This issue is important to Americans because it is affecting their everyday lives. “Americans are confronting more expensive food, housing, and fuel…” (The New York TImes) Food, housing, and fuel are the basic necessities of life and even help us stay alive. Food provides nutrition and energy to our body and we can’t live without it, our house gives us a roof over our heads and provides shelter in cases of unfavorable weather. Fuel gives power to our cars which help us get around in our everyday lives (For ex. School, work, grocery stores). One core constitutional principle that relates to inflation is listed in the Preamble and is one of the main goals of the Constitution. “...insure domestic tranquility, provide for the common defense, promote the general welfare,...” (Constitution, United States) Things like housing, food, and fuel are part of the general welfare category and impacts citizens widely and helps them stay alive.
The topic of inflation is important to me personally because inflation takes away the minimal chances of fulfilling dreams. Since inflation is making everyday needs more expensive, it’s adding unnecessary expenses to so many already. Since these expenditures are unavoidable, there is no escape from them. This is especially true for middle and lower-class families. They try to avoid so many things and sacrifice their happiness and luxury just to save enough money for future expenses, and this just adds a stress factor to their lives. Some examples of basic necessities whose prices have gone up include milk (was $1.50, now $3.50 per gallon) and fuel (was about $1.00, now about $4.00 per gallon). I belong to a middle class family and so I know what it feels like to pay extra, unnecessary money for things that are of daily use.
The Federal Open Market Committee (FOMC) is responsible for controlling inflation in the U.S. It sets monetary policy, which is the Fed’s goal, to insure stable prices and maximum employment. A monetary policy is a policy adopted by the government of a nation to control the interest payable for short term borrowing or the money supply of the nation in order to reduce inflation. “In 1971, U.S. President Richard Nixon implemented far-reaching price controls in an attempt to counter rising inflation. The price controls, though initially popular and considered effective, could not control prices when in 1973 inflation skyrocketed to its highest levels since World War II,” (Investopedia). The price and wage freeze imposed by Nixon couldn’t produce satisfactory results and hence taught future generations to prevent doing the same thing in a similar situation.
The Biden-Harris government has made few plans to avoid the strain on working families. President Biden plans to lower costs that families face and the federal deficit by taking the help of large corporations and the wealthiest Americans to pay their fair share. Another example of a plan is, “Congressional Republicans, led by Senator Rick Scott, have called for a new minimum tax on the middle class – firefighters and teachers – that would mean an average of almost $1,500 less in families’ pockets each year,” (The White House). If saving a dollar or two on products like milk and fuel can save Americans a lot, $1,500 per year is almost like a miracle. These small measures by the government can help middle and lower class families thrive and can let them have a peaceful life. The President has also appointed highly qualified individuals to lead the Federal Reserve and is urging Senators to confirm them without delay. This step towards lowering inflation would help lower the amount of corruption and would ensure that all funds go towards the betterment of American families. To lower the cost of gas and energy, Biden is addressing Russian President Vladimir Putin’s hike at the pump by releasing 1 million barrels of oil everyday from the Strategic Petroleum Reserve for the next six months (from May ‘22). The result of this great plan to bring down gas prices was successful, and to a great extent from June ‘22. “The national average gas price rose seven-tenths of one cent to $3.68 a gallon on Wednesday, according to AAA. That was down from $3.90 a month ago but up from $3.19 at the same time last year. Gas prices peaked at just above $5 a gallon in June,” (The New York Times).
One example of a conservative media source is The Washington Times. One article in the Washington Times reads, “The biggest financial fraud in history is now being inflicted on the American people and others in the form of inflation.” This article directly criticizes the Biden administration by calling inflation the biggest fraud in history. We know that Republicans are considered conservative and democrats liberals. This is a perfect example of republicans criticizing democrats. “Do you find it odd that banks and other financial institutions provide mortgage loans to millions at an approximately 3% interest rate for 30 years, while the government reports that inflation is over 6% at an annual rate and rising?” In this sentence, it conveys how the government is providing false statistics on inflation rates. This makes the Biden administration look unreliable and not trustworthy.
One example of a liberal media source is The Washington Post. One article in The Washington Post based on inflation reads, “The Federal Reserve has begun to take steps to combat inflation. It can’t create more goods or untangle supply chain snarls, but it can increase interest rates, which it has done three times so far this year. Higher interest rates slow demand and the economy by raising the cost of lending.” Higher inflation rates are a way to limit inflation. This article mentions that the Federal Reserve has increased interest rates three times this year which shows the great efforts of the Biden government to stop inflation.
One example of a liberal news source is The New Yorker. One article in the New Yorker reads, “Last month, the most noticeable developments were the big jumps in the price of energy and food, both of which can be traced, to a greater or lesser extent, to disruptions caused by the war in Ukraine.” This article kind of puts the blame of inflation on the Russian-Ukraine which was what the Biden administration would also do. They believe that the increase in essentials were caused by the war and they are taking great measures to decrease inflation
The government, while tackling the issue of inflation, should act as Americans before Republicans or Democrats. This issue can disrupt someone’s life by ending them on the streets. In my opinion, the three governments should keep a close eye on businesses in America and prevent them from charging products at an unusually. High rate. These small measures will make a difference in the life of every American.
Author: Srijan Agarwal
Works Cited
Cassidy, John. “What the Latest Inflation Figures Mean for the Economy.” The New Yorker, 13 April 2022, https://www.newyorker.com/newsletter/the-daily/what-the-latest-inflation-figures-mean-for-the-economy. Accessed 20 October 2022.
Fowers, Alyssa. “What is causing inflation: The factors driving prices high each month.” The Washington Post, 26 July 2022, https://www.washingtonpost.com/business/2022/07/26/inflation-causes/. Accessed 20 October 2022.
Kramer, Leslie, and Robert C. Kelly. “How Do Governments Fight Inflation?” Investopedia, 22 September 2022, https://www.investopedia.com/ask/answers/111314/what-methods-can-government-use-control-inflation.asp. Accessed 20 October 2022.
Simonetti, Isabella. “U.S. Gas Prices End Streak of Declines Just Short of 100 Days.” The New York Times, 21 September 2022, https://www.nytimes.com/2022/09/21/business/gas-prices-decline-streak.html. Accessed 20 October 2022.
Smialek, Jeanna. “How Does Raising Interest Rates Stop Inflation?” The New York Times, 21 September 2022, https://www.nytimes.com/2022/09/21/business/interest-rates-inflation.html. Accessed 20 October 2022.
Smialek, Jeanna. “Inflation in the U.S.: What You Need to Know.” The New York Times, 11 June 2022, https://www.nytimes.com/article/inflation-us-prices.html. Accessed 20 October 2022.
The White House. “The Biden-Harris Inflation Plan: Lowering Costs and Lowering the Deficit.” The White House, 10 May 2022, https://www.whitehouse.gov/briefing-room/statements-releases/2022/05/10/the-biden-harris-inflation-plan-lowering-costs-and-lowering-the-deficit/. Accessed 20 October 2022.
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