In his Monday´s speech at the White House, Biden championed that his infrastructure and family support investment programs contained in his $4.5 trillion domestic spending plan will fund decades of economic growth, increase the workforce and keep prices low.
The current rising prices are due – in his opinion – to pandemic-related supply chain imbalances.The most notable of these is the semiconductor chip shortage that has forced automobile plants across the country to sit idle this spring, cutting into the supply of available cars and driving up the price of existing ones.
Biden´s speech is a sign of the growing concern among Democrats that rising prices will be a potent political cudgel for GOPers to wield against them in next year´s midterm elections, the CNBC portal reported.
If inflation continues apace for the rest of the year, however, it will fuel the Republican case that Biden´s domestic spending agenda is reckless, and that Democrats are trying to pump trillions more government dollars into an already overheated economy.
On top of that, consumer prices rose 5.4% in June versus a year ago, according to Labor Department figures, the highest increase since 2008.
In the opinion of the Secretary of the Treasury Janet Yellen, this situation is transitory, but it will take a few months to disappear, so costs should return to normal in medium term.
A Fox News poll published at the end of June revealed that 83% of those polled said they were concerned about inflation, something that Republican spokesmen say that it favors them because it impacts voters and could help them in their aspirations to rule the country again.
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