Inflationary policies hit poor hardest

Consumer prices jumped 7.5% compared to last January, with necessities — electricity, gasoline, used cars, many food items – up at astonishing levels. Rents have increased by the highest percentage in 10 years — and vacancy rates are so low across Southern California that it’s nearly impossible to find an available apartment, per news reports.

This inflationary spell — the highest since the end of the Jimmy Carter administration — is wreaking havoc on everyone and especially poor families. Progressive politicians have called for even more government relief and recurring direct payments to Americans, but they fail to recognize the direct connection between profligate federal spending and inflation.

Supply chain problems have contributed to the problem, but that’s not a sufficient explanation. Congress’ Joint Economic Committee cautions that “ballooning government spending” provides “consumers with so much money (subsidies and transfer payments, or easy access to credit via a low cost of borrowing) that demand grows too fast for production to keep up.”

A January report from the Public Policy Institute of California found that low-income families experienced a higher cost-of-living spike than highincome families over the past two years, which isn’t surprising given that they are more dependent on rental housing. The price of new homes has increased at record rates, of course, but most homeowners are staying put.

A follow-up PPIC report explained that Californians’ wages have gone up 5% since December 2020 because of the tight labor market, but that after accounting for inflation “average wages have actually decreased 2 percent over that period.”

It found that boosts in the federal Child Tax Credit and the Golden State Stimulus package enabled low-income residents to keep pace — but that’s only true for those who took advantage of programs. “However, those gains could be wiped out if wage growth stalls, or government spending slows out of concern for high inflation, which could constrain economic growth,” it opined.

We obviously disagree that government spending propels economic growth, but that conclusion highlights a political conundrum. If the Biden and Newsom administrations boost spending to help those in need, that will ratchet up inflation and obliterate everyone’s earnings. At best, the direct payments only helped a subset of Californians.

Yet we continue to hear nonsensical arguments that inflation actually isn’t that bad. “(I)nflation can actually be a good thing for many working-class Americans, especially those with fixed-rate debt like a 30-year mortgage,” wrote CNN’s Allison Morrow. “That’s because wages are going up, which not only empowers workers but also gives them more money to pay down debt.”

The inflation excuse-makers usually focus on one narrow element of the equation. Indeed, higher wages help homeowners pay the mortgage, but $5-agallon gas prices, $30,000 used cars and $10-a-pound beef prices quickly consume that modest advantage. And these pundits aren’t focusing on the long-term costs of excess government spending, as the national debt recently topped an appalling $30 trillion. Like all bills, that one will ultimately come due.

Overall, inflation is hammering all Americans and it will lead to policies — rising interest rates, higher taxes, job layoffs, more aggressive government economic intervention (remember price controls?), reduced public services — that fall hardest on lower-income people. The sooner policymakers face that reality, the sooner they can stop us from following the path of Argentina.

Trump and the GOP

Re “The internal struggle over the GOP’s future” (Feb.

8):

I couldn’t agree more with your sensible editorial. Why GOP leaders have rallied around a proven loser and demagogue like Donald Trump is something I’ll never understand. He’s a true RINO, who would rather a Democrat won an election than a Republican insufficiently devoted to the legend in his own mind that is Trump. His loyalty is only to himself. Trump has the mentality and political savvy of a spoiled child. He’s one of the best things that ever happened to the Democrats, who can now point to Trump’s obvious (except to Trump supporters) failings instead of their own. I’ll never forgive him for losing an election he could have easily won if not for his big stupid mouth and then lying about it.

I’ve voted for every Republican presidential candidate since Barry Goldwater in 1964, but I’ve never seen anyone as self-destructive as this demented loser. If, God forbid, he runs again in 2024, I have every confidence he’ll snatch defeat from the jaws of victory again.

UCLA abuse scandal

Re “UCLA sex abuse payout: $244M”:

The legitimate victims of the UCLA sexual abuse scandal perpetrated by a staff physician and aggravated by various staff members who ignored the victims’ complaints should indeed be compensated for their abuse, but averaging over a million dollars per victim appears to be excessive. It is difficult to ascribe monetary compensation for such crimes, but the awarded monies should primarily be taken from the perpetrators at different levels and only then from university funds, which are dollars derived from taxpayers and individual donors. A similar situation at USC should be treated in the same manner (taxpayers’ monies not involved). Ironically, whereas sexual abuse crime must be punished, recently, our “enlightened” law officials are seeking to minimize just punishment for many other criminal activities, downgrading felonies to misdemeanors, etc.

Newsom’s use of infrastructure surplus

Re: “State’s bridges in need of repair” (Feb. 6):

California has bridge infrastructure needs that requires spending some of the massive surplus accumulated via increases in state tax revenue and federal bailout monies. Instead of reserving some of this surplus for bridge work, Gov. Newsom has prioritized medical care for economic migrants over the safety of all Californians.

This is disgraceful! In addition, the more benefits bestowed on migrants who trespass into our country, the more this is an even greater incentive for single men and families to come to California.

The U.S. involvement in foreign wars to date

The Opinion piece by Jamie Stieman, “Ukraine is not our problem — stay out” (Feb. 6 )is a reminder of the quote, “Those who do not remember the past are condemned to repeat it.” Having lived through the years before WWII, I see history repeating itself. Isolationists like Stieman did not want the U.S. involved in foreign wars. Thus when Hitler invaded Czechoslovakia and Japan invaded China, the U.S. did nothing as it did when Hitler invaded Poland and then the rest of Europe. Consequently, Hitler and Japan perceived the U.S. as a weak nation and eventually attacked our country. Now both Putin and China perceive the U.S. as weak as well as Europe and feel free to start invading neighboring countries. The best way to send a message to Putin is to at least a token force of American troops in Ukraine if only to engage in joint exercises with the Ukrainian army.

Outrageous cost of Super Bowl LVI tickets

Unbelievable. What does the billionaire who owns the joint want to do, pay it off in one game? Who ever heard of $10,000 football game tickets? What happens if the Rams lose, does he refund the unhappy fans money? Goes to show you he’s trying to recoup the over-the-budget cost to build the stadium by making the fans pay. Wow.