The definition of “insanity” should have a photo of Joe Biden, Nancy Pelosi and Chuck Schumer next to it. Their Democratic policies are the definition of insanity: doing the same thing over and over again and expecting a different result. All of them lived through the early 1980s but obviously have no memory of the experience. Their collective desire to pass “transformative” bills to obtain political wins has set America on an inflationary spiral with a disastrous ending.
My first understanding of inflation came at the age of 8, when my parents bought a home and lamented paying 15% interest on the loan. Even then, I recognized that a brick wall of inflation prevented the American dream from becoming reality.
The economy is overheated. Dumping trillions of dollars into an already overheated economy creates a demand and supply problem that pillages American tax dollars and results in wasteful spending. Yes, we need a long-term infrastructure funding mechanism. But when unemployment is a non-issue, when businesses are closing because they are unable to obtain employees and product, the timing of trillion-dollar taxpayer injections into the economy couldn’t be worse. One of the only mechanisms to slow the economy to a reasonable rate is to raise interest rates. The reason interest rates exploded in the early ‘80s was runaway inflation. Rising oil prices, government overspending and rising wages – the three factors that pushed the general price of goods and services higher. And here we are again.
While COVID-19 had a significant impact on supply chain and the economy, following the COVID bailout monies with more spending doesn’t ease the economic ails of inflation. Such infusions just make a bad situation worse. What will contractors have to pay in wages in order to recruit enough workers to not just bid but build the projects? Generating a high income is great, unless the cost to buy everything outpaces your pay raises.
If the congressional Democrats have their way, their self-imposed inflationary spiral will leave every American with less, not more. Some of us can stomach the infrastructure bill, especially when we need not look very far to find crumbling pavement, failing bridges and crisis level dam rehabilitation projects. But to add – on top of infrastructure – another $1.75 trillion in tax dollar spending will cripple our economy. The Federal Reserve will be forced to step in and increase interest rates. Without access to cheap cash, businesses can’t grow. Housing prices will plummet to account for rising interest rates. So those kids that just spent $300,000 to buy their first house, will find their investment now worth $200,000. The affordable housing problem will get worse, and the folks who lose are the most vulnerable – our elderly and our impoverished. There is no such thing as a free lunch; the hard truth is these Democratic measures are a runaway train on a collision course with the dire consequences of the early 80s.
Tammi Fisher is an attorney, former mayor of Kalispell and host of Montana Values Podcast.