The POTUS explained that people have more money now due to his monetary COVID aid and supply disruptions.
US President Joe Biden has conceded that the record rates of inflation
“The irony is people have more money now because of the first major piece of legislation I passed. You all got checks for $1,400. You got checks for a whole range of things. It changes people’s lives. But what happens if there’s nothing to buy and you got more money to compete for getting goods? It creates a real problem.”
The Head of State has also brought up supply chains disruptions and the rising demand for ordered goods. According to Biden, the law of supply and demand is broken since citizens do not want to go to bars and restaurants because of COVID and prefer ordering goods online which disproportionately increases demand.
“Well, with more people with money buying product and less product to buy, what happens? The supply chain’s the reason, the answer is you guys. Prices go up.”
The President has also mentioned his $1.2 trillion infrastructure bill
“Along with other plans that I’m advancing, this bill is going to reduce the cost of goods to consumers, businesses, and get people back to work.”
According to the report issued by the Department of Labor, the US inflation in 2021 rose by 6.2% compared with the previous year. It has shown growth in all parts of the consumer price index (CPI) including prices on food, accommodation, energy and fuel, and others.