Price inflation could undermine President Joe Biden’s sweeping infrastructure agenda, but the White House will not admit it.
Consumer prices last month were 5.4% higher than July 2020, reaching the same elevated level as June and the largest spike since 2008. But while the White House focused on how increases were less than expected, the data have left centrist Democrats skittish about their party’s spending priorities and Republicans gleeful about next year’s midterm elections.
Millions of voters are feeling economically squeezed, especially with food and gas, according to former Kansas Republican Rep. Tim Huelskamp.
“If Biden and his Democrat allies continue their government spending binge this fall, I predict they will be blamed for an overheated economy in November of 2022,” the ex-Tea Party Caucus chairman told the Washington Examiner.
Biden conceded Wednesday during an economic speech that middle-class families were “feeling the pinch.” But he painted a rosier picture of the problem before contending his infrastructure frameworks would provide struggling families with more “breathing room.”