Senator Mike Rounds (RS.D.) Sunday pointed to news that the economy has contracted in the past two quarters and wages have not kept up with inflation, adding that Americans will soon have “severe economic problems”. said it was possible.
“We believe what you’re actually seeing could be a harbinger of what’s to come,” Round told host George Stephanopoulos on ABC’s “This Week.” You’ll find big companies like these are starting to hire fewer people.”
Inflation hit its highest level in 40 years, but two straight quarters of negative gross domestic product suggest the US may be in recession.
Still, 528,000 jobs were added in July and the unemployment rate fell to 3.5%, continuing the healthy trend of job growth and bucking the negative outlook. The Biden administration has pushed that message to suggest the US is not in recession.
Sunday’s round said strong job growth was a good sign, but stressed wages have not kept up with inflation.
“I don’t think it’s necessarily possible to say that this isn’t a sign that we’re probably going to have some serious economic problems soon,” he told ABC. “I hope we are building a way out of the recession, but we cannot do that by raising taxes.
The senator also told Stephanopoulos that if Congress passed the much-anticipated inflation-cutting bill aimed at increasing taxes on the wealthy and corporations, “Americans will feel the consequences.” .
“What you’re going to see is a normal American family really seeing what happens every time we put a new tax on our economy,” he said. , they say it’s in the big companies, but when the big companies raise their prices, they tell it all.”
“So, from our perspective, these tax increases will happen soon and Americans will feel it,” he added.