President Joe Biden admitted consumer prices were too high on Wednesday as he toured the Port of Baltimore and set out how his massive...
President Joe Biden admitted consumer prices were too high on Wednesday as he toured the Port of Baltimore and set out how his massive spending plans would help drive down inflation.
'Everything from a gallon of gas a loaf of bread costs more and it's worrisome even though wages are going up,' he said.
'We still face challenges, we have to tackle them.'
Hours earlier, a new economic report revealed inflation had hit 6.2 percent - its highest level in 30 years.
Some economists have warned that Biden's $1.2 trillion infrastructure bill and an even bigger social spending plan could overheat the economy.
In a speech delivered as the sun set over the water of the port, he had good news for shoppers saying he had secured agreements from major retailers to keep shelves full over the holiday season.
But he said he understood the pain of ordinary families.
'Did you ever think you'd be paying this much for a gallon of gas?' he asked at one point.
His infrastructure plan, he said, would help keep price rises down.
'I'm here to talk about one of the most pressing economic concerns of the American people,' he said. 'And it's real.
'And that is getting prices down, number one.
'Number two, making sure our stores are fully stocked.
'And number three, getting a lot of people back to work while tracking and tackling these two above challenges.'
The visit is the first of many as officials seek to promote the benefits of the $1 trillion infrastructure package, which was passed on Friday after months of haggling.
President Biden acknowledged the pain people faced with high gas prices and inflation during a speech in Baltimore to mark the passage of his infrastructure bill last week
'Everything from a gallon of gas a loaf of bread costs more and it's worrisome even though wages are going up,' he said. 'We still face challenges, we have to tackle them.'
The Consumer Price Index rose 6.2 percent in October 2021 from one year prior - the highest it has been since 1990
For Biden it is a chance to convince voters that his party has delivered on its promises after Democrats blamed poor election results last week on having few achievements to trumpet.
And the setting at Baltimore port carried a message. Biden hammered his point that he was delivering a blue-collar blueprint for rebuilding America, in contrast to his predecessor who famously described the city as a 'rat and rodent infested mess.'
But the administration suffered setbacks earlier on Wednesday as new data showed inflation climbing.
The Labor Department said prices had increased 6.2 percent year-on-year - the fastest pace since 1990.
Inflation worries have overtaken concerns about jobs and pay for many Americans, casting a shadow over other more positive economic indicators.
But Biden said his plan would ease pressure on prices.
'According to economic experts, this bill is going to ease inflationary pressures, lowering the cost of working families. Seventeen - yes seventeen Nobel laureates in economics, wrote a letter to me about 10 days ago saying this is going to affect bring inflation down, not up,' he said.
'Best of all, the vast majority of these jobs that we're going to create don't require a college degree ... this is the ultimate blue collar blueprint to rebuild America.'
He also said he had been working to ensure shelves were full for the holiday period.
'Yesterday, I spoke with the CEOs personally ... of the major retailers Walmart, Target, and the leading freight movers FedEx and UPS,' he said.
'They assured me that the shelves will be stocked in stores this holiday because they signed on at 24/7 as well. They are getting more of their containers off the ports quicker than ever before.'
The Consumer Price Index shows a rise in prices in every category from used cars, laundry equipment, furniture to food
Biden's visit is expected to be the first of many made by the president and his officials as they celebrate the passage of the trillion dollar bill
Biden tours the Port of Baltimore, the 12th busiest in the United States, during the supply chain crisis
The Port of Baltimore, the 14th busiest port in the U.S. in 2019 in terms of the national total, is the nation’s largest port for specialized cargo and passenger facilities
Before his speech he toured a warehouse, stacked with bales of cardboard and farm equipment - tractors, combines and
'Welcome to a union outfit,' he said before chatting to members of the International Longshoremen’s Association.
The port in Baltimore is adding container cranes as well as a 50-foot berth where ships can be unloaded.
Baltimore is also benefiting from grants to upgrade the Howard Street Tunnel, a brick-lined underpass for trains that opened in 1895.
The tunnel would be expanded so that shipping containers could be double-stacked on railcars, making it easier to move goods out of the port.
But Biden kept returning to the pain of rising prices, triggered by consumer demand after two years of pandemic closures.
'More products are being delivered than ever before,' he said.
'That's because people have little more breathing room than they did last year. And that's a good thing.
'But it also means we got higher demand for goods at the same time we're facing disruptions in the supplies that make those goods.
'For the rest that's a recipe for delays and for higher prices and people are feeling it.
'Did you ever think you'd be paying this much for a gallon of gas?'
He referenced people paying as much as $4.50 for a gallon of gas in California.
'That's why it's so important that we do everything in our power to stabilise the supply chain,' he said.
Before his trip, Biden said the infrastructure package would help bring down prices.
'Other price increases reflect the ongoing struggle to restore smooth operations in the economy in the restart: I am travelling to Baltimore today to highlight how my infrastructure bill will bring down these costs, reduce these bottlenecks, and make goods more available and less costly,' he said.
The president added that his Build Back Better plan would offer added relief, with affordable health coverage and prescription drugs as well as cutting taxes for 50 million American.
Baltimore was picked for the way it encapsulates some of the complexities of modern America.
For many its history of poverty, crime and corruption tie it to TV series such as The Wire.
But it also contains pockets of wealth and the city is home to the prestigious Johns Hopkins University.
A White House memo spelled out how Maryland would benefit from Biden's bill.
The state has 273 bridges and more than 2,200 miles of highway in poor condition. It is in line for $4.1 billion for highways and $409 for bridges, according to the memo.
Wednesday's trip to Baltimore kicks off a sales blitz by the president and his administration for the infrastructure plan
The White House also announced that Biden will sign the bill on Monday, in a ceremony that will emphasize work on restoring supply chains.
'And he will reiterate that a large body of experts have shown that these infrastructure investments will help to act against inflationary pressures by making it easier to receive the unparalleled volume of goods that need to be moved after we achieved the re-opening of the economy this summer,' said a White House official.
Improving the flow of cargo in and out of the country has become a top priority for the administration.
The administration has been working with the ports of Long Beach and Los Angeles to relieve supply bottlenecks.
But the spectre of empty shelves over the holiday period, along with rising prices, have been blamed for the president's crashing poll numbers
Wednesday's trip marks the start of a fightback and the president and his team tout what they see as a historic amount of investment.
Officials will travel to red and blue states as well as urban and rural areas.
'A lot of this sells itself because communities never needed to be persuaded that their bridge needed to be fixed or that their airport needed an upgrade or that their ports needed investment,' Transportation Secretary Pete Buttigieg said at the White House press briefing on Monday.
'They've been trying to get Washington to catch up to them. But I do think it's important for us to go out there, especially in communities where a member of Congress or the Senate played an important role.'
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