Speaker Nancy Pelosi (D- Calif.) disagrees with Sen. Joe Manchin (D-W.Va.), saying the Democrat’s policy initiatives are a driving force behind inflation. However, he “is not right.” Instead, “it is exactly the opposite,” she told George Stephanopoulos on “This Week” on Sunday.
The anchor asked her about Congress’ ability to bring costs down: What can they do? Pelosi told him President Joe Biden’s $1.75 trillion Build Better Back (BBB) Act is a “deficit-reduction bill.” Pelosi pointed to a letter signed by 17 Nobel laureates who state how the legislation is written that it will not create inflation or it is non-inflationary.
Sen. Manchin disagrees with Pelosi that Biden’s BBB Act is non-inflationary. He and Sen. Krysten Sinema (D-Ariz.) effectively ended the bill’s progress in December 2021, when neither approved the legislation saying it would cost the country too much money. They further blocked its passage when they staunchly disapproved of voting to end the 60-40% filibuster requirement.
Pelosi made her remarks several days after the news the consumer price index (CPI) rose 7.2% percent annually by Jan. 31, 2022. The U.S. Department of Labor’s report, released on February 10, indicated this is the steepest increase since February 1982.
Shortly after the Labor Department’s statement, Sen. Manchin said Congress should not continue to “add more fuel to an economy already on fire.” Presumably, he was referencing the Democrat push for their special spending and climate legislation, about $2 trillion.
Another way that Congress is tackling inflation is that The House of Representatives passed the America COMPETES Act, Pelosi told Stephanopoulos. The legislation, intended to bolster domestic supply chains and increase scientific research, was passed largely along party lines, 222-210. The Speaker asserts the Act was a considerable step in the right direction. Since it addresses the country’s supply chain shortages, Pelosi says the legislation will, as a result, decrease inflation.
When confronted with wages not keeping up with the factors that most contributed to the inflation increase in January, which were food, electricity, and shelter, Speaker Pelosi added:
The fact that people have jobs always contributes to an increase in inflation, and that’s a good thing. But inflation is not good…we have to contain it.
The COMPETES Act not only addresses supply chain disruptions exacerbated by the COVID-19 pandemic, but it includes a “chips” fund of $52 billion to bring semiconductor production back to the United States. Also included, Pelosi boasted that the bill consists of a $45 billion investment to ensure that critical goods are manufactured here, rather than relying on China. She believes this bill confronts the scarcity of consumer goods.
Written by Cathy Milne-Ware
Sources:
The Hill: Pelosi: ‘It’s not right’ for Manchin to say ‘what we’re doing is contributing to inflation;’ by Mychael Schnell
The Hill: House passes sweeping China competition bill; by Cristina Marcos
Bloomberg: Manchin Prods Fed to Tackle Inflation, Citing Economy Risk; by Tony Czuczka
Forbes: Why Is Inflation So High? By Taylor Tepper
Featured and Top Image Courtesy of Gage Skidmore’s Flickr Page – Creative Commons License
Inset Image Courtesy of Jernej Furman’s Flickr Page – Creative Commons License
