{"id":1971980,"date":"2023-07-13T13:33:02","date_gmt":"2023-07-13T17:33:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fact-check-biden-admin-says-its-stimulus-spending-didnt-spike-inflation\/"},"modified":"2023-07-13T13:34:40","modified_gmt":"2023-07-13T17:34:40","slug":"fact-check-biden-admin-says-its-stimulus-spending-didnt-spike-inflation","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fact-check-biden-admin-says-its-stimulus-spending-didnt-spike-inflation\/","title":{"rendered":"Biden administration denies causing inflation with stimulus spending."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ffact-check-biden-admin-says-its-stimulus-spending-didnt-spike-inflation%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1971980&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div>\n<h2>Verdict: Biden&#8217;s American Rescue Plan and Inflation<\/h2>\n<\/div>\n<div>\n<p><strong>Claim:<\/strong> The Biden administration&#8217;s $1.<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/kudlow-trump-was-a-brilliant-consequential-president\/\" title=\"Kudlow: Trump Was a \u2018Brilliant, Consequential\u2019 President\">9 trillion stimulus package<\/a> was not the &#8220;real cause&#8221; of inflation, as prices in the United States did not spike &#8220;higher than anyone else.&#8221;<\/p>\n<p><strong>Who said it:<\/strong> Heather Boushey, an economic adviser to President Joe Biden, during a <a href=\"https:\/\/www.cnbc.com\/video\/2023\/07\/10\/heather-boushey-u-s-has-seen-stronger-growth-that-other-g7-nations.html\" target=\"_blank\" rel=\"noopener\">Monday sit-down<\/a> with CNBC. Boushey argued that Biden&#8217;s American Rescue Plan couldn&#8217;t have been the &#8220;real cause&#8221; of inflation because prices in the United States did not rise higher than &#8220;other countries that did not have the same policies.&#8221; Instead, Boushey said, the &#8220;global pandemic&#8221; caused equal inflation in the United States and abroad.<\/p>\n<p><strong>Why it matters:<\/strong> Sky-high inflation meant the average U.S. household in 2022 had to spend an extra $11,500 to maintain the same standard of living, according to an <a href=\"https:\/\/www.wdbj7.com\/2022\/09\/20\/inflation-could-cost-your-family-an-extra-11500-this-year\/\" target=\"_blank\" rel=\"noopener\">estimate<\/a>. Biden&#8217;s reelection chances in 2024 will in large part hinge on the president&#8217;s ability to convince voters that the American economy is nonetheless thriving\u2014or at least that the nation&#8217;s economic woes are not the administration&#8217;s fault. Just one in three U.S. adults approve of Biden&#8217;s handling of the economy, according to an Associated Press <a href=\"https:\/\/apnews.com\/article\/biden-poll-economy-survey-jobs-inflation-b3c77cb208f96f9b039cf48cbc4fb67b\" target=\"_blank\" rel=\"noopener\">poll<\/a> published in June.<\/p>\n<p><strong>Context:<\/strong> Biden and his top officials have long balked at Republican criticisms that American Rescue Plan spending caused consumer prices to rise. Instead, they argue, corporate greed and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fact-check-biden-admin-says-its-stimulus-spending-didnt-spike-inflation\/\" title=\"Biden administration denies causing inflation with stimulus spending.\">pandemic-driven supply chain disruptions<\/a> were the &#8220;real&#8221; catalysts. After Democrats passed the plan in March 2021, Biden repeatedly dismissed claims that the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/this-study-shows-how-bidens-stimulus-contributed-to-inflation\/\" title=\"This Study Shows How Biden\u2019s Stimulus Contributed To Inflation\">stimulus spending raised consumer prices<\/a>. &#8220;There&#8217;s nobody suggesting there&#8217;s unchecked inflation on the way\u2014no serious economist,&#8221; Biden <a href=\"https:\/\/www.whitehouse.gov\/briefing-room\/speeches-remarks\/2021\/07\/19\/remarks-by-president-biden-on-the-economy-3\/\" target=\"_blank\" rel=\"noopener\">said<\/a> in July 2021. Nearly a year later, Biden <a href=\"https:\/\/apnews.com\/article\/biden-ap-interview-transcript-fefb405f8383c6fdb4674eef9706fd65#:~:text=You%20could%20argue%20whether%20it,it%20caused%20inflation%20is%20bizarre.\" target=\"_blank\" rel=\"noopener\">told<\/a> the Associated Press, &#8220;The idea that [the American Rescue Plan] caused inflation is bizarre.