Legislative Session
Before Democrats dumped $2 trillion on the economy last year, experts warned that such reckless spending would not just raise prices for working families, but could also trigger a full-on recession. In February of 2021, for example, a…
Before Democrats dumped $2 trillion on the economy last
year, experts warned that such reckless spending would not just raise prices for working families, but could also trigger a full-on recession.
In February of 2021, for example, a prominent economist testified right here on Capitol Hill and said Democrats' runaway spending might back the Federal Reserve into a corner. It might leave the Fed no choice but to sharply raise interest rates. And that would not just slow down our economic recovery, but potentially actually shift it into reverse.
Sound familiar? That is exactly what has happened right before our eyes.
Yesterday, a few days after the far-worse-than-expected inflation report for the month of May, the Fed announced the biggest interest rate hike in 28 years--the biggest interest rate hike in 28 years. And they signal more increases may be on the deck soon. The Fed acted too slowly on the incorrect presumption that inflation would fade away. Now that it hasn't happened, they have to make up for lost time.
The stock markets that carry Americans' retirement savings have been in free fall. The S&P 500 has lost a full one-fifth of its value in just 6 months. Americans' consumer confidence just nose-dived to its lowest point ever recorded--worse than at any point during the 2008 recession, worse than the early panic over COVID.
The percentage of small businessowners who say they are optimistic about the near future has never been this low in the entire 48-year history of that survey. And signs suggest this may be just the beginning of the pain for the American people.
Just 3 months ago, the Fed predicted we would not have to see rising unemployment until 2024. Yesterday, however, they announced they now see unemployment increasing this year, next year, and--and the year after that.
Just between March and May, their official estimate for our country's economic growth in 2022 plummeted--listen to this--by 40 percent. It looks increasingly like Democrats may have driven America toward a full-on recession. They have driven our country toward a full-on recession.
The term ``stagflation'' was invented to describe the most painful economic conditions for workers and families. It means the worst of three worlds at once: High inflation, slow growth, and rising unemployment. Unless something changes--we all hope it does--this appears to be exactly the trajectory on which Democrats' policies have put our country.
The last time we had a unified Republican government, our policies created low inflation, robust growth, and record-low unemployment. Sole Democratic Party control has produced something quite different.
But, unbelievably, the same Washington Democrats who dug this hole seem unwilling to put away their shovels. They want to keep digging. With our economy trending toward a possible recession, some of our colleagues are trying to restart discussions about massive trillion- dollar-plus tax hikes.
It really beggars belief. Democrats spent 2021 trying to respond to inflation with even more--even more--reckless spending, and now they are spending 2022 trying to respond to a looming recession with gigantic tax hikes.
This is utter nonsense. It's unbelievable.
Democrats have quite likely inflated their way into a recession, and now they want to pile on historic tax hikes and make it worse.
In every poll, in every survey, the American people make their views of the Democratic economic policies crystal clear. For the sake of the country, let's hope our colleagues remember the first rule of holes, and stop digging.
Energy
Madam President, on a related matter, tomorrow President Biden will host the Major Economies Forum on Energy and Climate. Meanwhile, working Americans will continue to face the consequences of his disastrous energy and climate policies. While President Biden and his team have declared a holy war on America's domestic production, average gas prices have soared over $5. By August, they are projected to hit $6.20.
Diesel, which literally drives our economy, is now at an all-time high. Natural gas is up 30.2 percent; fuel oil is up 106.7 percent; groceries, which overwhelmingly rely on diesel semis to get to supermarket shelves, are up nearly 12 percent compared to last year.
These eye-popping numbers are the predictable results of Democrats' inflationary policies and specifically their war on affordable American energy.
Well, the American people continue to tell Democrats they are not interested in buying fantastical green boondoggles when they can barely afford the essentials today. According to one recent poll, more than half of Americans are very or extremely concerned about how grocery prices are affecting their household's financial situation. Nearly two- thirds feel that same way about gas prices.
But Washington Democrats are still in staggering disarray over how and even whether to clean up the mess they have made.
Some, like the administration's climate czar, John Kerry, are still in denial. He said recently: ``We absolutely don't''--John Kerry--``We absolutely don't'' need to ramp up oil and gas production. Instead, he insisted:
We have to transition to electric vehicles about 20 times
faster than we are now.
Americans continue to report that just affording gas has become a daily hardship, but the former Senator from Massachusetts says to folks in places like Kentucky: The solution is just buy an expensive electric car.
Now, some administration officials are willing to acknowledge the problem, just not its source. The American people continue to hear about a so-called ``Putin price hike'' even though gas was already up nearly 50 percent--50 percent--since President Biden took office at the time Russia launched the war. Some Members of the President's party seem more clear-eyed. Yesterday, one House Democrat said:
I'm calling on the President to sit down with domestic oil
and gas companies and find a way to lower prices. . . . The
President needs to bring everyone together.
That was a Democrat in the House.
But, unfortunately, the Biden administration still appears to be jaw- droppingly naive about the consequences of its war on affordable domestic energy. As energy prices continued to skyrocket earlier this year, the White House reportedly insisted the production could just be turned back on with the flip of a switch.
According to one analyst:
They thought shale oil production could grow sharply in the
near term--like in a matter of months or quarters . . . They
were shocked to learn that that's like asking for blood from
a stone.
Of course, Democrats' misunderstanding hasn't stopped them from trying to use American energy producers as a scapegoat. Yesterday, the White House press secretary insisted: ``We have done our part . . . `' she said. ``We need [oil companies] to act.''
Really? That doesn't pass the laugh test.
In a letter yesterday, one of America's biggest domestic producers asked the Biden administration for three things: ``Clear and consistent policy that supports U.S. resource development'', ``regular and predictable lease sales'', and ``support for infrastructure such as pipelines.''
Notice that this is precisely a summary of what President Biden hasn't--has not been doing since he took office.
Since day one, the Biden administration has been outright hostile to U.S. resource development, frozen certain new development leases, and canceled a pipeline project that would have expanded efficient energy transport and created American jobs.
The American people are bracing for a very pricey summer, from the gas pump to the grocery store. And they know exactly who to blame.