Sen. Tim Scott argues that Biden's big spending plans are a 'tax on every American family,' as inflation soars
May 25, 2021
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Sen. Tim Scott, R-S.C., warned that the Biden administration’s massive government spending is driving up inflation and causing prices of everyday items like food and gas to soar, saying extended unemployment benefits have stymied the labor market, making it harder to convince Americans to get back to work.
"The Biden’s administration’s approach to throwing tons and tons and tons into the marketplace has led to inflation. And inflation is a tax on every American family," Scott told FOX Business Tuesday.
"Therefore, every American family is paying higher gas prices, milk is up, eggs are up. Your staples are up. That means the good that you think you’re doing by putting more cash into the economy is actually resulting in more inflation," he said. "We’re slowing our own economic recovery because small businesses have said without question that they can’t find people to go back to work."
According to the National Federation of Independent Business, 36% of small business owners are raising prices to fight inflation. And those owners have more jobs open than they can find the labor to fill.
"Which means their economic activity is slowing down at the same time they’re raising prices. That’s a double whammy for future job growth in our country," Scott said.
The American Rescue Plan, which passed in March, pumped up unemployment benefits with $300 per week in federal funding, a move Republicans have said is discouraging those receiving benefits from taking jobs where they might make less. It also offered $1,400 checks to millions of Americans.
And while April’s lackluster Labor Department stats showed just 266,000 new jobs added to the economy, falling sharply below the 1 million projected, the Biden administration has maintained that more people will enter the labor marker once vaccinated and better child care options are available.