President Joe Biden has hit back at claims that the inflation concerns are getting the better of the Conservative party. He, in fact, took a lap of victory during a recent Senate win and cited some very encouraging words regarding the economic plan he has and that it is currently working.
Joe Biden would also outline at this time the new steps that are being taken by the administration to lower the cost of consumer goods that included a cost reduction in oil and groceries.
During his speech in the East Room of the White House, Joe Biden spoke of the report that came from the Bureau of Labor Statistics. In the report, it showed that the inflation price was slowing in consumer products. This was found throughout July.
When stripping out the more volatile goods like foods and energy items, prices in the consumer market grew by 4.3% in the 12 months that ended July 2020.
Overall, priced did increase 5.4% over the same period of 12 months, this was flat compared with June. The report from the Labor Statistic came days after it was announced that the economy also grew with the positive jobs boom which saw 943,000 new jobs raise in the month of July.
Though inflation may increase, the economy still grows, and this also has coincided with the role out of the Covid-19 vaccines. This process has allowed many Americans back into work and pick up a normal life as possible.
Joe Biden has been quoted as saying: “Jobs are at a high in July since June ended. We can be very proud of that. Also, whilst jobs are up, prices are also coming down. This is our Economic growth in motion. This swing is the fastest it has been in some 40 years. Plus, we have many more historic investments that are on the way as well.”
Despite the positives, the President had argued that families in America may still be feeling the pinch and vowed to ease any burden with new plans to come in place over the coming weeks.
Suggestions have been made that Biden is planning on bringing together shipping lines and trucking companies to speed up any operations that can help the countries port during a supply bottleneck.
Joe Biden quoted: “These bottlenecks come with price hikes that will need to be reduced. It is part of the necessity to better our economy. We will be keeping an eye on this, whilst the federal reserve will take the appropriate action where and if needed.”
This leads Joe Biden’s plans towards the $1.3 trillion infrastructure package, that has been called the Infrastructure Investment and Jobs Act. This includes a $550 billion spending over the next 5 years. It plans to invest in new roads at a cost of $110 billion. This includes new bridges and major projects. There is a further $66 billion being put into freight and passenger rail.
There is a $65 billion cost going into the electrical grid maintenance and a $65 billion to expand internet broadband access. The spending continues with $39 billion being put into the modernization of the transit system. And lastly, $7.5 billion was kept aside for the development to build what would be a national network of electrical vehicles and charging points.