President Joe Biden said his plan to fight inflation is to “lower your costs, not your wages,” during his first State of the Union address on Tuesday.
After Biden and his advisers pretended for months that inflation would be “transitory,” it appears he is ready to address the issue. During his State of the Union speech, Biden addressed his plan to fight inflation.
“One way to fight inflation is to drive down wages and make Americans poorer,” Biden said Tuesday evening. “I have a better plan to fight inflation: Lower your costs, not your wages.”
According to Biden, his three-step plan to lower costs in different sectors will address the highest inflation levels our country has seen in over 40 years. Biden said cutting the costs of prescription drugs, energy, and child care are included in his plan to defeat inflation. However, Biden failed to explain how the costs would be lowered or how they would impact inflation rates.
“So that’s my plan. It will grow the economy and lower costs for families,” Biden said.
Outside of lip service, Biden did not appear to address the country’s inflationary crisis meaningfully. Meanwhile, inflation is the most important issue on Americans’ minds, according to recent polls — for a good reason, too. As of January, prices are rising at the fastest annual pace since 1982, according to a key inflationary measure. Additionally, consumer prices are up 7.5 percent compared with January 2021.
As Breitbart News reported:
Inflation only began to accelerate last March after years of coming in below the Fed’s two percent target. The Fed had decided to keep interest rates low although the economy was recovering at a faster than expected rate. What’s more, the Biden administration pushed through billions of dollars of deficit spending in the American Rescue Plan. These combined to fuel demand for goods and services faster than supplies could expand, pushing up prices.
During his speech, Biden also called on Congress to confirm his nominees to the Federal Reserve.
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