WASHINGTON – After hearing from small businesses across Iowa over the last two weeks about the inflation and supply chain challenges they face, U.S. Senator Joni Ernst, R-Iowa, questioned Small Business Association Administrator Isabel Guzman about the Biden administration’s policies that have contributed to the crisis and asked how they plan to address it.
Ernst brought the voices of the Iowa small businesses she’s heard from to the Senate hearing today. She described “hidden value-added tax” and other significant challenges so many Iowa small businesses face due to skyrocketing inflation and supply chain issues under President Joe Biden.
She pointed out that the most recent Consumer Price Index (CPI) showed that prices increased 8.5 percent over the last 12 months, making it the most significant year-over-year increase in the last 40 years. At the same time, the Producer Price Index increased by 11.2 percent, Ernst said, indicating that most small businesses are experiencing increasingly diminished margins in real terms as the inflationary crisis continues.
Earlier today, Ernst released a video featuring testimonials from Iowa small businesses who are feeling the pinch from inflation and supply chain challenges:
Ernst introduced the PRICE Act, which would require any federal spending bill from Congress to include a report on how it will impact inflation for the American people.
Ernst also led a bipartisan effort to replace Russian oil with clean, American-made renewable fuels available right now—creating jobs, lowering gas prices, and reducing dependence on our adversaries.