JEC Republicans: Inflation Likely Worsens If Congress Keeps Spending
WASHINGTON—Prices today are rising at their fastest pace in decades and American concern about inflation is growing. Yet over a year after the recession officially ended, Congress continues to pursue massive new government spending measures—including a $3.5 trillion budget resolution, the single largest spending package in history.
In new research, Joint Economic Committee Republicans present evidence that rising prices have resulted from both transitory inflation and more lasting inflation caused by government stimulus. If Congress continues to push government spending to new heights, inflation likely worsens.
We urge Congress to consider the inflationary risks of new stimulus. Rising prices are harming American families by reducing their earnings and undercutting their purchasing power. The American people would be better served by policies geared toward returning Americans to work.
The Joint Economic Committee is Congress’s bicameral economic research center and home of the Social Capital Project, led by Ranking Member Mike Lee.