Getting Back on Track

As families begin to think about back-to-school purchases, Americans received a series of bad news about the economy this week. According to analysis by Deloitte, back to school shoppers will spend, on average, a whopping $661 per student shopping for supplies. Compared to 2019, this is an increase of 27 percent, and compared to 2021, an increase of 8 percent. Educational books and supplies are up 3.7 percent, girls' and boys' footwear is up 6.7 percent, sports equipment is up 8 percent, and music instruments are up 5.6 percent.

This demonstrates what we already knew: Americans everywhere are feeling the pain of inflation.

This week, the Commerce Department reported the Gross Domestic Product (GDP), the most comprehensive measure of goods and services produced by the American economy, shrank by 0.9 percent in the period from April through June. This second straight quarter of negative GDP makes it clear: we are officially in an economic recession.

President Biden and Speaker Pelosi's reckless spending and progressive agenda have gutted our economy, yet they continue to deny the obvious and attempt to rewrite the rules of what constitutes a recession. Unfortunately, costs will only continue to rise. This week the Federal Reserve announced a hike to interest rates by 75 basis points with more increases expected in the coming months. While interest rate increases by the Federal Reserve are a standard response to high inflation, they also compound the problem for families, making the cost of borrowing money – including key transactions like mortgages and car loans – even more expensive.

Inflation is a tax on every American, and it hits those on low and fixed incomes the hardest. It has risen by nearly 550 percent since Biden entered office.

To make matters worse, America's seniors and those receiving Social Security are being pushed into higher tax brackets due to the cost-of-living adjustment. This forces them to pay the cost of President Biden and House Democrats' reckless spending twice.

Biden has said the U.S. is "not in a recession" and "on the right track" as total government spending has increased by over $9 trillion since Feb. 2021.

To get back on track we need to reject more of the same in the Build Back Better agenda and eliminate wasteful government spending that is driving inflation. Unfortunately, Democrats in Congress are doubling down on their failed policies in the Manchin-Schumer "reconciliation" deal.

With many workers on the sidelines of our economy, we must also reconnect workers to the millions of available job openings and ensure individuals are incentivized to earn more by going to work rather than staying home.

Our economy is on the wrong track, and Americans are counting on us to move policies to help turn it around. Unfortunately, we're only seeing more of the same misguided proposals from Democrats and the Biden administration.

Republicans have a plan for recovery by advancing pro-growth tax and economic policies. We should build on the success of the Tax Cuts and Jobs Act and further increase take-home pay and boost American businesses and innovation.