GOP House Budget Committee members will crack down on high inflation rates, and what they call a lack of policies to address them. They urged the Biden administration to reduce the unprecedented level of public spending in past decades, which could have contributed to consumer price hikes.
In a letter addressed to congressional authorities, 15 Republicans warned there is an alarming increase in federal government spending. U.S. Congress will soon have no choice but to raise the debt ceiling, otherwise the nation will quickly reach its borrowing limit.
Signatories want House Speaker Nancy Pelosi, Senate Majority Leader Chuck Schumer, House Minority Leader Kevin McCarthy, and Senate Minority Leader Mitch McConnell to take concrete actions to curb inflation.
“With record amounts of government spending over the past two years accompanied by historic levels of inflation, in addition to the dramatically changed fiscal conditions of the country over the past five decades, it is imperative for Congress to take meaningful steps now to place our country’s finances on a more sustainable and appropriate path,” the letter said.
The Congressional Budget Office reported 2021’s fiscal deficit, the negative difference between what is spent and what comes in from taxes, will be $3 trillion according to Fox News.
At the same time fiscal deficit increases, Democrats predict government policies they introduced in the past few months will require spending totaling more than $60 trillion in the next decade.
“Unchecked government spending is increasing inflation across the economy and harming American families–especially those on low and fixed incomes,” the letter said.
Republicans cited historically implemented debt-ceiling limits are effective tools to control government spending. They also suggest some improvements to this debt ceiling mechanism could further optimize the tool.
Proposed changes include matching the debt ceiling bill with significant federal spending cuts, setting federal spending targets according to the gross domestic product ratio, and stepping up enforcement of previous spending reforms plus the Congressional Budget Act.
Although Democrats are expected to once gain try to raise the debt ceiling, the GOP promises to oppose this measure and even refuse to collaborate in relevant votes. Republicans want a thorough study into exactly how the Biden administration intends to spend taxpayer money before it supports any changes.
Americans are already experiencing a jump in the cost of living due to inflation, which Joe Biden allegedly chose to ignore in his policy making. The president recently acknowledged there is short-term inflation but refuses to admit it is turning into a long-term problem.
At a July 21 town hall meeting in Cincinnati, Biden said “there will be near-term inflation” as the economy continues to recover from its pandemic lows. However, price pressures will ease in the future according a statement.
The Democrat gave no clues as to what his inflationary reduction measures might involve despite having already proposed more public spending.
Expressing disbelief in the president’s words, the signatories insist government spending is a major cause of inflation.
“Based on [the] Congressional Budget Office’s projections demonstrating an unsustainable fiscal path for our country, it is imperative Congress does not forfeit this opportunity to exercise fiscal responsibility and restraint,” the letter said.
Letter signatories include GOP Reps. Lauren Boebert (Colo.), Michael Burgess (Texas), Earl Carter (Ga.), Ben Cline (Va.), Byron Donalds (Fla.), Randy Feenstra (Iowa), Bob Good (Va.), Glenn Grothman (Wis.), Ashley Hanson (Iowa), Chris Jacobs (N.Y.), Trent Kelly (Miss.), Tom McClintock (Calif.), Jay Obernolte (Calif.), Jason Smith (Mo.), and Lloyd Smucker (Pa.).