Biden, Democrats' spending bill the 'clear reason' for inflation 'spiral': Sen. McConnell
Senate Minority Leader Mitch McConnell, R-Ky., slams the Democratic Party for spending bills he argues have contributed to record inflation and weighs the outcomes of November’s midterm elections.
President Biden's economic policies have led to inflation and recession fears not seen since the Carter-Reagan transition period in 1980-81.
Responding Biden adviser Gene Sperling's defense of the administration on "The Story,," Senate Minority Leader Mitch McConnell said Thursday Sperling "had a really tough time defending the indefensible."
The Kentucky senator noted even liberal economists for Presidents Clinton and Obama warned excessive spending will lead to the record inflation the U.S. is now seeing.
"This inflationary spiral is entirely the responsibility of this all-Democratic government," McConnell said.
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Mitch McConnell pins record inflation squarely on the Biden administration's shoulders. (AP Photo/J. Scott Applewhite | Photo by Anna Moneymaker/Getty)
In response to reports West Virginia Sen. Joe Manchin – the Democrat credited with blocking the last multi-trillion-dollar spending package – is considering negotiating a slimmed-down version, McConnell said he should be aware of the effect any unnecessary debt-spending will have on an already crushing bear market.
"With all due respect to Joe, that's another spending bill that they're flirting around with -- adding another trillion dollars, much of it in taxes on businesses that are not incorporated," he said.
In terms of a further additional spending bill, McConnell said he could see common cause in one aspect of it, recognizing and responding to the semiconductor chip shortage in the U.S. that caused a vehicle shortage as supply chains with Asian countries depended upon by American consumers got tied up.
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Ford Motor vehicles parked in an overflow lot in Louisville, Kentucky, U.S., on Tuesday, April 19, 2022. A shortage in automotive semiconductor chips has caused vehicle manufacturers to scale back production of automobiles. (Getty)
In past years stateside, several officials have called for further exploration of REE (Rare Earth Element) deposits in the U.S. to cut reliance on foreign chip manufacturers.
In 2018, then-Rep. Lou Barletta, R-Pa., who was formerly mayor of Hazleton, told Fox News his area – once the epicenter of coalmining – is one place to start.
"Studies have shown that the Appalachian coal fields in Pennsylvania contain some of the highest concentrations of REEs in the country," Barletta said of the area from Biden's Scranton hometown south to Allentown and west to Shamokin.
"Researchers have found ways to extract REEs from Appalachian coal byproducts that are more environmentally friendly than traditional methods and require less energy."
On "The Story," McConnell said the semiconductor chip aspect of the forthcoming legislation is "arguably justified" but said most of the rest of the proposed spending will just put America in a deeper economic hole.
When asked about tightening generic-ballot polls, McConnell largely dismissed concerns about Senate candidates in Pennsylvania and Georgia, where Dr. Mehmet Oz and Herschel Walker are trailing Lt. Gov. John Fetterman and Sen. Raphael Warnock respectively.
"I think all the races that are going to determine who has the majority next year are competitive," he said.
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