President Biden on Monday insisted that his massive spending plans aren’t causing price hikes on everything from bacon and bread to gas and electricity, saying inflation is “temporary” and “expected” after the COVID-19 pandemic.
Biden argued that about 60 percent of price increases are caused by “transitory effects” linked to COVID-19, such as shortages of lumber and semiconductors, and aren’t a sign of substantial long-term inflation linked to deficit spending.
“Our experts believe and the data show that most of the price increases we’ve seen were expected and are expected to be temporary. The reality is you can’t flip the global economics light back and not expect this to happen,” Biden said.
Biden also claims that a pair of massive bills that he hopes to ram through Congress this year — costing a combined $4.7 trillion — would actually reduce inflation. At least in theory, the bills would be offset by tax hikes and other new revenue sources,