Inflation Soars, and Dems Push for More

KEY TAKEAWAYS

• Democrats’ disastrous big-spending agenda has led to soaring inflation. The Consumer Price Index increased 6.8% over the last year, reaching a high not seen since 1982.
• A CBO estimate of Democrats’ reckless tax and spending spree found that, without the bill’s many budget gimmicks, it would hike the deficit by $3 trillion over 10 years, more than eight times the theoretical score.
• Since Democrats passed their partisan $1.9 trillion spending law in March, inflation has hit a four-decade high, driving a double-digit drop in consumer sentiment. What will be the consequences of another $3 trillion? 

Democrats’ disastrous big-spending agenda has led to soaring inflation, as Republicans – and even liberal economists – warned it would. The Consumer Price Index for November increased 6.8% over the last year, reaching a high not seen since 1982. Since President Biden took office, inflation has risen steeply compared to historic levels. After months of deflecting and dismissing Americans’ everyday struggles, Biden administration officials have finally begun to concede the obvious: rising inflation is an urgent, persistent issue that imposes hardships on Americans.

Soaring Inflation Since Biden Took Office

That has not stopped congressional Democrats from pushing ahead on their reckless tax and spending spree. The House-passed legislation is loaded with budget gimmicks like allowing several of the bill’s most costly provisions to “expire” after a few years. Democrats have no intention of ending these massive expansions of federal dependence, which means a cost estimate of the bill on paper only tells part of the story. An updated CBO estimate of how much the legislation would actually increase the deficit without these gimmicks found it would result in $3 trillion of deficit spending over 10 years, more than eight times the theoretical score.

True Deficit Spending Without Gimmicks

Democrats already pumped out $1.9 trillion in government spending in March, and Americans are living with the consequences: 11 million open jobs; inflation at a four-decade high; and a 13% drop in consumer sentiment over the past year.

Economists – including some on the left who agree with Democrats’ radical policy objectives – have raised alarms that another round of front-loaded, gimmick-obscured spending will further enflame President Biden’s inflation crisis. The White House has been lying about the threat and scrambling to contort its message. Proclamations that lead with the bill’s sky-high price tag and boasts of “bold,” “transformative” spending plans are out. Spin about “easing inflationary pressures” and illusionary supply chain progress is in. In expectation of more bad economic headlines about its bill, the Biden administration released preemptive propaganda with “take-our-word-for-it” promises of future tax hikes and a “trust-us-this-time" inflationary analysis. Still, Democrats refuse to re-evaluate their reckless agenda.

When the Other Shoe Drops

The aftermath of the first $1.9 trillion of Democrats’ “transformational” plans is staggering. What will happen if the other $3 trillion shoe drops?