Senate Democrats ignore inflation, push ahead with negotiations on another massive budget reconciliation spending deal

Current price inflation is a complex problem with several contributing factors. Still, arguably the most significant of those are the profligate spending of trillions of dollars by the Democrat-controlled Congress in recent years fueled by the Federal Reserve’s creation of trillions more dollars in unbacked fiat currency as a form of economic stimulus to counter the economic issues caused by the government’s response to the pandemic.

Now, with inflation having reached historic highs, Democrats appear to have learned nothing as they recklessly press forward with another attempt at a budget reconciliation deal that will increase both taxes and spending, according to a report from The Hill.

And, once again, it appears that Sen. Joe Manchin (D-WV) stands virtually alone as the only Democrat willing to oppose the fiscal insanity planned by his own party.

Schumer tries to get Manchin to support another massive spending package

Sen. Manchin, who blocked President Joe Biden’s outrageously expensive Build Back Better spending package last year, has been engaged in negotiations with Senate Democratic Leader Chuck Schumer (D-NY) on a scaled-down version of Biden’s rejected proposals — a new tax and spending plan that some Democrats incredibly assert would actually reduce inflation.

Schumer is quite obviously hoping to score a legislative win for Democrats ahead of tough midterm elections, and according to Roll Call last month, the revived talks began in early June on a package that would include tax increases on the wealthy and small businesses to provide revenue for spending on climate change and healthcare programs and subsidies.

The hope is that, with Manchin entirely on board and with approval from the Senate Parliamentarian, this new package can be passed through the evenly split Senate with just Democratic votes via the budget reconciliation process that allows for certain measures to bypass the filibuster’s 60-vote threshold.

Manchin wants to guard against further inflation, reduce the budget deficit

The problem for Democrats, however, is that Manchin actually views inflation as a serious issue and, as such, according to The Hill, told reporters this week with regard to the ongoing negotiations, “Everyone should be extremely cautious, because you cannot do a thing right now that’s going to add or be inflammatory to inflation.”

The relatively moderate West Virginia senator has expressed some support for certain aspects of a potential package deal, but has made it clear that his support is conditional on the overall legislation not worsening inflation and his demand that roughly half of any new revenue raised be put toward reducing the annual deficit.

Manchin’s concerns about inflation were more fully addressed in a statement he released Wednesday upon the news that the Consumer Price Index Report showed that inflation had risen 9.1 percent in June over last year and showed no signs of substantially cooling off in the near future.

“We cannot add any more fuel to this inflation fire”

“Today’s inflation data illustrates the pain families across the country are feeling as costs continue to rise at a historic rate. 9.1 percent is cause for serious concern,” the senator said. “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.”

“For more than a year, leaders in Washington have ignored the serious concerns raised by myself and others about the rising cost of inflation,” Manchin continued. “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.”

He added, “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.”

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