GOP report shows inflation hurts low-income Americans the most, blames Democrats for price jumps

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  • Republicans on the Joint Economic Committee warned on Monday that low-income Americans were having a cascading effect of inflation.
  • Utah Republican and ranking member of the committee, Sen. Mike Lee, blamed the Democrats for the massive jump in prices.
  • The GOP report represents the party’s latest attempt to highlight rising prices less than a year before the 2022 midterm election.
  • Democrats argue that the worst since the Covid-19 pandemic is to blame demand and heavy supply chains.

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Republicans on the Joint Economic Committee warned Monday that low-income Americans were facing a major inflationary impact, given the rise in housing, gasoline and food prices.

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GOP cites two Federal Reserve studies that find inflation Reduces lifetime consumption of poor Americans richer than Americans, and that Gas prices are the main reason Inflation has historically had a greater impact on low-income Americans.

The Committee’s Republicans report represents the party’s latest effort to highlight the risks of rising prices less than a year before the key 2022 midterm elections. With 34 seats in the Senate and all 435 seats in the House, the GOP hopes to retake at least one chamber as a check on the Democrats’ current monopoly over Congress and the White House.

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Mike Lee, a Republican from Utah and a ranking member of the committee, blamed Democrats for a wide jump in prices and a drop in Americans’ real wages.

“Democrats’ reckless spending has driven inflation to a three-decade high, and is making life difficult for poor and middle-class Americans,” he said in a statement. “Inflation is eating away at American households’ livelihoods. It’s holding them back even more. Reckless spending must stop.”

The Joint Economic Committee, headed by Representative Don Baer, ​​D-VA, is made up of members from both the Senate and the House who advise the broader Congress on economic policy reform.

Senior economist Jackie Benson, who works and analyzes for the Committee on Republicans, wrote that the current price hike has a major impact on low-income Americans as more modest-income people splurge on groceries and fuel. spend a large part of their earnings. ,

Those two categories saw the fastest pace in the Department of Labor October consumer inflation report.

The Bureau of Labor Statistics reported last week that the consumer price index rose 6.2% in October from a year earlier, the fastest 12-month pace since 1990. The same report showed that grocery prices rose 1% in the past month, while gasoline prices rose 50%. % from the same month a year ago.

While inflation is back under the democratic control of Congress and the White House, its causes and remedies are up for debate.

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  • GOP report shows inflation hurts most low-income Americans, blames Democrats for price jump

Democrats argue that demand and overwhelmed supply chains are to blame for the worst in the aftermath of the COVID-19 pandemic and that inflation was – to an extent – inevitable. After a year of reduced spending, shutting down broad sectors of the economy and ruining travel plans, Democrats say it’s no surprise to see prices rise as Americans demand a return to normalcy .

“When we shut down the economy on 3/2020, it was inevitable that we would have some inflation as things started again,” said Jesse Rothstein, a professor at the University of California, Berkeley and the Department of Labor during the Obama administration. He is a former Chief Economist. , wrote on Wednesday.

“Overall, the cycle has been as light as we had any right to expect – no mass starvation, no depression,” he said on Twitter. “What is a story that could have been better than this?”

Progressives say the combination of a $1 trillion infrastructure package and a $1.75 trillion bill to tackle climate change and better access to child care will stem price increases and encourage more Americans to return to the labor force.

The White House Supply Chain Disruption Task Force, President Joe Biden’s team working to ease logistics problems across the US, said on November 3 that the current Shipping headache underscores importance of law.

“For too long, our country has invested less in roads, railways, ports and projects that promote the movement of goods,” the White House team wrote. “With the Infrastructure Investment and Jobs Act, we can make fundamental changes that have been long overdue for our ports, rail and roads. This is how we build better, government and overcome challenges by bringing workers and businesses closer together. Takes advantage of American ingenuity to deal with. Brought on by a global pandemic.”

Still, Republicans feel that playing inflation down is a winning strategy for 2022 and plan to outlive the harmful effects of rising prices next year. The party already credits that strategy to Republican Glenn Youngkin’s victory over Democratic former Governor Terry McAuliffe in the Virginia gubernatorial election earlier this month.

“We must continue to focus on the failures of the Biden economy,” Rep. Jim Banks, Republican of Indiana and chairman of the Republican Study Committee, Wrote in a memo after Virginia election results, “Our initial focus on runaway inflation and the escalating supply chain crisis is hitting home with voters. We need to work and bring solutions to the table to address their concerns.”

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