From Inflation to Immigration: Essential Policy Debates for the Upcoming Election
Very soon, we will be voting again and, once again, there are a lot of economic and science issues that each voter will have to weigh in on their choice of who to vote for. Here are some of them:
Inflation
The question is what policies or problems have caused the inflation we are facing now and what are the best policies going forward? There are several causes. First, the federal government has been spending a lot of money, including trillions on the American Rescue plan and the Inflation Reduction Act. That’s the demand side of the equation (when there is more demand for goods than supply, prices rise). Larry Summers, an economist, had warned that trillions of dollars of spending would fuel inflation. Also, we had a pretty large increase in spending on the COVID-19 crisis. There was also a backlog of supply of both goods and workers which caused prices to go up. Russia’s invasion of Ukraine led to rising oil prices and sanctions which has limited supply. And finally, the Federal Reserve supplied too much money in too short of a time.
What Policymakers Shouldn’t Do:
Don’t raise prices on imported goods (i.e., tariffs) and don’t try to suppress prices by price controls. The first results in much more inflation and the second results in shortages, the same kind we saw during COVID.
What Policymakers Should Do
I’ll leave that to macroeconomic experts, and I am not one. Clearly, we want to stabilize the money supply, make sure the oil supply catches up to demand, and cut back on government spending, which will also help us reduce the enormous interest rates we pay on an unsustainable debt.
Immigration
Immigration authorities say that between 7 million and 9 million illegal, undocumented aliens have crossed the U.S.-Mexico border in the last three plus years. Although they have helped to fill supply for some jobs, they have also put tremendous strains on local economies.
What Policymakers Shouldn’t Do
As the old joke says,
Patient: “Doctor, it hurts when I do this.”
Doctor: “Don’t do that.”
What Policymakers Should Do
Article II of the Constitution requires the President to be responsible for the execution and the enforcement of the laws created by Congress. The U.S. Code's Sections 1325 and 1326 make it a federal crime to enter or reenter the United States without authorization. Pretty clearly, policymakers should enforce the law. Also, look to improve legal immigration.
War and International Relations
This issue is getting more complex. We are supporting Ukraine in their war against Russian aggression and Israel in their battle for survival of their state that has existed since 1948. Meanwhile, Iran is about to get nuclear missiles and has been supporting terrorism (including Hamas and Hezbollah) and China has become a more aggressive competitor.
What Policymakers Shouldn’t do
Be the next Neville Chamberlin who tried to appease Hitler and the Nazi regime in the 1930s.
What Policymakers Should do
Protect the American homeland, be true to our allies—consistently, and continue to build coalitions that will defend against aggression and work for peace.
Taxes
Are they too high or too low? Clearly, we need taxes to help reduce the debt and to pay for wars and social programs.
What Policymakers Shouldn’t do
Because of inflation, most people have seen their standard of living go down. Now is not the time to raise taxes.
What Policymakers Should do
One thing that is desperately needed is to simplify taxes. That is one of the biggest concerns for small businesses.
Health Care
Prevention is a bigger problem than care and insurance. Obesity leading to chronic disease is the number one problem in prevention.
What Policymakers Shouldn’t do
Don’t call it a disease and don’t say we should accept it.
What Policymakers Should do
The answers involve drugs, surgery, and behavior, including diet and exercise. Maybe this should be a medical specialty.
Crime
We see more crime on campuses and in some cities.
What Policymakers Shouldn’t do
Ignore or accept it.
What Policymakers Should do
We have had 4,000 years of experience since the Sumerians, summed up in Dostoevsky’s Crime and Punishment: punish criminals.
Other issues
What to do—If they can’t be shoved down to the states, I’ll go with the Muppets on this one. “What do you get when you combine an elephant and a rhino—EllifIknow.”