Chuck Schumer Argues Spending Trillions Will ‘Ease Inflation Pres­sures’

Senate Minority Leader Chuck Schumer, D-N.Y., talks to reporters following a Democratic strategy meeting at the Capitol in Washington, Tuesday, Feb. 11, 2020. (AP Photo/J. Scott Applewhite)
J. Scott Applewhite/AP Photo

Senate Majority Leader Chuck Schumer (D-NY) will release a report Wednesday that argues spending trillions will “ease inflation pres­sures.”

The report, written by Moody’s chief economist Mark Zandi, claims inflation worries are “overdone,” because “much of the additional fiscal support … is designed to lift the economy’s longer-term growth potential and ease inflation pres­sures,” according to Axios.

“Greater investments in public infrastruc­ture and social programs will lift productivity and labor force growth, and the attention on climate change will help forestall its increas­ingly corrosive economic effects,” the report continues, and the plan’s policies “would direct the benefits of the stronger growth to lower-in­come Americans and address the long-run­ning skewing of the income and wealth distribution.”

Moody’s, which paid a $864 million settlement to federal and state authorities in 2017 for marking risky mortgage securities as safe before the 2008 financial crisis, contradicts an older report from the firm suggesting former President Donald Trump’s immigration and labor reform policies forced down unemployment, pressured companies to raise Americans’ wages and salaries, and even made housing cheaper for young families.

“As the immigrants leave, the already-tight labor market will get tighter, pushing up labor costs as employers struggle to fill the open job positions,” the report said. “Mr. Trump’s immigration policies will thus result in … potentially severe labor shortages, and higher labor costs.”

Schumer appears to be leveraging the second Moody’s report to push a $3.5 trillion Trojan horse package, while the Producer Price Index rose 7.3 percent in June from 12 months earlier, the largest demand since 12-month data was first introduced in 2010. In comparison to May, the index rose one percent. On average during the pre-pandemic Trump administration, the index rose by around 0.2 percent per month.

A recent poll revealed voters in battleground districts are overwhelmingly concerned about inflation and the rising cost of living with 86 percent of the respondents expressing concerns. Fifty percent of the respondents said they were extremely or very worried.

Self-designated socialist Sen. Bernie Sanders (I-VT) is writing the $3.5 trillion Trojan horse package, which includes expanding medicare, global warming initiatives, and suburb displacement with low-income housing, amnesty, subsidized housing,  and subsidized childcare.

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