Rep. Kerry Benninghoff: We need smart policy to bring down inflation, reduce energy costs

The status of our state and national economy is at the forefront of many people’s concerns as they go out to spend their hard-earned money to purchase the necessities of life.

As such, a realistic assessment of our economic picture today and tomorrow is crucial to understanding where our priorities must lie in how we solve the current crisis.

Frankly, over the last two years, things have gone from bad to worse. Let’s just look at the facts.

Inflation is at a 40-year high at 8.6%.

The price of groceries has increased 11.9%, the largest such increase since 1979 despite buying power having shrunk.

The price of chicken has increased 17.4%, the largest increase ever.

Restaurants the cost to eat at a restaurant has increased 9%, the largest increase ever.

Those using oil to heat your homes, those costs have increased a whopping 107 percent, the largest increase ever.

We also must keep in mind: The price of gasoline and diesel has hit record highs. This is the very product people use to get back and forth to work and the trucking industry uses to move critical product across the country.

On top of that, the price of electricity has increased 12%, the largest such increase in over 16 years.

The cost of rent has increased 5.2%, the largest such increase since 1987

The cost of airfare has increased almost 38%, the largest increase in over 40 years.

Nationally, the first quarter GDP numbers put the American economy on the cliff of a recession at 1.4% negative economic growth.

Just last week, the stock market entered a bear market as the country’s economic outlook continues to decline.

At a recent House Republican Policy Committee hearing, our members were told by a testifier that due to inflation and increased costs, Pennsylvania households will be paying an additional $3,000 this year over last year just to keep pace.

That’s a lot of money, especially for people on a fixed income.

These problems have been caused by too many false props keeping up our economy.

Decisions to use economic bailouts too often, and to too many, have created a phantom surplus in our state budget and drove too many into earlier-than-expected retirement.

What is the solution?

Some would have you believe that we should keep doing what got us here: Giving free money to buoy a problem created by free money that kept people from going back to work.

There is a false belief out there that government money is free. Just like there is a belief that the energy from the plug in the wall just appears magically.

That is not the case. Tax dollars belong to the people of Pennsylvania.

While we believe we should be using that money responsibly, we also believe we need to return that investment in sound ways.

Republicans believe, and we in the House have driven an agenda, that uses what we have to drive real growth and work to reduce energy prices by using the abundant resources under our feet.

In April, we passed an extremely ambitious package of bills to help increase in-state, domestic energy production and transmission.

Those bills would encourage other states to open to pipeline development, open the Delaware River Basin to natural gas exploration and allow natural gas drilling on state-owned property without disturbing the surface land.

Second, we need to drive real growth in our economy and stop using false props to have a paper tiger economy.

There is bipartisan agreement that we need to lower the Corporate Net Income Tax to drive investment in our communities, create family-sustaining jobs, and end brain drain.

We passed a bill to do that.

We also need to help our small business job creators and entrepreneurs recover from their sudden and detrimental shut down during the pandemic.

To achieve that we passed a package of commonsense bills, under Republican leadership, to provide them with tax fairness and simplification that will help get that done.

Together we continue to face significant economic uncertainty.

We need to plan a state budget, and continue our state planning, in a way that reflects the economic realities of today and tomorrow.

Inflation does not need to be where it is, and gas prices can come down.

To achieve those goals, we need to get away from the false props and invest and grow strategically. We need to save for tomorrow and we need to return taxpayer investment in a way that truly grows our economy in a natural and sustaining way.

Rep. Kerry Benninghoff represents portions of Centre and Mifflin counties in the Pennsylvania House of Representatives. First elected in 1996, he currently serves as House Majority Leader.