ALEC on Ed Dean Radio Show: Spending Bill Pours More Fuel on the Inflation Fire
This spending package that is being talked about right now in Washington, DC, the so-called Inflation Reduction Act, would add hundreds of millions of more spending to this situation.
Jonathan Williams, ALEC Chief Economist and Executive Vice President of Policy, is a regular guest on the Ed Dean radio show on WBOB radio in Florida. This week Williams reacted to the July inflation numbers showing the average cost of goods was 8.5% higher in July compared to a year ago. Below are highlights of their conversation.
Ed Dean: Is there anything positive in these inflation numbers?
Jonathan Williams The only positive side is that for those of us out there driving, we’re seeing a little bit of a break in the pump right now. But a lot of people, unfortunately have not been able to afford saving for a vacation and other things that they would do during the summertime. That’s a travesty for parents and families and they have been spending so much on their grocery bills and they’re filling up at the gas station. Prices at the pump are coming down a little because demand is lower. That is not a healthy sign. One other point though, that may not be obvious yet, but I think a lot of people forget, the level of inflatin is still 8.5% above a year ago. So it’s not just zero for this month. But if the Biden administration really believed that we’re at 0% inflation right now, you have to ask yourself, why are they so hell bent on passing the inflation Reduction Act this week in Congress, if inflation is, indeed all under control as they claim?
Ed Dean: Maria Bartiromo from the Fox Business Network is pointing out much of that money in the COVID relief package has not even gone out yet. There are hundreds of billions of dollars that certain states were saved from the COVID package that has not been appropriated. That’s kind of interesting, Jonathan, I didn’t realize that.
Jonathan Williams: There’s tranches of money that’s out there they are waiting to be spent and start circulating in the economy. This spending package that is being talked about right now in Washington, DC, the so-called Inflation Reduction Act, would add hundreds of millions of more spending to this situation. It would really pour fuel on the fire of inflation. So they might be patting themselves on the back right now for the July numbers, but they are absolutely pouring more fuel on the fire with additional federal spending.
To listen to more of the interview click below: