Gage Skidmore via Wikimedia Commons

Washington, D.C. – Missouri Congressman Blaine Luetkemeyer is taking on the Biden administration over policy moves that have caused higher prices and the return of noticeable inflation.

“Gas, milk, fruit, televisions, furniture, washing machines, car rentals, hotel rooms – what do all of these things have in common? Their prices have gone up under the Biden administration,” Luetkemeyer, the ranking Republican on the House Committee on Small Business wrote in an op-ed published Friday by Fox Business. 

Data published by the U.S. Bureau of Labor Statistics showed prices up 5.4 percent last month over June 2020, the highest jump since the economic difficulties that began when the market for sub-prime home mortgages collapsed in 2008. That’s higher than the interest rate setting U.S. Federal Reserve expected and marks the sixth straight month in which prices have risen.

“While Democrats in Washington bulldoze a path for reckless government spending, small businesses and middle class working American families alike are left to pay the bill,” Luetkemeyer wrote, singling out the damaging impact the newest round of inflation is having on family-owned business.

“Small businesses are the backbone of the United States economy, and they were making huge economic strides before the Biden administration took over. Now, small businesses nationwide are facing the consequences of the Democrats’ massive government spending agenda in all sectors,” he wrote. 

The U.S. says government nearly half the country’s small businesses were forced to increase prices in May, which Luetkemeyer said was “the largest percentage reported in 40 years.”

“From increased gas prices for delivering goods to rising food costs for restaurants, small business owners are bearing the brunt of Democrat-induced inflation,” he continued. “As more American consumers are spending and patronizing small businesses following the COVID pandemic shutdowns, this increased immediate spending has given our economy a bit of a shock. But rather than acknowledge this problem and correct the course, President Biden and Congressional Democrats are doubling down.”

“Make no mistake – inflation is taxation. Prices of the goods you buy go up, meaning the dollars in your pocket are worth less. It then takes more of those hard-earned dollars to purchase these goods. 

“The Democrats’ proposed $3.5 trillion package will severely exacerbate the inflation problem for middle-class families and further crush Main Street U.S.A. 

“Simply put, small businesses cannot afford the inflation tax that comes with the Democrats’ failed economic policies.

“As Republican Leader of the House Small Business Committee, my colleagues and I have worked tirelessly to provide much-needed relief for small businesses across the country as they regain their footing and reopen their doors to local communities. 

“Unfortunately, there is no single COVID relief package that can simply fix inflation – the Democrats must stop their spending spree. As if the pandemic didn’t create enough of an economic burden for American families and workers, they now face an increased cost of living and consumer prices across the board with no end in sight.”

Luetkemeyer’s criticisms are being echoed by economists and others concerned about the effects ongoing inflation will have on the post-pandemic recovery. 

Writing in mid-July for the Carsey School of Public Policy at the University of New Hampshire, Michael Ettlinger and Jordan Hensley observed that “As measured by Real Gross Domestic Product (GDP), 35 states and the District of Columbia have smaller economies, as of the first quarter of this year, than they did before COVID-19, while 14 states have seen a modicum of economic growth. Nationally, GDP remains 0.9 percent lower than it was before the pandemic struck.”

President Biden and others in his administration seem happy to claim credit for the good economic news but are rather cavalier about the impact the bad news is having, saying the spike in inflation is at worst temporary. 

Biden himself recently dismissed the issue, saying his multi-trillion-dollar spending initiatives will “reduce inflation, reduce inflation, reduce inflation.” Some economists and business leaders fear, however, it is that very spending that is driving the hike in prices and that they will not stabilize or return to the levels at which they were at before the pandemic struck any time soon. 

Peter Roff can be reached at RoffColumns AT GMAIL.com. Follow him on Twitter @PeterRoff.


Peter Roff is affiliated with several Washington, D.C. public policy organizations and is a former U.S. News and World Report contributing editor who appears regularly as a commentator on the One America News network. He can be reached by email at [email protected] Follow him on Twitter @PeterRoff.

Subscribe
Notify of
guest
10 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
David Baker
David Baker
1 month ago

Stop all wars. Repeal all trade agreements. Eliminate “Global Climate Change” mandates. Seal our borders. Repeal the Federal Reserve Act and repudiate our debt to that agency. Hold elected officials to Constitutional Limitations. Implement Annual Automatic Budget Reduction Cycles, and quit carting our ruling classes around in opulent, hugely expensive, carbon-spewing jets. Put them on military planes (Preferably C-130s. Snick Snick..) with comfort pallets, and maybe they’ll experience how the One Percenter’s get around.

David Baker
David Baker
1 month ago
Reply to  David Baker

OOOPS. The 99 Percenter’s!

Dan Tyree
Dan Tyree
1 month ago
Reply to  David Baker

And stop foreign aid except for helping out after a natural disaster

David Baker
David Baker
1 month ago
Reply to  Dan Tyree

Actually, we’re the ones who need foreign aid. That’s why Trump told us he was going to make Mexico pay for the border wall. China has also stepped up as a holder of U.S. debt, and it seems there will be no end to our leadership raising the Debt Ceiling. Our government is bankrupting the country, and they have permission from their Useful Idiots to drown us in red ink.

Michael Bluemke
Michael Bluemke
1 month ago

Communist’s acting as democrats from big joey on down!!! This COMMUNIST REGIME, doesn’t care at all about AMERICA AND AMERICANS, NOT ONE SINGLE BIT!!! Nobody take my word for it, all you need do is watch & listen, you’ll hear HYPOCRISY, YOU’LL HEAR THE LIES, THIS IS SO BAD RIGHT NOW!!! But I look towards 2022 and ultimately 2024, fingers crossed, PRAYERS SAID!!!

P W
P W
1 month ago

But all these people supposedly voted for all of this stuff, they wanted inflation and higher unemployment clearly because it did not take an MBA to figure out what all of these policies would do to the country. Free college, free healthcare, illegal aliens pouring over the border, defunding the police,… you name it, these were going to be disastrous policies that would make the rich, richer and the poor, poorer, and yet all these people voted for this, so this is what they deserve. Smart people have planned accordingly, if these people voted to destroy themselves that is their fault, maybe they will finally learn, but I doubt it because they are being taught the opposite of this in schools right now and these are the results that will follow.