Do you remember when gas was much cheaper during Donald Trump’s administration?
Gas prices have since skyrocketed following Joe Biden’s awful decisions to stop the XL Keystone pipeline, stop the flow of existing pipelines, and prevent drilling on federal lands.
Temporarily tapping the U.S. Strategic Petroleum Reserve did not reverse this negative impact. Even the Department of Energy admitted that a large portion of the 50 million barrels released from U.S. reserves was pproved for sale abroad.
Republican Senator Rand Paul of Kentucky has sounded the alarm on inflation, saying it’s going to get worse under Biden.
Americans are witnessing a 7% spike in consumer prices under Biden. This is a 40-year high.
Paul says the rising prices are “only going to get worse” as a result of Congress spending wildly out-of-control amid the coronavirus pandemic.
“In recent months, prices on nearly everything from gas, food, and clothes to electricity, car prices, and rent, have all increased, and unfortunately it’s only going to get worse,” Paul said in a statement released first to Fox News Digital.
“Congress needs to realize that further spending at this time of rapidly rising prices is only going to continue the trend of rising prices on this nation’s already vulnerable businesses and families.”
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Paul’s 18-page report is called “The Hidden Tax” and it shines a spotlight on how prices on everyday essential goods have shot up in the last year, citing publicly available price index studies.
Paul also cites public opinion studies, such as Gallup, that found households making $40,000 or less are under the most hardship by the rising costs, whereas households earning at least $100,000 are less impacted.
While larger businesses have been able to adapt to the changing conditions, it is small businesses with thin margins that are hard-hit, the report said. “Sustained inflation is more likely a fatal blow to small businesses squeaking by than larger corporations entrenched in their economies of scale,” Paul wrote.
As for the cause of the rising prices on everything from fuel to groceries – Paul lays the blame on Congress by passing massive spending in the wake of the pandemic.
“$4.9 trillion in COVID-19 stimulus spending has led to one of the highest and sustained levels of inflation in U.S. history,” Paul said in a statement. “Though government stimulus spending was intended as a form of relief, and low and middle-income families as well as small business owners were promised that their taxes would not increase as a result of these packages, Americans are now paying a ‘hidden tax’ for these policies.”
In the early days of the coronavirus pandemic, Congress swiftly passed massive relief legislation in a bipartisan fashion to boost unemployment checks, help small businesses and deliver direct stimulus checks. Under the Trump administration, Congress passed the $1.8 trillion CARES Act in March 2020 and a $900 billion follow-up relief package in December. Democrats under President Biden passed the $1.9 trillion American Rescue Plan last year.