Former House Speaker Newt Gingrich said Sunday that Americans will notice what he called President Joe Biden’s “hidden tax” and predicted the country is “on the edge of a massive inflation.”
“So every person who hears us today, when you go out to fill your gas tank and you notice that you’re getting less gasoline per dollar, that’s a Biden hidden tax,” Gingrich told Fox News’ “Sunday Morning Futures.”
“It will happen with electricity. It’s going to happen with food across the board. We are on the edge of a massive inflation and the Democrats’ answer is print even more money so they get a bad job’s number on Friday and they are saying immediately, ‘Oh, we need to spend another couple of trillion,’ which is exactly the wrong solution if you want the economy to be healthy,” Gingrich said. (RELATED: ‘This Isn’t Monopoly Money’: Ron Johnson Calls Out Unnecessary Spending In Biden’s Trillion-Dollar Packages)
Gingrich said the relationship between government spending and inflation is “a basic rule of economic history” that was a reality in in Rome “and other ancient civilizations.” The former House speaker said that if citizens resist further tax increases, governments make a conscious decision to “make up the difference is through inflation, through cheapening money by printing more dollars in our case by literally cheapening gold and silver coins.”
Gingrich claimed “the result is everybody pays a hidden tax. Now what makes it tragic is the people hit the hardest are the poor.” (RELATED: ‘Creating A Dependency Culture Is Dangerous’: New Gingrich Warns About Biden’s Trillion Dollar Packages)
The Biden administration says the president’s latest spending promise will cost around $1.8 trillion. That is on top of his $2.25 trillion American Jobs Plan and $1.9 trillion American Rescue Plan. Biden claims the spending will be financed through a tax on those making $400,000 or more a year.
Media baron Steve Forbes has also warned that Biden’s stimulus packages will inevitably produce hyper inflation in the U.S. economy.