WASHINGTON (TND) — As the economy and out-of-control inflation affect all Americans, some lawmakers are warning the worst is still ahead.

Prices jumped 7% over the past year, the fastest pace in nearly 40 years. Since the beginning of the pandemic, Washington has spent $4.9 trillion in COVID stimulus. Sen. Rand Paul, R-Ky., argues it’s monetary policy that has led to rising inflation.

“It's important for people to know that inflation comes from government debt. Then the government pays for its debt by printing new money," Paul said to The National Desk’s Jan Jeffcoat. “Imagine that we doubled the money supply. You say, ‘Oh, this is great, I have all this extra money.’ That money chases the goods, raises the prices and so we're paying for it now.”

According to Paul, the inflation Americans are experiencing now is a result of “last year borrowing.”

“We borrowed about $3 trillion last year. We'll probably borrow $3 trillion this year, and that borrowing leads to more inflation. So my concern is that this can get out of control,” said Paul.

According to a recent report by Paul, 71% of households making under $40,000 a year are facing economic hardships from inflation.

“If you make $28,000 a year, obviously, the price is going to hurt you more than somebody that makes $100,000 a year. So what we have to realize is that inflation is disproportionately hurting the working class and the poor,” said Paul.

45% of small businesses have had to take out a loan to cope with inflation, according to the report.

“The lockdown crippled our economy. We're still recovering from that,” said Paul. “My fear is that as inflation takes hold, or if it should spiral up, we will get what happened in the 1970s when the economy comes to a sort of a grinding halt.”