McHenry: American Families and Workers are Hurting, and Democrat Polices are to Blame

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Cmte Financial Services (R)
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McHenry: American Families and Workers are Hurting, and Democrat Polices are to Blame

Washington, Feb 16 -

Today, the House Committee on Financial Services is holding a hearing to evaluate the Emergency Capital Investment Program’s (ECIP) support for Minority Depository Institutions (MDIs) and Community Development Financial Institutions (CDFIs). Unfortunately, Democrats’ reckless agenda has slowed our economic recovery—harming the communities this program was intended to support.

Watch Republican Leader Patrick McHenry’s (NC-10) opening remarks here.

Read Republican Leader McHenry’s opening remarks as prepared for delivery:

“Thank you, Madam Chair.

“More than a year ago Congress created the bipartisan Emergency Capital Investment Program to support our nation’s CDFIs and MDIs.

“The ECIP was designed to provide specific funding and capital to help communities recover from the economic downturn caused by the pandemic.

“Funds have been allocated but not yet delivered. I look forward to seeing the impact this type of program could have.

“Unfortunately, since this bipartisan moment, we have witnessed Democrats’ partisan actions slow our economic recovery. This has disproportionately harmed the very people this program was meant to support. We may never have a good understanding of this program’s effectiveness now.

“But let’s take a step back and look at the bigger picture here.

“Last month, the Bureau of Economic Analysis reported the economy grew at an annualized rate of 6.9 percent for the fourth quarter 2021. Yet, initial estimates from economists show only a 0.7% annualized rate of growth for the first quarter 2022.

“Consumer prices are up everywhere. Just last week we saw a 0.6% rise in prices. Over the last year, prices have gone up 7.5%.

“This is the largest 12-month increase since February 1982.

“So, if your wages have not increased by more than 7.5% over the past year—and I venture to say that it hasn’t for most Americans—then inflation has wiped away any wage gains you’ve made.

“For example, the Social Security Administration increased the cost-of-living adjustment to 5.9% over 2022. For the 70 million Americans receiving benefits, this is a monthly net loss.

“So, what do all of these stats mean? American families and workers are hurting, and Democrat polices are to blame.

“If you don’t believe me, let’s look at a few more examples.

“Until last Monday, the labor force participation rate remained stagnant under this administration.

“Consumer Sentiment fell throughout January, sinking to its lowest level since November 2011.

“Overall confidence in government economic policies is at its lowest level since 2014.

“Oh, and the national debt surpassed $30 trillion for the first time on February 1, 2022.

“We can’t spend our way out of this mess.

“We’re also seeing the impacts of anti-competition regulatory actions, where Democrat policies seeks to control consumer choice, rather than foster a competitive environment.

“Take fintech firms and nonbank lenders. For the unbanked or underbanked consumers, small businesses, and underserved communities, innovative financial products can be a lifeline.

“We should be doing everything we can to promote regulatory clarity for financial institutions and fintech partners to create a more inclusive financial system.

“Last week, the Federal District Court of Northern California affirmed the OCC’s valid-when-made doctrine, further proving the importance of regulatory clarity. This is positive, but more must be done.

“So as we discuss the impact of CDFIs and MDIs, we cannot lose sight of the bigger picture and the work that remains to return our economy to the record growth experienced before the pandemic.

“I yield back.”

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