What Is Joe Biden's Plan to Tackle Inflation? Strategy to Curb High Prices

Inflation in the United States is at a nearly 40-year high, with the prices of everything from food to gasoline showing marked signs of increase. People across the country are facing financial hardship as a result.

The prices are down to numerous factors—a tumultuous energy market, a gas price hike due to the Russia-Ukraine conflict, and shortages in supply chains. President Joe Biden has said that "too many families are struggling to keep up with their bills" and tackling this issue is a priority for his administration.

What Is Inflation?

Inflation is a general increase in prices of services and goods in a country's economy. When the general price level of these things rises, the country's currency buys less goods and services leading to a reduction in the purchasing power of the country's money.

Gas prices topping $5 per gallon
President Joe Biden has said that tackling inflation is a priority for his administration. This photo shows prices topping $5 per gallon at a gas station in Washington, D.C. Brooks Kraft

What Is Joe Biden's Plan to Tackle Inflation?

The White House issued a statement saying:

"President Biden has a plan to tackle inflation—by lowering costs that families face and lowering the federal deficit by asking the large corporations and the wealthiest Americans to pay their fair share."

"Congressional Republicans, led by Senator Rick Scott, have called for a new minimum tax on the middle class—firefighters and teachers—that would mean an average of almost $1,500 less in families' pockets each year."

This plan includes lowering the cost of gas and energy by:

  • releasing one million barrels of oil per day from the Strategic Petroleum Reserve for the next six months.
  • calling on Congress to pass clean energy and vehicle tax credits and investments.
  • advancing the strongest ever fuel economy standards for cars and trucks to enable drivers to go farther on every gallon.

The president is also set on lowering everyday costs for American families. The strategy to do this involves:

  • lowering prescription drug and health care costs by fixing the Affordable Care Act's "family glitch."
  • lowering food prices by calling for resources to help American farmers boost domestic food.
  • bringing together business, labor, federal and state governments to address supply chain bottlenecks at ports
  • calling on Congress to invest in lowering the cost of child care and long-term care, saving families thousands of dollars per year. Child care is one of the biggest costs that families with young children face.
  • calling on Congress to invest in building more than one million affordable homes, including through a set of tax credits that have received bipartisan support"