She had some deep thoughts about the federal deficit. For example, the idea that government spending actually reduces the deficit.
.@SpeakerPelosi: "When we're having this discussion, it's important to dispel some of those who say, well it's the government spending. No, it isn't. The government spending is doing the exact reverse, reducing the national debt. It is not inflationary." pic.twitter.com/6HKE5gX2SP
— The Hill (@thehill) March 12, 2022
This talking point has now come out to the Biden White House too. This Friday, Biden slammed Americans for putting the blame on government spending for our current inflation problem, saying that huge, dollar-printing plans like the American Rescue Plan did not have an impact.
Regardless of who is stating this, though, it is absolutely a fake contention. The federal government spent around $6.82 trillion last year under Biden. That gets to around 50 percent over what the country was spending before the pandemic (2019 spending was about $4.4 trillion). To say that blowing that much fake money into our economy isn’t inflationary is so dumb as to call into question the person’s mental sanity.
Besides, we don’t have to wonder about this topic. With inflation now at 7.9 percent year-over-year, it is not debatable that the increasing federal budget is the huge variable in boosting prices compared to the pre-pandemic time. Nothing has changed. Yes, demand has gone up after lockdowns, but there was higher demand before the pandemic–and inflation still stayed between 1-2 percent.
For any politician to say spending lowers our deficit, when it still stays at astronomical numbers, is just crazy. It’s gaslighting. Democrats will have to come up with a better way to explain why commonly purchased items are so expensive instead of pretending we can escape inflation through spending. Of course, no good way exists because to say this is total nonsense, so you get the total lies Nancy Pelosi is pushing here.
Will any of the so-called fact-checkers take her on? Of course they won’t. They haven’t even tried to fact-check Joe Biden’s statements about inflation I mentioned previously. Regardless, I don’t see Pelosi’s “crazy aunt” behaviour as being very believable for most American citizens, no matter how the media frames it.