Crapo: Self-Inflicted Inflation Crisis
Reckless spending and tax hikes will worsen highest inflation in 40 years
Washington, D.C.--With inflation having accelerated under the Biden Administration to 40-year highs, Americans face soaring prices across the board for everyday expenses. Today, U.S. Senator Mike Crapo (R-Idaho), Ranking Member of the Senate Finance Committee, led a news conference with Republican colleagues to highlight inflation’s harmful effects on American households and businesses, and urged colleagues to abandon reckless tax-and-spend proposals that will add more fuel to the inflationary fire.
“Americans are all painfully aware that we now have a 7.5 percent inflation rate,” said Crapo. “This is the highest rate since 1982--the highest rate of inflation in 40 years. These numbers are very clearly a result of the incredible, excessive overspending that is heating up the economy.”
Watch Crapo's remarks here or read below:
“Americans are all painfully aware that we now have a 7.5 percent inflation rate. This is the highest rate since 1982--the highest rate of inflation in 40 years. Producer price inflation is 9.7 percent. These numbers are very clearly a result of the incredible, excessive overspending that is heating up the economy.
“Under the economic policies we’ve seen over the last year:
“It cost families nearly 7 percent more to put food on the table.
“Energy costs skyrocketed by 27 percent. The price of gas exploded by 40 percent. The bill for fuel oil to heat the family home ballooned by over 46 percent. Gas service to keep the stove running in your home increased by almost 24 percent.
“If you are in the market for a car, a new car costs over 12 percent more, and a used one costs almost 41 percent more.
“Moody’s Analytics estimates the average U.S. household is spending an additional $276 a month due to inflation.
“A Penn Wharton study estimates households spent $3,500 in 2021 just to keep up with rising costs.
“Small businesses cite inflation as the biggest challenge they face.
“Workers have lost purchasing power as they watch their wages being eroded and eaten up by, and wages aren’t keeping up with rising costs.
“This stealth tax was exacerbated by unnecessary deficit spending last year, and more reckless spending that is being pushed and pushed and pushed, will only continue to fuel this inflation fire.
“Congress should be working to address the harmful effects of inflation, and taking steps to address our ballooning debt crisis and unsustainable mandatory spending.”
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