In a move sure to blow up in their faces down the road, Democrats tapped by House Speaker Nancy Pelosi (D-CA) to serve on the lower chamber’s new economic diversity panel are shrugging off concerns about rising inflation in the wake of COVID-19, the Washington Examiner reports.
House Dems moved to create the new House Committee on Economic Disparity and Fairness in Growth back in January.
According to the Examiner, its purpose, in the words of Pelosi, ranges from addressing economic inequality to intervening in “the increasing divide” to ending “the health, economic, and environmental injustice.”
“Under our inflation targets”
Democrats announced their picks for the panel in a press conference Wednesday. There, they said that eight Democrats would serve on the committee, including California Rep. Sara Jacobs, who caught the eye of Examiner correspondent Susan Ferrechio for her suggestion that recent surges in the prices of consumer goods including lumber are part of the “natural” course of the economy.
The California Democrat went on to intimate that inflation in past years had actually been too low.
“Prior to COVID-19, we were under our inflation targets,” Jacobs said Wednesday, according to Ferrechio. “The Fed sets an inflation target of 2[%] to 3%. We were not reaching that for many, many years. And so, this also could be a natural rebalancing of our economy.”
Republicans have yet to announce their picks for the panel, as the Examiner notes, but are expected to do so in the coming weeks.
“Inflation should be secondary”
According to Breitbart, the month of May saw the sharpest increase in the Consumer Price Index in over 10 years, and the core-price index experienced a rise the likes of which hadn’t been seen in almost three decades. Of course, it could be due to a lot of things, not the least of which is the coronavirus. The pandemic sent small businesses spiraling and disrupted supply chains in the U.S. and beyond.
Some experts, however, believe that this is only part of the explanation. They also point to exorbitant government spending — including the $1.9 trillion coronavirus relief package signed into law by President Joe Biden earlier this year — as a culprit, warning that continued high spending could further stifle the economy.
But the Democrats on Pelosi’s new committee don’t seem to mind.
“What we have been told by folks like [Treasury Secretary] Janet Yellen, for example, and economists on both sides of the aisle, is that worrying about inflation should be secondary to what we have just done,” Rep. Gwen Moore, a Wisconsin Democrat, declared this week, according to the Examiner.
It’s an extremely short-sighted approach to economics. But when it comes to Pelosi and company, what else can we really expect?