In a column to his constituents, Oklahoma Republican Congressman Tom Cole says that by all appearances, economic challenges are not going away under the Biden administration.
Fresh off his re-election victory last week, Cole said the country’s economic and inflationary troubles “are not yet in the rearview mirror.” He still thinks the U.S. economy is in a recession.
Here is his column:
Due to the runaway inflation caused by the irresponsible spending policies of Democrats, Americans are struggling more financially than they have in 40 years. Despite the ongoing economic hardships, Democrats in Congress and the White House continue to claim the state of our nation’s economy is perfectly fine. Even though the most recent quarterly Gross Domestic Product (GDP) report showed small economic growth for the first time this year, our nation’s economic and inflationary troubles are not yet in the rearview mirror. In fact, there are still several signs that our economy is in a recession.
Last month, the Bureau of Economic Analysis reported that the GDP rose 2.6 percent after two straight quarters of decline. Although this showed an increase in exports and government spending, prices of groceries and necessities still rose and surpassed wage increases, mortgage rates remained at a 20-year high and consumer investments and spending shrunk. Additionally, the shrinking economy has caused the average 401(k) to decrease by nearly 25 percent, averaging a loss of almost $34,000 per investor. Because of these factors, economic experts unfortunately say this “ghost growth” is merely fleeting and will not last.
Further signs of economic troubles include the U.S. Federal Reserve’s decision to raise interest rates for the sixth time this year in an attempt to cool down soaring prices. This additional hike will make it even less affordable for hardworking Americans to buy homes, purchase new vehicles or make worthwhile investments for their futures. Make no mistake, the Federal Reserve would not make such a move if our economy were doing well and showing real signs of recovery.
Finally, last week in a now-deleted tweet, the White House incorrectly claimed that the Biden Administration is the reason for the most significant Social Security payment increases in 10 years. However, this increase is actually attributed to 40-year high inflation, not current presidential leadership. In fact, Social Security benefit increases are directly attributed to the Cost-of-Living Adjustment, which is calculated by the Social Security Administration and based on the increase in the Consumer Price Index, which has consistently risen throughout this year.
Unfortunately, President Biden continues to double down on his policies that landed us in this mess in the first place. With Republicans likely to regain control of the House, I am hopeful that Congress and the Administration can pursue bipartisan solutions to build back a strong economy and fight inflation. However, one thing is certain. Such solutions cannot involve more out-of-control spending that ignited and fanned the flames of our country’s economic crises.