An economic adviser to President Joe Biden claimed that more government spending is necessary for the United States to combat the inflation crisis. Cecilia Rouse, chair of the Council of Economic Advisers, made this claim during an interview with Joe Kernen, news anchor for the CNBC program “Squawk Box.”
During the interview, Rouse was asked if she still stands by the White House’s claim that America’s inflation crisis is merely a transitory stage. (Related: Economist: America about to enter next stage of inflation, which will be so much worse.)
Rouse said America’s inflation crisis is connected to the Wuhan coronavirus (COVID-19) pandemic and that the inflation rate will come down as soon as the country’s economic activity returns to pre-pandemic levels.
“It was related to the pandemic as opposed to a kind of inflation in which we have anchored expectations, and we have really entrenched inflation,” she said.
Rouse never mentioned that the current inflation could be due to the fact that the Federal Reserve created over $6 trillion in 2020 to supply the government with currency for COVID checks and Paycheck Protection Program loans during the lockdowns. Exponential government spending gives the Fed an excuse to print more money and destroy the value of dollars.
Far Peak Acquisition Chairman and CEO Tom Farley, who joined Kernen during his interview with Rouse, asked the economic advisor if now is the appropriate time for the Biden administration to push for more spending through the Build Back Better bill.
Build Back Better is Biden’s legislative agenda that aims to push for massive investments in social services, infrastructure and environmental programs. The White House has described this as the largest government spending plan ever proposed since former President Franklin D. Roosevelt’s New Deal.
Rouse said pushing for massive spending now through Build Back Better is a good investment in America’s future economic activity.
“Parts of Build Back Better include addressing costs, such as prescription drugs. It includes making investments to make the transition to clean energy which we know we need to be making as well,” said Rouse. “So that’s not the kind of dollars that is stimulus, it’s investment, and it’s the kind of investments that actually pay for themselves over time. So that’s smart economic policy right now.”
Rouse further claimed that Biden is focused on lowering gas prices while also spending taxpayer dollars on more renewable energy.
Farley, a financial expert himself, interrogated Rouse about the government’s “tone-deaf” approach to the inflationary crisis. Rouse just repeated her claim that more government spending will help bring costs down.
“He’s focused on reducing costs for some of the most important items for Americans,” she said. “Reducing prescription costs, reducing costs for child care, helping people get back to work because they are able to balance responsibilities at home and at work. So these are the kinds of investments we need to make, they spend out over time.”
Watch this clip from Newsmax as political commentator Dick Morris talks about Biden spending “like a mad man.”
This video is from the channel NewsClips on Brighteon.com.
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