Inflation concerns should be placed in context

Published 1:30 am Saturday, November 5, 2022

Politicians talk about inflation as if it is all bad. If you are fortunate to own a home, you’re a double winner, as the value of your home increases and the value of your mortgage decreases. Anyone who owes money at a fixed rate benefits from inflation. Social Security and the IRS are adjusting for inflation. Medication will cost less since legislation now will allow Medicare to finally negotiate prices as do the Veterans Administration and every other country.

Congress has passed legislation with minimal Republican support boosting the economy and encouraging manufacturing that has resulted in record job growth. With the the tight job market, wages and benefits have increased, often for essential workers, which most would see as good, but does add to inflation.

Another reason why things cost more is corporate profit. For example, the World Bank cited that oil and gas companies have posted pure profit of $2.5 billion daily for the past 50 years. (Why do gas prices go up quickly when OPEC cuts production and then come down very slowly?) Gasoline in California cost $2 more per gallon than in other states, but only 85 cents is explained by regulations and higher fuel standards. Shipping companies taking advantage of supply chain issues, have posted six times the profit than before the pandemic.

Hopefully voters will understand that inflation and high gas prices are world-wide and lower in the U.S. than in other countries.

Hans Dankers

Monroe