locked at a standstill. Their most recent proposal is a $3.5 trillion package that will raise taxes on over a million small businesses while driving inflation even higher. Increasing the cost of everything you buy means the dollar in your pocket is worth less. Make no mistake – inflation is taxation.
American small businesses who were just getting back on their feet are also really feeling the squeeze. As Republican Leader of the House Small Business Committee, my colleagues and I have worked tirelessly to provide much-needed relief for small businesses across the country as they regain their footing and reopen their doors to local communities. Unfortunately, there is no single COVID relief package that can simply fix inflation – the government must stop its spending spree. The other effect of the massive spending is low workforce participation, which I’ve discuss in prior columns. Small businesses are struggling to keep up with consumer demand and the missing link in the supply chain is workers. While workforce participation has improved in states that have eliminated the unemployment bonus checks, a year of paying people to stay home has resulted in small businesses facing the added worry of a labor shortage. The labor crisis is just another of many issues being caused by handing out cash first and asking questions later.
Inflation isn’t a partisan issue. It affects all Americans and is especially hurtful to the low and middle-income Americans. Every family has to buy groceries and fill up their cars to get their kids to school or go to work. Unfortunately, the never-ending wish list of government handouts will continue to increase the costs of goods and services, all at the expense of the American consumer. I continually explain to my colleagues (and many already know this) that in order for inflation to go down, reckless government spending needs to stop, and we need to get America back to work. We will keep doing everything in our power to make this happen.
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