Sen. Shelley Moore Capito, R-W.Va., said the new inflation numbers released Wednesday were “discouraging” and create “pessimism.”
“These were huge inflation numbers today,” she said of the 9.1 percent rise, the highest since 1981. “It is very discouraging to a lot of people and a lot of West Virginians.”
Capito said during a virtual press briefing Wednesday afternoon she remembers inflation during the early 1980s when wages did not go very far and “it was much more difficult” to even pay for necessities. “It was miserable.”
“The (Biden) administration has been very negligent in trying to curb some of the high inflation numbers,” she said, pointing to the American Rescue Plan passed in March 2021 by Democrats that made inflation worse.
Capito said a study has shown that the $1.9 trillion package “has contributed several points” to the inflation numbers.
“Now, Democrats and their leadership are talking about spending another trillion dollars,” she said, referring to a proposal to try to revive, but pare down, the $1.75 trillion Build Back Better plan that was shot down by Sen. Joe Manchin late last year.
Capito said pumping more money back into the economy will do nothing but drive inflation even higher.
“As people’s wages go up, they still lose,” she said, pointing out that wages have gone up an average of 6 percent but with inflation at 9.1 percent, that is actually a loss of 3 percent for Americans. “I think it is very clear that the flood of money and the overspending … damaged our recovery out of the pandemic.”
Gas prices remain high as well, she said, which at least in part are due to the administration’s attitude and actions toward fossil fuels.
Those new inflation numbers are frustrating, she added, and puts a real “damper” on how Americans see the country, leading to “pessimism and frustration.”
Sen. Joe Manchin, D-W.Va., released a statement Wednesday regarding the new inflation numbers, calling on legislators to act, and also indicating he will not support more massive Washington spending.
“Today’s inflation data illustrates the pain families across the country are feeling as costs continue to rise at a historic rate,” he said, “…9.1 percent is cause for serious concern. Items like chicken, eggs and lunchmeat have increased to new highs, while energy costs rose more than 40 percent in June with those that can least afford it suffering the most. It is past time we put our country first and end this inflation crisis.”
Manchin, like Capito, said the nation’s leaders had been turning their backs on the voices of people.
“For more than a year, leaders in Washington have ignored the serious concerns raised by myself and others about the rising cost of inflation,” he said. “While Washington seems to now understand this reality, it is time for us to work together to get unnecessary spending under control, produce more energy at home and take more active and serious steps to address this record inflation that now poses a clear and present danger to our economy. No matter what spending aspirations some in Congress may have, it is clear to anyone who visits a grocery store or a gas station that we cannot add any more fuel to this inflation fire.”