“Either Jack Bergman doesn’t understand the basic economics of inflation, or he’s intentionally misleading the public for political gain. Both are beneath the dignity of his office.” — Dr. Bob Lorinser
Times are tough for many in the district. If you can afford it, will you contribute today to Dr. Bob Lorinser’s run for Congress so he can advance real economic solutions for hard-working Americans?
WASHINGTON, D.C. — Serious problems require serious solutions, and we need a leader at the helm who is more focused on solving problems than toeing the party line or exacerbating the divide. This week Rep. Jack Bergman took to social media to mislead the public about the causes of worldwide inflation.
“Record grocery and gas prices,” he said. “Highest illegal border crossings in history. Skyrocketing inflation. The Democrat-led Congress and President are derelict in their duty to the American people.”
Dr. Bob’s Post:
This is a very serious problem. Rising costs of goods and services are especially difficult for rural America and hard-working, middle-class families. However, if we hope to combat inflation, we need to understand it. So, let’s look at the facts.
The U.S. has experienced eight inflation spikes since 1940 greater than 6%, five of which were related to oil.
20% Post-WWII removal of price controls, supply, constraints, and penned-up demand
10% Korean Conflict
7% Late social expansion effect from Medicaid and Medicare;
12-15% Oil shocks
6% Iraqi invasion of Kuwait
6% Gas prices spike
America addressed the problems and recovered each time. We will again. We all know it’s painful, but we will make it through it. My opponent frequently states it’s “Biden’s inflation.” The current issue is a worldwide economic phenomenon. It is our inflation. Energy, food, and housing are the major concerns for all of us.
USA - 9 - 10%, Compared Worldwide
What is causing inflation?
Inflation has multiple causes; many are linked to the pandemic.
Consumers have been flush with cash. Savings from government stimulus programs — programs passed and championed by both Republicans and Democrats for the past several years.
When the economy opened back up, it inevitably got overstimulated. Labor shortages and changing priorities of the workforce resulted in higher wages and labor costs.
Persistent supply-chain disruptions and transportation issues created costly delays and a rise in the cost of goods. This is basic supply and demand.
Russia's invasion of Ukraine significantly affects food and energy prices.
China's ongoing economic shutdown is a significant contributor.
Inexpensive borrowing and greed also play factors. Price gouging is real, and corporations are making record profits at the expense of the consumer.
The unfortunate cumulative result is higher inflation. My simple summary of the current USA situation:
2% - Baseline natural, expected economic growth
2% - COVID-related disruption
1-2% - Monetary overstimulation related to the pandemic from the current and previous administration's efforts to address COVID-19
1-2% - Russia's invasion of Ukraine
1-2% - Other issues
(Avian Flu, African Swine Fever, food disruptions, extreme weather events)
What can be done?
My opponent wants to blame someone and disregards the facts, offering no meaningful solutions. Unacceptable.
Combating inflation and advocating for economic growth requires leadership and compromise from both sides. The American people deserve better than for us to make this a partisan problem.
We must define the problem, obtain the facts, look for solutions, and act. Work together and be honest. Nothing will be quick and easy, and we must manage our expectations. Pointing fingers and playing a blame game diverts energy and resources away from real solutions.
Experts have developed various effective measures to combat the problem, and it's time to look at different approaches to problem-solving and truth-telling. To start, addressing the root causes of inflation will mitigate its effects.
Either Jack Bergman doesn't understand the basic economics of the situation, or he's intentionally misleading the public for political gain. Both are beneath the dignity of his office.