Majority Whip Jim Clyburn is now admitting that not only has his party’s spending spree contributed to inflation but that Democratic legislators were aware of the implications and still pushed through with it regardless.
“When we set up this restoration plan, we all anticipated this precise outcome. Increases in spending are usually met with higher prices because of the natural tendency of an economy to absorb and distribute additional funds, “Clyburn stated when being interviewed by NBC.
Price increases have been soaring and show no signs of slowing down, according to data issued only last week on inflation.
Democratic lawmakers in August pushed through a bill with a misleading name—the “Inflation Reduction Act”—without support from any Republicans. Last year, Democrats approved the American Rescue Plan without the help of Republicans.
U.S. economic growth slowed to a level that qualified it as a recession in July, and Bloomberg projects the worst is still to come.
“This most recent model from Bloomberg Economics is more pessimistic. It predicts a full year of economic contraction, “research shows. “Bloomberg Economics showed that the poor forecast was caused by a widespread decline in the economic and financial variables used as inputs to the model. Up from a 65% chance earlier, it now says a recession will happen within the next 12 months.”