Economist Jonathan Williams of American Legislative Exchange Council (ALEC) says Tuesday's news of increased inflation and the big drop at the stock market "really flies in the face of everything that President Biden is saying about the economy right now."
Here are the facts: The Dow ended nearly 1,300 points lower Tuesday. The Nasdaq closed 632 points lower, and the S&P 177. Earlier in the day, the Associated Press said U.S. inflation is "still stubbornly high" despite the August slowdown. Consumer prices rose 8.3% from a year earlier and 0.1% from July.
Nevertheless, those who attended the White House event yesterday heard from President Joe Biden that things are going well:
Biden: "The soul of America is vibrant, the future of America is bright, and the promise of America is real. [The Inflation Reduction Act] is the single most important legislation passed in the Congress to combat inflation and one of the most significant laws in the nation's history in my view."
Alfredo Ortiz, president and CEO of Job Creators Network says it took some nerve to take a victory lap on the Inflation Reduction Act (IRA) on the same day that inflation increased and the market fell by so many points.
"Today's data showing that inflation increased last month and core inflation increased twice as fast as expectations confirms that Biden has no control over inflation," says Ortiz. "Biden's policies from Day 1, especially his attack on the domestic energy market, have led to spiraling costs for American consumers."
Ortiz says food inflation is the highest it has been since President Jimmy Carter, and now Biden wants to "add another trillion in reckless spending for the student loan bailout which will push prices even higher."
"The IRA will make things worse," says Ortiz. "It increases taxes on small businesses and will be mostly paid for by Americans earning less than $400,000 per year as corporations are forced to pass along higher costs to everyday consumers."
Based on this, Ortiz says Biden and congressional Democrats should be apologizing for the IRA, not bragging about it.
"Historic inflation [under Biden] is reducing real wages and living standards and is causing the stock market to decline due to the specter of increasing Federal Reserve interest rates," says Ortiz. "As a result, American savings accounts and 401(k)s are cratering, (and) Biden's policies are responsible for this one-two punch of higher costs and smaller savings hitting ordinary Americans."