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Opinion: Liberals espouse dangerous conspiracies on inflation
09182021 Biden
President Joe Biden delivers remarks on the economy in the East Room of the White House, Thursday, Sept. 16, 2021, in Washington. (AP Photo/Evan Vucci)

A dangerous conspiracy theory from liberals is that Democrats are not causing inflation. Supply vs. demand is the root cause of inflation. So, what is causing inflation? 

Government response to the pandemic is one cause. Conservative-led states tried to protect the most vulnerable while keeping the economy moving. Liberal-led states tended to shut down the economy. You can argue who is right, but I am not aware of significant overall differences in deaths per million people. Shutdowns cause shortages, which worsen inflation. 

Biden reducing oil production in the U.S. not only helped cause inflation but it also may have increased overall CO2 emissions. 

Increases in oil prices increase the cost of producing everything made of plastic, the energy cost of all manufacturing and delivery costs. Shipping oil across the ocean costs more than piping or shipping across the U.S. and the ships produce a lot more CO2. Apparently the appearance of producing less oil in the U.S. is more important than climate change to Dems.

Democrat leaders allowing BLM and antifa to destroy cities and businesses causes inflation. Not prosecuting gangs who steal from companies causes inflation for all of us. Then Democrats bailed out cities, who allowed their cities to be destroyed, with our tax dollars. 

Massive federal spending causes inflation. Jen Psaki said the bills will eventually reduce inflation. The massive giveaway portions will add to inflation. Both sides spend too much money. We are talking about Democrats because they are the ones doing it now. 

Biden increased minimum wages to $15 per hour for federal government contractors. Increases in wages without similar increases in production is inflation. That is good for the individual workers but inflation eats up a lot of the benefit. Paying people to not work also causes inflation. 

It is obvious that our inflation is terrible for poor people and those who drive a long way to work. It is less obvious that it is terrible for people who have set aside money for when we are no longer able to earn a living. For example, 6.8% inflation will cut what you can buy roughly in half in 10 years. Check out the rule of 72. Divide the inflation rate into 72 and the result is how many years it will take for your money to lose half its buying power. 

It took almost a year for Democrats to get us here. It will take time to get us out. Biden could reduce inflation by allowing production of more oil in the U.S. Reducing federal giveaways would also help. Democrats want lower inflation but they do not seem to have much interest in doing what can be done to reduce it.

Mike McConnell