President Biden Pushes More Spending To Boost Economic Recovery

As stocks dropped Monday over fears about inflation and the rise in COVID cases, President Biden urged Americans to support his infrastructure plans, arguing they will sustain and build upon the economic recovery made during his first six months in office.

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The S&P 500 was 1.9% lower in morning trading, after setting a record high just a week earlier.

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"We've gone from 60,000 jobs per month to 60,000 jobs every three days – more than 600,000 jobs per month since I took office," he said. "More than 3 million new jobs, all told."

The president argued the nearly $1 trillion bipartisan infrastructure bill and Democrats' more than $3 trillion human infrastructure plan will drive down prices and bring more Americans back to work.

"It breaks up the bottlenecks in our economy," the president continued. "Goods get to consumers more rapidly and less expensively. Small businesses create and innovate much more seamlessly. If we increase the availability of quality, affordable childcare, eldercare and paid leave, more people will enter the workforce."

Senators haven't reached final agreements on either of the infrastructure bills but Senate Majority Leader Chuck Schumer plans to hold a procedural vote tomorrow on the bipartisan plan.

The president said the infrastructure proposals would address current supply chain disruptions and reduce inflation. Republicans have argued that spending more would increase it.

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The Federal Reserve chair told lawmakers that high inflation over recent months is driven largely by temporary factors.

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"Our experts believe, and the data shows that most of the price increases we've seen were expected and expected to be temporary," President Biden said. "The reality is, you can't flip the global economic light back on and not expect this to happen."

The president said his administration will keep an eye on signs of long-term inflation. He also implored Americans to get vaccinated against COVID-19, saying the U.S. economic recovery hinges on ending the pandemic.