United States President Joe Biden acknowledged that prices are "too high" and is said to be considering invoking a Cold War-era law to address what inflation has caused.
On Monday, the Democratic leader argued that companies should lower prices for their consumers following an 18% increase in costs since he took office. Speaking near the White House, Biden said that the high prices are exacting a heavy toll on families.
US Inflation
United States President Joe Biden acknowledged rising consumer prices and is planning to invoke a Cold War era law to drive down prices of some goods.
The president noted that while they have addressed rising costs, there is still more work. He said that any corporation that has not yet brought their prices down, despite inflation dropping and supply chains being rebuilt, should give consumers a break.
The Democratic lawmaker's remarks come as the prices of some goods in the country, such as food, are expected to decline in the next few months. However, periods of general deflation are rare in the history of the American nation.
Previously, Biden tried to pressure oil companies to take immediate action to lower gas prices. During his Monday address, he also attacked Republicans, noting that they "want to go back to the bad old days when corporations looked around the world to find the cheapest labor they could find," as per the New York Post.
The president continued by saying they are now building the products locally and exporting them overseas. Biden's economic appeals come as American concerns regarding the economy and their finances are at the top of opinion surveys of key 2023 election issues.
The Democrat has unsuccessfully sought to turn the tide of public pessimism by saying that the economy is doing well following the announcement of what he calls "Bidenomics." Earlier this month, a poll of six swing states showed that 81% of voters rate the economy "fair" or "poor."
Republican lawmakers have long blamed Biden's policies for contributing to inflation. This year's study by the Federal Reserve showed that federal stimulus contributed 2.6% toward inflation. Since the president was elected, this is roughly a quarter of the inflation over the typical 2% annual target.
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Cold War Era Law
The White House said that Biden plans to use the Defense Production Act to improve the domestic manufacturing of medicines deemed crucial for national security. According to The Guardian, they will convene the first meeting of the president's supply chain resilience council to announce other measures related to the production and shipment of goods.
The director of the White House National Economic Council, Lael Brainard, said they are determined to keep working to bring down consumer prices. The law in question dates from 1950 and was passed to streamline production during the Korean War. The last time that it was used was in 2021 during the coronavirus pandemic.
The president has authorized the Department of Health and Human Services (HHS) to use powers under the act to enable investments in "essential medicines." According to Reuters, the areas of investments also include "medical countermeasures" that involve supplies that diagnose, prevent, or treat diseases related to chemical, biological, radiological, or nuclear attacks.
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