Disappointing U.S. economic data released last week reflected the Biden administration’s heavy-handed mismanagement of the economy. Real gross domestic product (GDP) slowed to just 2% annualized in the third quarter of 2021. The economy continues to suffer from& the Biden administration’s reckless spending and federal regulations hampering any opportunity for growth.
Joel Griffith, research fellow in the Roe Institute for Economic Policy Studies at The Heritage Foundation, said the following on Thursday in response to third quarter GDP:
“Economic growth dramatically slowed in the third quarter to just 2% annualized—far lower than expectations and the slowest pace since the post-shutdown recovery began. Today’s jarring report is further indication that American families and businesses are suffering from misguided government policies.
“Supply chain issues are wreaking havoc through the entire production process— crippling the manufacturing sector and creating empty shelves. Misguided policies on the federal, state, and local level caused these supply chain problems, including COVID restrictions that stunted processing facilities, slowed down factories, and made life miserable for those in the transit business. California compounded the problem with its crackdown on older diesel trucks and attempted ban on independent owner-operators of trucking rigs. The proposed federal COVID-19 vaccine mandate on 80 million workers threatens to magnify these problems by potentially driving millions Americans out of their jobs.
“In addition to a slowing economy, the cost of living—especially housing, energy, and food—continues to squeeze families. Meanwhile, businesses this year found themselves in competition for workers with the federal government’s generous unemployment benefits. Labor force participation over the past year for men is at an all-time low, and for women at lows not seen since the mid-1980s.
“As winter approaches, families face heating costs twice as much as last year, while filling up a family minivan tops $150 in parts of California. The Biden administration has conducted a war on energy. This is best exemplified by killing the Keystone XL oil pipeline in January, followed by an attempted moratorium on energy exploration on federal property. After experiencing energy independence just 18 months ago, the Biden administration finds itself begging foreign producers to relieve American families.
“Now, left-wing lawmakers seek to build on this record of failure with a so-called Build Back Better plan that represents the largest tax-and-spending plan in U.S. history, and gives politicians and bureaucrats even more power and control over families and businesses. This includes Green New Deal-style policies, more welfare benefits, and more federal involvement in the education of our children. To pay for this $3.5 trillion in spending, the left wants to increase taxes on businesses to a level higher than Communist China, while also imposing a wealth tax that would confiscate the capital vital to future economic growth. In addition, the central bank is expected to print billions more to finance the deficits—risking more of the inflation already acting as tax on all American families.
“This administration has proven that everything it touches costs the American people more money and more freedom. The Biden administration must practice fiscal and regulatory restraint to course correct.”