Biden-Harris Policies Continue to Hurt Consumers

The hearing examines the ongoing impact of the Biden-Administration's policies on American consumers, focusing on rising costs, inflation, and supply chain issues.

By Kaiana Matos September 26, 2024

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SUBJECT: Kitchen Table Economics: How Failed Biden-Harris Policies Continue to Hurt Consumers

DATE: September 25, 2024

OVERVIEW: The Subcommittee on Economic Growth, Energy Policy, and Regulatory Affairs convened to assess the economic impacts of policies under the Biden-Harris Administration. Discussions centered on inflation, regulatory burdens, energy costs, and their combined effects on American consumers. The hearing aimed to highlight the administration's economic policy failures and propose strategies to mitigate financial hardships.

HEARING RECORDING LINK: https://oversight.house.gov/hearing/kitchen-table-economics-how-failed-biden-harris-policies-continue-to-hurt-consumers-2/

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Witnesses

  • Dr. Paul Winfree, President & CEO, Economic Policy Innovation Center 
  • Patrice Onwuka, Director, Center for Economic Opportunity, Independent Women’s Forum 
  • Chuck DeVore, Chief National Initiatives Officer, Texas Public Policy Foundation
  • Brendan Duke, Senior Director for Economic Policy, Center for American Progress Action Fund (Minority Witness)

Key Themes & Highlights

  • Republican Concerns:
    • Economic Strain on Consumers: Inflation, driven by excessive government spending, has raised costs across essentials like food, housing, and energy. Witnesses attributed $1.7 trillion in new regulatory costs to the Biden-Harris Administration, straining businesses and consumers alike.
    • Energy Policy Failures: Republicans criticized policies that undermine domestic energy production, citing increased reliance on renewables as driving up costs.The administration's focus on electrification was described as impractical, particularly for rural and low-income Americans.
    • Impact of Regulatory Overreach: Witnesses highlighted how regulations on household appliances and energy have increased costs for families, particularly low-income households. Republicans argued that federal overregulation stifles small business growth and market competition.
  • Democratic Concerns:
    • Defense of Biden-Harris Policies: Democrats emphasized that inflation rates in the U.S. are among the lowest in the industrialized world. Programs like the American Rescue Plan, CHIPS Act, and Inflation Reduction Act were lauded for their role in job creation, infrastructure development, and reducing healthcare costs.
    • Focus on Energy Independence: Witnesses argued for the necessity of transitioning to renewable energy, despite initial costs.
    • Green Transition: Democrats highlighted record oil and gas production during the Biden Administration and criticized claims of energy policy failure.
  • Witness Testimonies:
    • Dr. Paul Winfree: Criticized the administration’s spending and regulatory agenda, linking these to inflation and reduced economic dynamism. Emphasized the disproportionate burden on small businesses and working families.
    • Patrice Onwuka: Focused on the impact of inflation on low-income families, highlighting higher energy and utility costs that exacerbate financial hardship. Advocated for deregulation to reduce consumer costs.
    • Chuck DeVore: Argued that electrification mandates drive up costs and reduce energy reliability, disproportionately affecting rural areas. Proposed balanced energy policies that include fossil fuels to mitigate costs.
    • Brendan Duke: Maintained defense of the administration’s record, citing job growth and wage increases. Highlighted successful investments in manufacturing and infrastructure as evidence of economic recovery.
  • Contentious Points:
    • Republicans: Accused the Biden-Harris Administration of prioritizing a "radical green agenda" over practical solutions for consumers.
    • Democrats: Defended the administration's record, citing improved job growth and lower inflation compared to other nations.
  • Key Discussions:
    • Inflation and Consumer Impact: Discussions focused on the cost of living increases, with Republicans citing regulatory burdens as the main driver, while Democrats pointed to global supply chain disruptions.
    • Energy Policy Debates: Both sides clashed over the long-term viability of renewables versus fossil fuels, with significant focus on grid reliability and energy costs.
    • Regulatory Costs: Witnesses debated the trade-offs between consumer protections and regulatory costs, with Republicans advocating for deregulation to reduce consumer burdens.

In-Depth Notes

  • Chairman Pat Fallon opened the hearing by criticizing the Biden-Harris Administration for increasing inflation and regulatory burdens. Highlighted that since January 2021, inflation has risen by over 20%, and Americans are spending $11,000 more annually to maintain the same quality of life. Emphasized the $1.7 trillion in new regulatory costs imposed on the economy. Asserted that the administration's policies have destroyed the American Dream for many.
  • Ranking member Melanie Stansbury countered Republican claims by stating that the U.S. has among the lowest inflation rates of industrialized countries. Credited the American Rescue Plan and other legislative achievements for stabilizing the economy post-pandemic. Accused Republicans of using the hearing as a political platform to advance former President Trump's agenda. Defended the administration's investments in infrastructure, manufacturing, and healthcare.
  • Representative Nick Langworthy criticized the administration for attacking consumer choices, specifically regarding household appliances and vehicles. Questioned witnesses about the affordability of electric vehicles and the impact of appliance regulations on utility bills. Expressed concerns over mandates favoring electric vehicles despite high costs.
  • Representative Shontel Brown highlighted the dire state of the economy and public health at the end of the Trump Administration due to COVID-19. Praised the Biden-Harris Administration for significant legislative achievements that have led to economic recovery. Emphasized the creation of 800,000 manufacturing jobs and investments in infrastructure. Questioned Mr. Duke on the potential negative impacts of proposed tariffs by former President Trump.
  • Representative Russell Fry pointed out the migration from high-cost states like California to states like South Carolina with lower regulatory burdens. Discussed with Mr. DeVore the negative effects of California's regulatory environment on cost of living. Criticized the administration's energy policies and emphasized the need for energy independence.
  • Representative Ro Khanna addressed Dr. Winfree regarding his contributions to Project 2025 and its recommendations for the Federal Reserve. Raised concerns about proposals to eliminate the Fed's dual mandate of promoting maximum employment and stable prices. Questioned the potential impacts of such policy changes on the economy.