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If neither dominant party represents you, consider the Libertarian Party.
Inflation
| The Cause | For Congress |
Did you know?
@ % Inflation Prices Double in 9.06% 8 years 3.5% 20½ years 2.0% 36 years
Are US taxpayers ready for concerted efforts to reverse inflation, via deflation?
HR 5376 – Inflation "Reduction" Act
NAY! This bill does NOT address the causes of inflation. It adds massive, reckless spending for items that will cause more inflation.In the wake of the 2022 mid-term elections I hope this bill is re-legislated (or made void) by the 118th Congress.
IMO the correction from June 2022 is largely due to the removal of Covid lockdowns. It was NOT HR 5367.
Uncontrolled Spending
Rampant federal spending (and its resulting debt) is the chief contributor to inflation. Part of my long-term focus is to reign in federal spending.Beyond this core correction other remedies can be enacted. They are identified below.
Gov't (by design?) is unnecessarily complex, much like a Rube Goldberg machine. Regarding the US economy there are volumes of federal legislation,
rules, and regulations. There is also massive federal bureaucraZy. Central in this complexity is …
The FedThe Federal Reserve System, the Fed, targets 2% inflation and directly influences the Prime Rate.Fed Policy2% inflation is a reduction in purchasing power for every US citizen and resident.This is NOT acceptable. With 2% inflation prices double in 36 years. How does this help citizens, especially the poor and those on fixed income?
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 Inflation made complex by gov't |
Purchasing something for $100 in 2021 now requires $115. This is a 15.3% increase in 2–plus years. Again, how does this help US citizens?And why, under the watchful eye of the Fed, is inflation still at 3.5? 75% higher than the target rate.
Prime Rate — part of Monetary Policy
The Fed also influences the Prime Rate (… via the Federal Funds Rate). The historical rates are informative.
Low rates make money cheap. More (and riskier) loans are granted. More money in placed in the system is … by definition … inflation.Why were Prime Rates artificially low? Is it to cause inflation? I hope NOT.
Scarcity
The absence of a good/service will cause its price to rise. In economic terms, reducing the supply will raise the price.
However, gov't legislation and other federal nudges can cause longer term disruptions.
Any gov't edict that causes scarcity will increase prices.
Since early 2021 the following actions have aggravated prices:
- Stopping federal oil leases
- Shutting down an interstate pipeline
From the House
Again, systematically addressing uncontrolled federal spending will have a calming effect on inflation. This long-term project of successive spending cuts should be undertaken alongside the following courses of action. The federal gov't needs a policy of simply getting out of the way of We The People and our commerce.Additional steps include:
First step, any artificial scarcity caused by the federal gov't should be reversed/canceled. This will open up segments of our economy, especially energy producers.
Second, with the COVID endemic behind us, sovereign states need to stay open. Re-closing states would muzzle small businesses and recripple the nation. Two years after the end of the lockdown aberration … we are reapproaching a more functional economy.
Third, monitor current Federal Funds Rate hike of the Fed to slow inflation. We expect the Fed to use rate increases to slow inflation.
Fourth, call the Fed before Congress and get answers for:
- Why is 2% inflation desired? or acceptable? This doubles prices in 36 years.
- What discussions are occurring and what are planned actions of the Fed?
Fifth, legislate a recurring audit of the Fed – annually or once every two years. The relationship between Congress and the Fed should be corrected.
The Fed is under Congressional authority and subject to congressional oversight.