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Press Release Published: Aug 24, 2022

Cloud and Economic & Consumer Policy Subcommittee Republicans: Biden Administration’s Reckless Spending Policies Have Led to Recession

Seek to understand Biden Administration’s current perception of U.S. economic status

WASHINGTON — Today, Economic and Consumer Policy Subcommittee Ranking Member Michael Cloud (R-Texas) and Republican lawmakers on the panel sent a letter to President Joe Biden raising concern that the Biden Administration’s reckless spending policies have led to a recession of the U.S. economy. The Republican lawmakers are seeking a briefing to better understand the Biden Administration’s characterization of the current economic status in the Unites States. For months the Biden Administration has ignored economists’ warnings of growing inflation and the increased risk of recession caused by reckless spending policies.

“We are writing to you to highlight that your reckless spending policies have led to what has historically been accepted as a recession—until you unilaterally determined otherwise to score political points,” wrote the lawmakers. “On July 28, 2022, the U.S. Gross Domestic Product (GDP) dropped 0.9 percent in the second quarter. This marks two straight quarters of GDP decline as the first quarter declined by 1.6 percent. Every time since 1948 that GDP has fallen for at least two straight quarters, the National Bureau of Economic Research has declared a recession. Yet you and your Administration maintain we are not in a recession and in fact just passed an additional nearly trillion-dollar inflationary spending bill into law.”  

Since President Biden took office, the inflation rate has skyrocketed from 1.4 percent to 8.5 percent in July 2022. Food prices rose 10.9 percent in July compared to July 2021 and 1.1 percent higher than June 2022. The cost of gasoline remained up nearly 44 percent from the prior year, which was 11.2 percent higher than month before. Home gas bills were up 30.5 percent, home electricity bills were up 15.7 percent, eggs were up 38 percent, and milk was up 16.4 percent compared to July 2021. American families continue to struggle to afford basic necessities and there appears to be no relief on the horizon.

“The American people deserve better. We urge you to reconsider your current inflationary spending proposals and focus on delivering actual relief to the American people. In order to better understand your Administration’s characterization of the current economic status of the U.S., please provide a staff level briefing no later than August 31, 2022,” concluded the lawmakers.

Read the letter to President Biden here.