Fact-checking Christie’s claim that inflation is ‘caused by government spending’
Government spending is certainly a factor when it comes to inflation. But it’s not the only factor.
The 2021 American Rescue Plan Act added about $1.9 trillion to the economy, and economists across the political spectrum say that it spurred inflation. They differ on the precise scale of its impact, with estimates ranging from two to four additional points out of the current inflation rate of about 8.5 percent.
However, none of the experts PolitiFact talked to, liberal or conservative, said Biden’s actions were responsible for all of the inflation. Past government spending, COVID’s disruptions to labor markets, energy prices and supply-chains also played significant roles. Most recently, the war in Ukraine has made a challenging situation worse.
-Analysis by Aaron Sharockman, PolitiFact