Americans should be ready for inflation. Biden intends to use inflation over two decades to pay for the massive infrastructure bill that he and the Democrat Party are trying to push.
The massive infrastructure plan will spike the inflation rate in the next two decades
The $600 billion infrastructure plan, together with the $3.6 trillion ten-year “reconciliation” plan that Senator Bernie Sanders is trying to set forth, would increase Americans’ total spending by 7% in the next decade.
Lawmakers are concerned about not only the cost of the infrastructure bills in Congress, but the real effect on Americans' day to day lives as inflation is now at its highest point since 2008. @LeaderMcConnell and @RepStefanik are speaking out. @ErikRosalesNews reports. pic.twitter.com/y1W7RzTBto
— EWTN News Nightly (@EWTNNewsNightly) July 21, 2021
This number is reflected in the projected consumers’ price index which is expected to rise as high as 5.4% over the year. This rate is two times higher than the average increase of 2.1% in the last two decades. What’s more startling is the 23.4% hike in house prices since June 2020.
During the onset of the pandemic, former President Trump and Congress under Biden already pumped $4.5 trillion into the U.S. economy; that was in order to deal with the effects that the pandemic brought to the lives of the Americans.
Now, all that new money pumped into circulation has nowhere else to go. This sends the prices spiraling even further than they already have.
Meanwhile, Senate Democrats maintain that a rapid increase in inflation will not happen in the country. Last week, the Senate Democrats promoted a report published by Mark Zandi, Moody’s economist.
In the report, Zandi says that worries the infrastructure plan might spark an undesirably high inflation rate and spiraling economy are exaggerated. The economist claimed that the massive infrastructure bill will support more robust economic growth, instead of inflation.
Democrats insist that the expensive infrastructure bill will be paid by increasing corporate taxes and other things
Although the economist is right about his claims in relation to the infrastructure bill, Biden’s $600 billion bills in ten years will cost $60 billion per year.
Senate Democrats and Sen. Chuck Schumer, on the other hand, insist that the infrastructure bill will not cause a spike in the inflation rate. They claim that the massive spending bills will instead be paid by imposing higher corporate taxes and other things, such as saving up to a half-trillion on prescription drugs.
The bipartisan infrastructure bill would contain about $600 billion in new spending. Most of the attention has focused on the fact that it concentrates on “hard” infrastructure, but the sticking point has been how to pay for this very large investment. https://t.co/ItQxzHWmkZ
— American Action Forum (@AAF) July 21, 2021
Ironically the spike in the inflation rate will, later on, undo the “good” that the Biden administration is trying to do.
A 52-year-old school maintenance worker, John Novak from Wisconsin stated that he is tired of seeing the prices of gasoline get higher and higher; he also informed that there’s a six-month waiting period just to buy a refrigerator.
Novak blames the amount of government aid. He stated that nowadays, everything costs more. The school maintenance worker also added that no one is really making money today, other than if you get money from the government.
He later revealed that while he did get some aid, he would rather have lower prices of goods than receive money from the government.