Biden’s FY23 Budget: Spending & Inflation Crisis
WASHINGTON, D.C. – Last week, President Biden released his FY 2023 budget, which deliberately doubles down on the failed policies that have created the worst inflation crisis in 40 years while deliberately assuming the crisis will simply disappear. As confirmed by the Congressional Budget Office, Americans are watching in real time as skyrocketing prices overwhelm their wages. Worsening this crisis, the President’s budget proposes $73 trillion in spending over the next 10 years – the highest sustained spending in American history and 66 percent higher than the last 10 years – which will further fuel inflation.
Adding insult to injury, Biden’s Budget absurdly assumes inflation will average 4.7 percent this year even though today inflation stands at 7.9 percent and has been rising steadily. To meet Biden Budget projections, inflation would have to miraculously drop to just 2 percent immediately and remain there for the next decade.
In 2021, President Biden’s inflation crisis cost American families $3,500. This year, Bloomberg estimates inflation will cost families $5,200. Of that, $2,200 will come from higher food and energy prices, which will continue to hit low-income Americans the hardest.
“Under President Biden, the American people are finding it more difficult and more expensive to make ends meet and provide for their families. The President’s budget keeps the reckless spending going – doubling down on the delusion that the answer to a spending-driven inflation crisis is another $73 trillion in spending. For over a year, the warning signs have been everywhere. It was obvious – including to Democrat economists – that the Biden Administration’s spending agenda would overheat the economy. But Washington Democrats ignored the facts in front of them. They denied inflation existed. They dismissed it as transitory. And now President Biden’s proposed solution is to spend trillions of dollars, throwing more fuel on the inflation fire,” said House Budget Committee Republican Leader Jason Smith (MO-08).
Washington Democrats’ reckless spending ignited the inflation crisis facing the American people:
- The San Francisco Federal Reserve found that the American Rescue Plan ignited inflation, through extended unemployment bonuses and direct stimulus checks.
- Democrats like former Obama economic adviser Larry Summers warned the law “will set off inflationary pressures of a kind we have not seen in a generation.”
- Inflation has increased 8.9% since Joe Biden became president.
- The Producer Price Index reached 10 percent in February – increasing the likelihood American consumers will soon face double-digit inflation.
- The core personal consumption expenditures price index, the Federal Reserve’s preferred measure of inflation, increased 5.4% from a year ago, the largest increase in nearly 40 years.
For more on Biden’s FY23 budget, click here.