U.S. Sen. John Thune (R-S.D.) today joined Good Morning America 3rd Hour to discuss the historically high inflation rate that is causing economic hardship for American families and how Democrats would make inflation worse if they succeeded in passing new tax hikes and government spending.
On inflation under President Biden’s watch and the impact on families:
“Well, I think if you look at it, Amy, when President Biden took office the inflation rate was 1.4 percent, well within the Fed’s range of 2 percent. Now, as you said, it's a 40-year high, 9.1 percent last month year over year.
“What that represents, according to the Joint Economic Committee in a study they did recently, is about 700 additional dollars per month per family in this country, or about $9,000 a year in higher costs.”
On the causes of high inflation:
“I think it comes back to the bill [Democrats] passed, which we tried to discourage them from passing, and even liberal Democrat economists from the Obama administration also suggested this was a really bad idea to flood the zone with a lot of spending, which they did with a $2 trillion bill last year. That overstimulated the economy. You know, the textbook definition of inflation is too many dollars chasing too few of goods. So it started with the spending.
“I think the other issue, honestly, is lack of a coherent energy policy in this country. A lot of what drives inflation is gas prices. And if you look at the price of gas, it's doubled since the president took office. And I think a lot of that has to do with just not having the supply. They shut down a lot of oil and gas production in this country.”
On ways to lower inflation:
“I think there are things you can do. One, stop the wasteful spending, unnecessary spending. Don't talk about raising taxes. That would be a horrible idea right now, which is on their agenda. And then, come up with a coherent energy policy that emphasizes American energy production so that we're not dependent upon other countries around the world.”