Smucker Speaks Out on Rising Inflation, National Debt

Press Release

Rep. Lloyd Smucker (PA-11), a senior member of the House Budget Committee, took to the floor of the House of Representatives to speak out about rising inflation and the growing national debt, which recently eclipsed $30 trillion. Smucker's comments came as the Federal Reserve Board raised the federal funds rate to combat the 40-year high inflation Americans are experiencing; a direct result of the policies of the Biden administration.

Rep. Smucker speaks on the House floor.

Click here to watch Rep. Smucker's complete remarks.

"Spending More to Get Less"

Smucker shared stories about the impact of inflation on constituents in Pennsylvania's 11th Congressional district. Smucker said:

"My constituent Lamar put the impact of inflation in clear terms. He said spends more now but has less. Paul said that he's sadly giving up on his hopes of retirement at this time. Tim said he must choose between gas and groceries every week…"

Smucker continued: "I'm a business owner not an economist, so I can't even say that I have all the answers, but what I can tell you is that I believe that capitalism, freedom, free enterprise have made the United States the most powerful nation in the history of the world and have provided more opportunity than ever before in the history of humankind. And I think returning to those core values can help lead us, will help lead us out of this mess."

"I don't know the next thing Biden will blame inflation on."

Smucker comments on the Biden administration's attempts to avoid being held responsible for the impact of their policies on inflation: "The president blames inflation on COVID-19, supply chain disruptions, Russia's invasion of Ukraine, the big bad oil and gas companies--I don't know what the next thing is that he'll be blaming inflation on… However, those challenges are the same challenges that every other country across the world has faced and they do not explain why inflation in the United States spiked earlier and is much worse than what we are seeing in other countries."

Smucker notes that inflation experienced in America outpaces inflation in other developed countries.

"Inflation accelerated after the American Rescue Plan"

Smucker notes that "the clear difference" between the United States and other nations experiencing inflation was the increase in demand as a result of the trillions of dollars put into the economy by the American Rescue Plan.

"They were warned by economic experts"

The impact of the American Rescue Plan (ARP) on inflation was expected. Smucker shared: "They were warned by economic experts, including some from the Democrat party that this would fan the flames of inflation and force all households to pay more for the necessities they rely on."

Economists from across the spectrum warned about the impacts of ARP including former Clinton administration Treasury Secretary Larry Summers and Marc Goldwein of the Committee for a Responsible Federal Budget noted ARP "put gasoline on the fire."

"Inflation Disproportionately Impacts Lower-income Americans"

While the White House tried to describe inflation as a "high class" problem, Smucker noted that the Penn Warton Budget Model shows us that inflation is most acutely felt by lower-income Americans. "Inflation disproportionately impacts lower-income Americans who have to pay an even higher percentage of their income on necessities like food and transportation," said Smucker.

"Rising Interest Affects the Federal Government"

Rep. Smucker notes that as the Fed is raising interest rates to combat inflation, rising rates also make it more expensive to make interest payments on the nation's $30 trillion national debt. Any dollars spent on paying interest on the nation debt, are dollars that cannot be invested in other priorities. Smucker shares: "Now let's put that in perspective, under the President's plan, we would pay 1.5 times our current Medicare spending, 1.4 times our current defense spending, and 11 times our current veteran's health care spending."

The rising cost of interest payments can also weaken our national security. China holds the second largest amount of America's debt of any foreign nation. China currently holds now owns $1.1 trillion of that debt, the second highest total among foreign sovereign governments, a clear threat to our national security. If current trends continue, that number will increase to $1.7 trillion over the next decade. America would in effect be funding China's military through interest payments.

"We Have to Reduce Deficits, Debt"

Smucker challenges the Biden administration's false claims of reducing the deficits. "The President claims credit for reducing the federal deficit by $1.7 trillion this year due to the expiration of spending in the American Rescue Plan Act…and he says that this reduction demonstrates a newfound commitment to fiscal discipline."

Biden's Fiscal Year 2023 Budget demonstrates that deficits will remain over $1 trillion annually over the next decade, with the deficit growing nearly every year. "That is not fiscal responsibility," said Smucker, "in fact, I call that swamp math."

Smucker continued: "We have to get serious about implementing policies that will drive growth and will result in lower deficits over time, or we will be going down the path of fiscal calamity."

"Despite the challenges that we face now I think hope is not lost. I am optimistic that if we install the right policies…America can once again work for the American people." Smucker concluded.

Source