AFP Report Shows that ‘Bidenomics’– Not Business – Creates Inflation

Jun 27, 2024 by AFP

New Economic Report Calls Out Politicians for Pointing Fingers After Backing ‘Bidenomics’

Washington, DC— Today, Americans for Prosperity (AFP) released a new economic report, responding to lawmakers’ attempts to dodge accountability for rubber-stamping President Biden’s economic policies by blaming businesses for increased consumer prices.

As first reported by the New York Post, Bidenflation Blame Game: How Big-Spending Politicians Scapegoat Business by AFP Senior Fellow in Fiscal Policy Kurt Couchman and AFP Economic Policy Analyst Ilana Blumsack addresses lawmakers’ rhetoric of blaming businesses for higher prices or downsizing products.

However, expert analysis from Couchman and Blumsack shows that corporations haven’t seen anything like the supposed 74 percent increase in profits claimed by lawmakers like Sen. Bob Casey (D-PA). These and similar claims rely on cherry-picked data that ignores regular business expenses like taxes and overhead.

The report shows that government spending and regulatory interventions in the economy during and after the COVID-19 pandemic thoroughly explain the economic pain that’s hurting Americans nationwide.

Excessive government spending in signature legislation such as the American Rescue Plan, the misnamed Inflation Reduction Act, and the CHIPS and Science Act flooded the economy with money. It caused the Federal Reserve to raise interest rates to control rising prices. However, as inflation remains stubbornly high, the politicians who voted for all the spending have become defensive and started looking for someone else to blame.

Report author Kurt Couchman issued the following statement after the report’s publication:

“DC politicians have been parroting deceptive talking points about business profits driving inflation. President Biden even repeated those claims during this year’s State of the Union address. But repeating it doesn’t make it true. Reckless government spending and debt caused inflation and higher interest rates. What’s most telling is that the politicians who backed the ‘Bidenomics’ spending and regulation spree are the same who loudly cast blame on anyone else.

“If we are going to straighten out the nation’s economic problems, we must be honest about what caused inflation in the first place. The Bidenflation Blame Game shows that Congress must control federal spending and debt through better budgeting, carried out by those who recognize the causes of today’s challenges.”

Americans for Prosperity Regional Director Ashley Klingensmith added:

“Real leaders own up to their failures when they’re wrong. What we’re seeing from members of Congress—including my senator, Bob Casey—is an immature and deceptive excuse to cover up a lousy voting record. Senator Casey and many other lawmakers have voted in lockstep with President Biden but aren’t willing to own the consequences, apologize, or change course. But we at AFP-PA will ensure that Pennsylvanians know his voting record and encourage them to call his office and tell him to stop voting for an agenda that’s actively hurting the Keystone State.”

Read the full report here. 

Read the one-pager here.