Senate Majority Leader Chuck Schumer (D-NY) insists that spending of trillions will “ease inflation pressures,” report forthcoming.
According to Axios, the report, Mark Zandi, Moody’s chief economist, claims that inflation worries are “overdone” because “much of the additional fiscal support … is designed to lift the economy’s longer-term growth potential and ease inflation pressures.”
“Greater investments in public infrastructure and social programs will lift productivity and labor force growth, and the attention on climate change will help forestall its increasingly corrosive economic effects,” the report continues, and the plan’s policies “would direct the benefits of the stronger growth to lower-income Americans and address the long-running skewing of the income and wealth distribution.”
In 2017, Moodrisky paid $864 million in settlement to federal and state authorities for marking risky mortgage securities as safe before the financial crisis in 2008. It contradicts an older report from the firm implying former President Trump’s immigration and labor reform policies forced down employment, pressuring companies to raise wages and salaries of Americans, making housing for young families cheaper.
“As the immigrants leave, the already-tight labor market will get tighter, pushing up labor costs as employers struggle to fill the open job positions,” the report said. “Mr. Trump’s immigration policies will thus result in … potentially severe labor shortages and higher labor costs.”
The second report from Moody’s is used as leverage by Schumer to push a $3.5 trillion Trojan horse package. The Producer Price index rose 7.3 percent in June from 12 months earlier, a tremendous demand since 2010 when 12-month data was first introduced. In comparison to May, the index rose one percent. On average, during the pre-pandemic Trump administration, the index rose by around 0.2 percent per month.
Voters in battleground districts are concerned about inflation and the rising cost of living, as 86 percent of respondents in a recent poll expressing concerns. Fifty percent of respondents reported being extremely or very worried.
Sen. Bernie Sanders (I-VY), the self-designated socialist, is writing the $3.5 trillion Trojan horse package that includes expanding medicare, global warming initiatives, subsidized housing, subsidized childcare, amnesty, and suburb displacement with low-income housing.