Biden insists inflation is ‘expected’ and only ‘temporary’ and says his multi-trillion dollar spending packages will LOWER prices in the long run after a record-breaking spike of 5.4% in June
President Joe Biden on Monday hit back at growing concerns that his massive spending plans were driving up inflation, insisting that price rises were ‘temporary’ and ‘expected’ as the nation tried to bounce back from the pandemic.
Fears of inflation are emerging as a key obstacle for passing his infrastructure and family plans.
And Republicans are using the data to argue that the administration’s tidal wave of spending is making life worse for working families by driving up prices of staples such as milk and gas.
But Biden said the investments would rebuild U.S. supply chains and ease pressure on production that had contributed to rising prices.
‘If we make prudent, multi-year investments in better roads, bridges, transit systems and high speed internet, in a modern resilient electric grid, here’s what will happen: It breaks up the bottlenecks in our economy; goods get to consumers more rapidly and less expensively; small businesses create and innovate much more seamlessly,’ he in a White House address from the State Dining room.
‘These steps will enhance our productivity, raising wages without raising prices.’