Editor: I think many people take for granted what they think they know about economics and inflation. I write this letter more as an exercise of asking questions and not simply to buy into soundbites, catch phrases or campaign slogans.
It seems as members of congress, from both parties, the president, and the media outlets seem to be obsessed with getting out public opinion poll results that fit their interests. One of the common topics discussed, or mentioned is inflation, especially related to food and gas prices. Analysts suggest that economic woes usually hurt the majority party and the president leading up to a midterm election and even in a general election.
Setting aside political agendas and trying to be as neutral as possible I think voters might want to think about these questions, especially they have an opportunity to meet or contact those who are running for public office.
1. What does the most recent “anti-inflation bill” passed by Congress and signed into law by President Biden really do to combat inflation, especially related to food and daily services?
2. What are Republicans offering as a plan to combat inflation, other than lowering taxes?
3. Do people really know what causes inflation?
4. What is the role of consumers that increase or decrease inflation?
5. What is the role of the private industry on increasing and decreasing inflation?
6. Do most people understand how increasing interest rates by Federal Reserve impacts inflation? If not, why not?
7. What did the corporations do with the money they saved after the Republican controlled Congress and, at the time, President Trump provided them by passing the “Tax Reform Bill”, in 2017? Did they increase the quality of products and services? Did they increase wages of their workers, or just provide bonuses and retirement parachutes for management? Did they lower the prices of the products and services consumers buy?
It is easy for voters, especially those with legitimate grievances blame government for inflation, but implied in Questions 3 to 6, maybe we need to understand the role various groups play with increasing or decreasing inflation.
8. What are businesses, especially mega-corporations, doing to help lower inflation?
9. Is it too much to imagine mega-corps developing a new business model where profits were not priority, and announced, “We will not increase prices even if our expenses increase. We are willing to show lower profits for the next few quarters in order to make our products and services affordable for consumers.”?
Lastly, maybe it is time for the US consumer to reconsider how much they consume every year, and start putting more away in savings. Decreasing demand, might be difficult for some, but we shouldn’t ignore how consumers play a role when it comes to inflation.
— A.J. Jarrett, via letters@sentinelcolorado.com
I can’t wait to see our resident geniuses try to answer these questions. When talking about interest rates and inflation, one must always consider the role of the World Bank. Just know that number 9 is anti-capitalist, and could very well be considered un-American. And we must always keep in mind also that inflation and rising fuel prices are worldwide problems that are not affected by the United States government.
Another question: with $15.00 hamburgers, $20.00 pastas, $8.00 beers, and $25.00 chicken breasts, and built in 18% tips and ‘back of house’ fees, restaurants are trying to recoup their Covid losses. Once they do this (minus the dollars they received from state and federal funds), will they lower their prices so that average people can enjoy a meal out again?