White House Press Secretary Jen Psaki got hit with a big old “false” rating on PolitiFact regarding her claims about economists’ views on Democrat President Joe Biden’s spending agenda.
Psaki repeatedly insists that economists are supportive of Biden’s $1.75 trillion Build Back Better monster bill. Last week, for instance, she told reporters a blatant lie by stating that “no economist out there [predicts] this will have a negative impaction inflation.”
Is that statement really true? No, of course, and PolitiFact verified this with an article they published last Thursday. The article reads in fact that “many economists” have expressed concern over the “inflationary pressure” of Biden’s spending plan.
During a November 15 press briefing, a reporter asked Psaki why Americans shouldn’t worry about further inflation as a result of Biden’s BBB bill. Psaki responded by saying that “no economist” projects a negative impact on inflation from the bill. Psaki added that the bill will bolster economic activity and growth, thereby reducing inflation and helping to reduce costs in the long term.
PolitiFact sought out economists to check these claims and found that they overwhelmingly disagreed with Psaki’s claims. Douglas Holz-Eakin, economist and president of the center-right American Action Forum said that the bill’s spending was very “front-loaded,” and that it didn’t appropriately balance spending with tax increases. He warned that such a bill will place “upward pressure on inflation.” Other economists found by PolitiFact echoed his remarks in similar terms.
Bank of America’s head of global economics research, Ethan Harris, warned that the “deficit-financed” bill Biden is preparing will “create even more price pressure” as well as make the problems in the labor market even more acute.
JPMorgan Chase’s chief U.S. economist, Michael Feroli, agreed and told Politifact that Biden’s bill is “not warranted, not advisable… the economy seems to be… close to its capacity constraints.”
According to PolitiFact, inflation caused by massive government spending is “textbook economics.”
Macroeconomics professor John Leahy from the University of Michigan explains that inflation is the product of “too much demand chasing too little supply.” Leahy added that the causality of inflation and government spending is very simple, and even said that if the bill were completely funded through taxes it would still result in inflation.
PolitiFact, in regards to Psaki’s comments on Biden’s Build Back Better Bill, ultimately said this: “We rate the statement False.”
Author: Ryan Hall