I’ve come to the floor today to talk about our nations economy. On Friday we saw new inflation numbers and we found that inflation remains the worst that it’s been in forty years. We also found out that in the first three months of this year the American economy actually shrank. Will, why did it shrink? Well, because of the inflation that is hitting hard, every family in America.
So, now we have a terrible situation with soaring inflation and a stagnant economy, both at the same time. People are paying more and more and they’re getting less and less. Now, the last time this happened, Madam President, was in the 1970s. It’s called stagflation. Back then all the liberal economic experts said it was impossible, you couldn’t have soaring inflation in a stagnant economy, but we did, and now here we are 50 years later, same thing again.
This is hitting American families like a sledgehammer and the people are suffering all across this country. Inflation has been so high for so long, the experts tell us that might lead to a recession. Now, a recession is when the economy shrinks for six months. We’re already halfway there. Joe Biden, the other day, said everything was fine. He said he was not concerned at all about a recession. He said no one is predicting a recession right now. but that’s just not true. Maybe he’s not listening, but people within his own administration are predicting additional dire economic times ahead. Our economy has underperformed projections in four out of the last five quarters since Joe Biden has become president. Joe Biden’s own labor secretary admits a recession is a real likelihood. Last month Deutsche Bank predicted a recession by the end of next year. Three days later the Bank of America told investors inflation shock is worsening, interest rate shock is just beginning, and recession shock is coming. Bank of America went on to say inflation is out of control and inflation causes recessions. Last month, Larry Summers pointed out that the United States has never had the current inflation rate and the current unemployment rate without a recession coming within two years. Larry Summers went on to say, recession in the next couple of years is more likely than not, more likely than not. He said, I expect that is how the consensus will evolve. Well, Larry Summers is right. He’s been right before. He’s been right about inflation. This is economics 101. It’s also American history 101.
High inflation gets, it brings about a change in the Federal Reserve, so they raise interest rates and when they raise interest rates the economy slows down. That’s what we’re seeing. Inflation is worse that its been in 40 years and in March the Federal Reserve raise rates for the first time in four years. That is widely expected to raise rates again very soon. Easy to see where this is all going, Joe Biden’s inflation will soon lead to Joe Biden’s recession. Now, maybe Joe Biden is hoping the stagnation will be transitory, just like he said of inflation for month after month after month after month after months. The American people have seen this before. Unlike Joe Biden, the American people are concerned about inflation and they are concerned about a stagnant economy, and they are concerned about a recession. Currently the president likes to laugh about it.
In the last 12 months we’ve seen the highest inflation ever recorded for household staples, chicken, lunch meat, baby food, hard to get infant formula now, the shortage of that all across the country. The American people are feeling stuck in place. They’re very stressed and they feel the squeeze every day.
One estimate says the typical family will pay $5,200 more this year than they did last year just to buy the same thing. That’s $100 a week, Madam President. This is in addition to the inflation that we suffered last year. Add two together, working families are paying much, much more to buy the same things that they bought two years ago. The truth is painful, and the painful truth is that the average American family is poorer today than they were the day that Joe Biden took office.
People have had to change so much of their lives because of this. They’ve had to change the way they drive. They’ve had to change the way they shop and eat, had to change the way they live. A poll last week found that two out of every three American families have had to cut back on spending because of inflation. Half said they’re struggling to pay rent. Nearly 90% of the American people said they want Congress to bring down inflation. So, what did Democrats had to do about this over the last 15 months? Well, last week the Democrat leader said this, he said he wants to raise taxes. He said it’s the only way to conceivably bring down inflation, raising taxes. Well, that may be the only way the Chuck Schumer knows. I would just say that’s not going to bring down inflation, and it’s not going to help the economy. Prices are up interest rates are going up now Democrats want taxes to go up on top of it.
Energy prices are at record highs. You have to empty your wallet to fill your tank, and yet, Chuck Schumer’s answer is higher tax rates. With a recession ready to hit the country, Democrats want to take more money out of the pockets of hard-working people. Will here’s not a lot left to take I would say to the Majority Leader of the United States Senate and to the President of the United States. It’s really no wonder that two out of every three Americans disapprove of the way the President of the United States is handling the economy. The American people know the Democrats, every one of them, voted in lockstep with Joe Biden for 15 months. They remember every single Democrat in the Senate voted with Joe Biden on his major spending bill. The American people remember every Democrats supported Joe Biden’s economic priorities, which of course hurt the economy. The results have been disastrous for the American people.
We know what we need to do. We need to lower costs. We need to reduce regulations, burdensome regulations. We could get back to American energy, American energy, affordable energy, reliable energy, not going hat in hand to people around the world. We do much better when we’re American energy dominant, selling energy to our friends rather than having to buy it from our enemies.
Madam President, we’ve had the strongest economic times in the United States in my lifetime prior to the pandemic. We know what brought it to us. It was lower taxes, more American energy, limiting regulations. Those are the things that make a difference. Those are the things that Joe Biden has just chosen to ignore. The American people are struggling and suffering and it’s about time they get an administration focused on their needs, not on the needs of an administration which is woefully out of touch with the American people.