+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

Joe Manchin slams rising inflation and dismisses the Biden administration's argument that it will be short-lived

Nov 10, 2021, 23:03 IST
Business Insider
Sen. Joe Manchin of West Virginia. Drew Angerer/Getty Images
  • Manchin dismissed arguments from the Biden administration that inflation will be short-lived.
  • "From the grocery store to the gas pump, Americans know the inflation tax is real," he wrote on Twitter.
Advertisement

Sen. Joe Manchin of West Virginia slammed a key argument from the Biden administration that inflation is temporary, jeopardizing the near-term passage of the Democratic social spending plan

A new report from the Bureau of Labor Statistics said inflation worsened in October with supply chain issues contributing to rising prices across the board, particularly for fuel oil, gas, and utilities.

Manchin, a key swing vote, said that inflation was only "getting worse."

"From the grocery store to the gas pump, Americans know the inflation tax is real and DC can no longer ignore the economic pain Americans feel every day," he wrote on Twitter.

The conservative West Virginia Democrat has repeatedly warned about rising inflation since the summer, echoing a GOP line of attack against President Joe Biden's spending plans. This may give him additional leverage to keep holding out from backing the $1.75 trillion social spending plan.

Advertisement

"We need to be very careful with this," Manchin told reporters last week, adding he'd spoken to West Virginians alarmed about the rising grocery and fuel prices.

Congressional Democrats are struggling to get their $1.75 trillion spending package to Biden's desk due to resistance from Manchin, and they need near-unanimity in both the House and Senate to succeed. The package includes a one-year extension of the expanded child tax credit, federal drug price controls, and measures to provide families with subsidies to afford childcare and more.

Experts say the Democratic package spreads out planned spending over a ten year period, and won't contribute to rising inflation significantly in the long-term. Democrats also want to fully pay for their spending with tax hikes on the richest Americans to keep the threat of inflation in check.

Recent polling indicates that Americans are concerned about rising inflation eating up more of their paychecks. The White House and Congressional Democrats pivoted in recent weeks by arguing their social spending bill will ease rising inflation and cut the federal deficit.

In a statement, Biden said it is "important" for lawmakers to approve his social spending package which he says will be fully financed and won't pile on more to the federal debt. He argued it will encourage Americans to re-enter the workforce by cutting childcare and eldercare costs, among other provisions.

Advertisement
You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article