Democrats, Republicans and Unaffiliated can all agree that we are suffering from inflation.
The March inflation measure was an increase of 8.5 percent, driven mostly by food, energy and rent costs.
Politicians are lining up around the inflation issue, because the primaries and mid-term elections are around the corner. The political ads on television always blame the opposite party.
Just for fun, I hold up a mirror to the television screen. It is a wasted effort, but this couch potato form of insurrection makes me feel good.
The real causes of inflation are complex. The imposition of tariffs that was an in-your-face bargaining tactic of the past president only creates pass-through inflationary costs borne by consumers. The pandemic induced shortages which we now call supply chain problems might have been contained if we had stopped denial of the disease.
The war in Ukraine greatly contributes to inflation due to the law of supply and demand. When a commodity such as fuel is in shortage the price goes up and when it is in surplus, the price goes down. We see this inflationary “war tax” at the pump. I will gladly pay it because the fall of Ukraine will embolden Putin to take on other nearby countries. Helping the Ukrainians is not free of cost and risk.
The cures for inflation are never easy and the medicine tastes bad. The Federal Reserve will gradually raise interest rates. Good for folks with savings. Bad for folks with variable rate mortgages or credit card debt. The use of the strategic petroleum reserve to raise supply has already resulted in pump prices coming down. The high cost to fill up makes folks change their driving habits.
Allowing more legal immigrants into our country will help. There are nine million people waiting to enter legally in a massive backlog created by the previous administration. These folks seek economic opportunity and we have vacant jobs for them to fill. The builders of the transcontinental railroad knew this when policy makers allowed Chinese workers to come in. The farmers of America knew this when migrants were welcomed to pick crops.
Now the high-tech companies fill positions with special visa workers.
There are some really stupid ideas being proposed. Reducing gas taxes will not show up as savings at the pump and will hurt the trust funds necessary to maintain and improve our deteriorated infrastructure. Price controls do not control the profiteers. The only impact is that investors move their money to alternate product development.
Here is a suggested cure for the inflation blues: review your spending habits.
Can Nellie Belle last another six months, while the titans of car production catch up on self-inflicted supply chain issues?
Can you beat the nicotine addiction? A pack a day is 40 bucks a week. Those savings alone would far outpace the cost of inflation. You don’t need me to tell you how to spend more wisely.
So, let us all agree that the blame gain does not solve the inflation problem. Individual and collective smart decisions will.
Roger Carlton writes a bi-weekly column for The Graham Star. He can be reached via email, rcarlton57@hotmail.com.