Khanna: Part of Inflation Is ‘Too Much Money’ with Declining Production and ‘Government Spending’

On Thursday’s broadcast of the Fox Business Network’s “Cavuto: Coast to Coast,” Rep. Ro Khanna (D-CA) stated that part of the inflation issue is “too much money chasing production that has gone down,” and “Part of it was the government spending, both under Trump and President Biden, which I still support. Because it helped get us out of a very difficult economic situation.” Khanna also said he’s against further deficit spending right now.

Khanna said, “I mean, we can say that Putin has made it worse. But look, it’s too much money chasing too few goods. And partly it’s a supply chain disruption, partly it’s too much money chasing production that has gone down, and I think the pandemic is to blame. I think it’s much more complex than that, but what I do think we need to do is have far more aggressive government intervention. One idea…President Reagan and President Roosevelt actually had the government buy up, at the low points, food, and then sell it back to Americans at a low price. And that is something President Reagan did with cheese. FDR did it with many goods. I think we need to do something bold like that that’s actually going to bring prices down.”

He later added, “I think we should say it’s complex, as you point out. Part of it was COVID. Part of it is that we offshored too much production in this country and we were too dependent on supply chains. Part of it was the government spending, both under Trump and President Biden, which I still support. Because it helped get us out of a very difficult economic situation.”

Khanna further stated, “Well, I’m certainly not for more right now, deficit spending. Because, if you pay for something, it’s non-inflationary. But I’m not for, at this moment, more deficit spending that would increase excess demand.”

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