Greg Fulton: It’s inflation, stupid

When Bill Clinton was running for president in 1992, his chief political strategist was James Carville. Carville presented himself as a good old country boy from Louisiana, but really was one of the sharpest and best political minds in the country.

Carville understood politics and had the pulse of the public. He realized that the issue foremost on the minds of many voters at that time was the economy, which was then mired in a recession with high unemployment. As part of his efforts to energize Clinton campaign workers and have them focus their message on the economy, he came up with a catchy phrase: “It’s the economy, stupid.” While it was intended only for internal campaign staff, the phrase caught on and became an informal slogan for the Clinton campaign.

If Carville were running a campaign today, he might be suggesting a similar slogan: “It’s inflation, stupid.”

Our nation’s current inflation rate is 8.3%, the highest rate in over 40 years. This past summer, Pennsylvania Treasurer Stacy Garrity testified at a hearing that “people are paying $3,000 here more on food and gas. They are not putting that money toward other things. They are not spending that $3,000 on entertainment and clothes. They are not spending that money on your home do-it-yourself projects.”

Candidates running for office this fall need not spend money on an expensive poll to see that inflation is by far the top concern of residents of the Keystone State. They merely need to knock on any door in a middle- or lower-income neighborhood or ask anyone leaving Giant Eagle after they have bought groceries.

People watching current campaign ads might wonder whether some candidates are tone deaf or living in an alternate universe. They see ads focusing on everything but inflation and the economy. For some incumbents, this approach may be understandable because they may have contributed to our inflation problem.

While issues like abortion, border security, gun laws, global warming, public safety and infrastructure are concerns, they pale in comparison to inflation. For the 15.4% of Pennsylvania’s population who are retirement age (65 and older) mostly living on fixed incomes, the 12.1% of those in the state below the poverty line and the 46% of households categorized as middle class, inflation is by far the top issue in this year’s election. They may care about the other issues, but inflation is a clear and imminent threat to their well-being. Many households are having difficulty making ends meet and find themselves falling further behind each month as costs for groceries, gas, housing, utilities and more continue to rise.

Adding to the pain, and a direct result of efforts to combat inflation, has been a significant increase in interest rates by the Federal Reserve, which raises the cost for all those needing personal or business loans. These higher interest rates have further made the dream for many of owning their own home less likely.

For the business community, especially smaller businesses, inflation ranks as the No. 1 issue. They are playing catch-up as prices for materials and services spiral upward. Business owners face the challenge of budgeting in an environment where the cost and availability of materials and services even six months from now may be significantly greater. It’s tough to prepare bids, set prices or even guarantee a delivery date.

At the same time, businesses are struggling to keep existing workers and recruit new ones, as employees demand higher pay to keep pace with inflation.

While international factors play a role in inflation, state and federal legislators have done their part to fuel it. Businesses face increasing costs to comply with new regulations, mandates, rules and standards, which translates to higher costs for new homes, cars, appliances and more. Sometimes the benefits associated with new regulations are outweighed by the increased costs.

In the weeks leading up to the election, ask candidates about their ideas to bring inflation under control. What will they do to address the problem? And, if they happen to ask you what your primary concern is this year, please feel free to say “it’s inflation, stupid.”

Greg Fulton, a New Castle native living in Denver, is president of the Colorado Motor Carriers Association.