Grace Mattern, a writer, artist, and social justice activist, lives in Northwood.
A recent New York Times/Siena poll showed a larger share of voters now rank economic concerns as the most important issue facing the country. Republicans are gaining more support from independent voters as they hammer the message that inflation is the fault of Democratic spending policies and support for wage increases.
What if voters understood that blaming inflation on Democratic policies is another lie and instead learned the truth about inflation?
According to Robert Reich, Labor Secretary under President Clinton and Professor of Public Policy at Berkeley, inflation is the result of large corporations using the smokescreen of inflation to rake in profits. Prices aren’t rising because corporations need to pass along their own increased costs for supplies and wages. Corporations are raising their prices to increase their profits.
Corporate profits are at a 70-year high. Last year was the most profitable year for American corporations since 1950. This truth undercuts the message that higher wages for workers and spending by the Democratic Congress are the cause of inflation.
For most American workers there hasn’t been a real wage increase in 40 years. Over the last year wages for workers grew 5.6%, but prices rose 8.5%, meaning that workers actually got a 2.9% pay cut. Meanwhile, billionaires became $1.7 trillion richer during the pandemic.
The Federal Reserve is trying to slow down inflation by continuing to raise interest rates. But that’s not going to work if corporations are allowed to continue their practice of price gouging. While Republicans are using inflation as a core message to defeat Democrats in the upcoming midterm elections, they have no plans to limit the profits of corporations. Democrats do.
The Inflation Reduction Act passed by Democrats in Congress actually supports workers and families. The act is designed to create clean energy jobs, imposes a 15% minimum tax on the country’s largest and most profitable corporations and lowers the costs of healthcare. Additionally, the act will lower the federal deficit by $238 billion over the next decade, largely by making the tax code fairer and insuring that billionaires and corporations pay their fair share in taxes.
In September, President Biden warned oil companies not to raise prices as a result of hurricane Ian interrupting oil production in the Gulf of Mexico. “Do not – let me repeat, do not – do not use this as an excuse to raise gasoline prices or gouge the American people.” And on October 19, Biden released 15 million barrels of oil from the strategic reserves, again warning oil companies not to use profits to buy back stock but to increase production to keep prices down. “Families are hurting,” he said, with gasoline prices squeezing their budgets.
If you’re worried about the current economic conditions in our country and the continued costs to workers and families due to inflation, voting for Republicans won’t bring you any relief. Voting for Democrats will.