Inflation is affecting everyone in this country, especially those of us who live in so-called “flyover” states like Wyoming and Missouri. Families are forced to make difficult decisions about what to buy at the grocery store, what to pay for each month, and what trips to take, if any. On average, inflation costs Wyoming residents more than $9,900 a year, and Missourians $8,900. The Congressional Budget Office (CBO) has confirmed that inflation in rural areas – most of which we represent – is 130 percent of rural areas. Inflation is hurting Americans’ finances, and at the core, inflation is a tax on rural Americans and the poor. Not a day goes by that we don’t hear about it from the villagers.
The Federal Reserve is doing its part to try to fight deflation, but despite inflation and steady inflation — up to 3.75 percent so far, the fastest increase in 40 years and greater than the previous 15 years combined — deflation continues. . This money has a long career because almost one third (29 percent) of all the money that is used in the economy today was created since February 2020. The high interest rate so far has not had much impact on the low inflation, but they have a big problem. affect the housing market, as families are being sold on the market. The average 30-year interest rate is 7 percent, double the average rate a year ago. Americans are also now faced with the problem of not always being able to find the things they need and paying high prices when they do.
One of the main causes of the rising cost of living is Congress. By early 2021, Congress had already spent nearly $4 trillion since the outbreak began on the response. The CBO warned that no more federal stimulus is needed. Ignoring these facts, in March 2021, Democrats chose to add $2 trillion to that total through the American Rescue Plan Act, even though there was more than $1 trillion in unused COVID funds left on the books. Democrats should have known that their spending spree, inflation would affect our economy. However, instead of heeding the warnings and focusing on the relief that is being assessed and reducing the amount of money that the epidemic has reduced, many Democrats in the Congress have used the reason of the epidemic to continue spending the money that the country can afford, and to increase the economy.
Congress must act to reduce government spending. Since President Joe Biden took office, government spending has increased by $10 trillion over what was expected at the beginning of his presidency, which was the highest in the first 20 months of the presidency. Big, all-encompassing bills that no one has or takes the time to read or laws that simply maintain the status quo won’t cut it. Congress needs to stop fueling inflation and stop throwing unlimited money at the crisis; it must carefully consider where to spend Americans’ hard-earned tax dollars.
By cutting spending, Congress can send a strong signal that it has heard the concerns of the American people and that it is important to keep inflation under control and control Washington. Recognizing that both Republicans and Democrats are responsible for our current $31 trillion debt, the last 20 months of one-party Democrat rule in Washington has broken the record for the largest debt increase at $3.4 trillion. While we will fight the efforts of Washington Democrats and the White House to use the coming lame duck phase as an opportunity to raise more money before handing the congressional leadership to the Republicans, when the Republicans take control of the Congress we must focus on the economy. and get our economy back on track.
It’s time to stop spending money we don’t have on things we can live without. We must use every tool at our disposal and every opportunity that comes our way — including the next time Congress is forced to deal with the debt — to deal with the inflationary pressures that President Biden has created.
Every American is making tough spending decisions right now, and it’s time for Congress to do the same.
Cynthia Lummis is the senior senator from Wyoming. He is a member of the Senate Banking Committee. Jason Smith represents the 8th District of Missouri and is a member of the House Budget Committee.
