WASHINGTON — President Joe Biden addressed concerns regarding his economic agenda that could cause inflation to spike with growing concerns about price hikes amid the markets plunging to its worse day in months.
Speaking from the White House, Biden addressed concerns head-on about rising prices in gas, food, and other key areas but said it is only temporary. The President went on to say his administration is doing everything it can to address price increases.
“We also know that as our economy has come roaring back, we’ve seen some price increases. Some folks have raised worries that could be a sign of persistent inflation. But that’s not our view,” Biden said.
“Reality is you can’t flip the global economic light back on and not expect this to happen. As demand returns, there’s going to be global supply chain challenges,” he added said. He pointed to high car prices and supply chain issues with semiconductors, calling it a “real challenge.”
The President began his comments by taking a shot at former President Donald Trump without ever saying his name. Instead, Biden alluded to comments Trump made about the economy under Biden, saying it would “bring the end to capitalism”.
“It turns out capitalism is alive and very well. We’re making serious progress to ensure that it works the way it’s supposed to work: For the good of the American people,” Biden said.
Biden continued to push for his infrastructure proposals to be passed by Congress, saying the investments would help drive down prices and help Americans recover with the U.S. economy bouncing back from the coronavirus pandemic.
“I want to be clear: My administration understands that if we were to experience unchecked inflation over the long term, that would pose a real challenge to our economy,” Biden said. “So while we’re confident that isn’t what we’re seeing today, we’re going to remain vigilant about any response that is needed.”
Biden touted the 3 million new jobs since he took office. He credited the economic recovery to the passing of his $1.9 trillion Covid relief law known as the American Rescue Plan and 160 million Americans becoming fully vaccinated.
The President said his proposals are designed to increase the economy’s capacity and prices will go down over time. This is, in part, a direct effort to flip a GOP argument against his proposals and use it as a counterargument with the midterm elections coming into view next year.
Biden’s remarks come at a critical moment for his administration with the nearly $4 trillion economic agenda up for debate on Capitol Hill. Senate Majority Leader Chuck Schumer has set a deadline for members of Congress to vote on a Democrat-only proposal.
Last month, the economy added 850,000 new jobs after two months of lower growth than experts anticipated. The number of Americans filing for unemployment claims was down to its lowest numbers since the pandemic began in March 2020, another sign of the economy slowly recovering.
“The U.S. is the only developed country in the world where growth projections today are stronger than they were before the pandemic hit,” Biden said.
He added: “This is the best strategy to create millions of jobs and lift up middle-class families, and grow wages and keep prices affordable for the long-term.”