An inspector general's report released Thursday that estimated $45.6 billion in unemployment benefits fraud was committed during the COVID-19 pandemic, and other reports of misspending allocated funds could be "the tip of the iceberg" and point to lessons about what not to do in the event of a similar emergency, Rep. Warren Davidson, R-Ohio, told Newsmax on Saturday.
"Don't close the economy," Davidson told "The Count." "Don't deem some people nonessential and others essential, and also don't put money out there with no strings attached."
The good news is, though, many of the funds had clear guidelines, and Congress has an inspector general to keep track of the money, but still, the House Oversight Committee in Congress will focus on the administration's role in keeping people accountable, as well as states, Davidson said.
Meanwhile, Davidson said he is glad to hear Federal Reserve Chair Jerome Powell admitting inflation is growing and how it is being felt.
"People are working for 12 months and at 8.3%, so they're getting 11 months pay. The reality is that some people aren't even getting that for four years of work," Davidson said.
But, he added, "we knew when we started spending all this money, more than anyone would even lend us, you're going to eventually have inflation. That's why we created the Sound Money Caucus.
"We called it out for a long time, and finally, now it's here. It's time to turn some of this spending off, and unfortunately, you see many of my colleagues just saying that the cure for inflation is even more government and more spending."
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