&#8221;<\/p>\n<p><strong>Analysis:<\/strong> Prior to the American Rescue Plan&#8217;s passage, Biden&#8217;s own Treasury secretary, Janet Yellen, <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-06-04\/yellen-wanted-biden-relief-plan-cut-by-a-third-biographer-says\" target=\"_blank\" rel=\"noopener\">urged<\/a> administration officials to scale back the bill over fears it would exacerbate inflationary pressures. Economist Larry Summers, who served in both the Clinton and Obama administrations, echoed Yellen&#8217;s concerns. Summers questioned the American Rescue Plan&#8217;s size and later <a href=\"https:\/\/www.youtube.com\/watch?v=PBnaahSe7JU\" target=\"_blank\" rel=\"noopener\">called<\/a> the measure the &#8220;least responsible macroeconomic policy&#8221; in decades.<\/p>\n<p>&#8220;There is a chance that macroeconomic stimulus on a scale closer to World War II levels than normal recession levels,&#8221; Summers <a href=\"https:\/\/www.washingtonpost.com\/opinions\/2021\/02\/04\/larry-summers-biden-covid-stimulus\/\" target=\"_blank\" rel=\"noopener\">wrote<\/a> in a February 2021 column for the <em>Washington Post<\/em>, &#8220;will set off inflationary pressures of a kind we have not seen in a generation, with consequences for the value of the dollar and financial stability.&#8221;<\/p>\n<p>During the 2008 recession, the Obama administration provided around 55 million Americans with roughly $13.75 billion in direct payments. Meanwhile, the American Rescue Plan <a href=\"https:\/\/www.pandemicoversight.gov\/news\/articles\/update-three-rounds-stimulus-checks-see-how-many-went-out-and-how-much\" target=\"_blank\" rel=\"noopener\">provided<\/a> around 168 million Americans with approximately $401.5 billion in direct stimulus payments. Once that spending set in, core inflation in the United States <a href=\"https:\/\/www.vox.com\/23036340\/biden-american-rescue-plan-inflation\" target=\"_blank\" rel=\"noopener\">skyrocketed<\/a>, prompting members of Biden&#8217;s own party to acknowledge the plan&#8217;s inflationary impact. During a June 2021 town hall, Rep. Kim Schrier (D., Wash.) <a href=\"https:\/\/freebeacon.com\/democrats\/swing-district-dem-says-partys-stimulus-spending-drove-inflation\/\" target=\"_blank\" rel=\"noopener\">said<\/a> Biden&#8217;s stimulus spending resulted in &#8220;a lot more <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/swing-district-dem-says-partys-stimulus-spending-drove-inflation\/\" title=\"Swing-District Dem Says Party\u2019s Stimulus Spending Drove Inflation\">people buying things<\/a>,&#8221; which she said would &#8220;cause prices to go up.&#8221; In October, meanwhile, then-House majority whip Jim Clyburn (D., S.C.) said that &#8220;all of us knew&#8221; the stimulus spending would lead to &#8220;rising costs.&#8221;<\/p>\n<p>&#8220;Any time you put more money into the economy, prices tend to rise,&#8221; Clyburn said.<\/p>\n<p>Boushey&#8217;s argument that America&#8217;s inflation did not exceed price hikes seen in other nations also falls flat. A March 2022 <a href=\"https:\/\/www.frbsf.org\/economic-research\/publications\/economic-letter\/2022\/march\/why-is-us-inflation-higher-than-in-other-countries\/\" target=\"_blank\" rel=\"noopener\">report<\/a> from economists at the Federal Reserve Bank of San Francisco found that U.S. core inflation from early 2021 onward grew at a higher rate than the average price hikes seen in nine other wealthy countries, including France, Germany, Canada, and the United Kingdom. &#8220;These differences in inflation readings cannot be explained by measurement issues,&#8221; the report said. It went on to argue that &#8220;fiscal support measures,&#8221; such as the American Rescue Plan, &#8220;may have contributed to this divergence by raising inflation about 3 percentage points by the end of 2021.&#8221;<\/p>\n<p><strong>VERDICT:<\/strong> Printing money leads to inflation\u2014and everyone knows it. We rate this claim 4 Clintons.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Verdict: Biden signed the American Rescue Plan. US inflation surpassed other nations. Claim: Heather Boushey, an economic adviser to President Biden, stated that the $1.9 trillion stimulus package was not the main cause of inflation, as US prices did not rise higher than those in other countries.<\/p>\n","protected":false},"author":2088,"featured_media":1971981,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[544],"tags":[],"class_list":["post-1971980","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-free-beacon"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1971980","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2088"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1971980"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1971980\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1971981"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1971980"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1971980"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1971980"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}