Wage Price Spiral Always Ends Poorly for Workers, Small Businesses, and the Economy
"It’s not just the spending. It’s the labor shortage, and it’s the inflation that goes with it that is so damaging,” I said on “Your World with Neil Cavuto” on Fox News, warning that Democrats have made the labor shortage worse, accelerated inflation, and brought the economy to the brink of a wage-price spiral.
CLICK HERE to watch the full interview.
On President Biden’s inflation tax costing American families, I said:
“Inflation this year, as more Americans are getting pushed into higher tax brackets together with higher prices, costs an average family almost 5,000 dollars last year. That’s a huge amount.
“What worries me is: I think the consumer price index will go up even higher. We’re seeing wage inflation accelerating in America, and my worry is that we’re on the verge of, or already in, a wage-price spiral. Those are so damaging, and it always ends badly for workers and small businesses and the U.S. economy.
“The President not only doesn’t recognize it, but he’s still pushing for the Build Back Better plan that will make inflation and the worker shortage even worse.”
I warned that Democrats’ policies are worsening the labor shortage, and making the supply chain crisis and inflation worse:
“It’s not just the government spending. In Build Back Better, there are crippling tax hikes that will slow investment in the U.S., including into the plants and technologies that can help us work through the supply chain problems.
“There are also several programs that together actually discourage Americans from reconnecting to work. As long as we can’t find the people to man the production lines, assemble the product, and deliver them, you’re going to see inflation continue to increase. It’s not just the spending. It’s the labor shortage, and it’s the inflation that goes with it that is so damaging.”