Lies republicans tell to win — Cost of living

It is well established that, like their leader Donald Trump, Republicans lie to win. Over the years, they have taken special care to mislead people about the economy, in general, and the cost of living, in particular. Now they are taking aim at the new Democratic Presidential nominee, VP Kamala Harris, with Trump claiming that the Biden-Harris Administration caused the cost of living to rise. 

Economists who have studied the rise in the cost of living from 2021 to the present attribute that increase to the most basic of economic laws: supply and demand. More specifically, they say pent-up demand for goods in the post-pandemic era snarled supply chains, while the war in Ukraine and sanctions imposed on Russia, prevented the predictable flow of wheat and oil and led to too much money chasing too few goods - the classic cause of inflation.

Republicans in 2020 and Democrats in 2021 passed necessary bills to counter the job losses caused by the Pandemic shut-down. The good news now is that unemployment is at its lowest level in years, and the stock market has seen all-time highs. The rise in prices has eased. In July 2024, it was 2.9%, the lowest level since 2021. 

Though predicted by many economists, the United States did not go into recession thanks to the sound guidance of the Federal Reserve. 

Despite recent evidence to the contrary, Republicans spread the lie that an independent Fed is not good for the economy. Reuter’s reports that Trumpian advisors propose that the Fed be stripped of its independence, making it beholden to the political whims of a president. They write, “The Federal Reserve must consult with the President prior to an interest rate adjustment. The President should be able to remove the Chair during the term.” 

The government has very few tools to control increases in the cost of living, and the Federal Reserve, through its control over interest rates, is the primary means to do so. Since 1913, one of the most successful strategies the government has had in the fight to restrain the cost of living has been an independent Federal Reserve, led by a Chairman who cannot be fired, which does not need the approval of the President or Congress to make adjustments to interest rates or other lending mechanisms. 

On the other hand, threatening the independence of the Agency would certainly guarantee a higher cost of living in the future.

But the worst lie Republicans tell is that levying up to 20% tariffs will reduce inflation and help the economy.  In fact, Moody’s rating agency estimates that such a trade policy -- adding this massive duty as a minimum on imports from all countries, and upward of 60% on goods from China – would cost the economy 675,000 jobs and worsen inflation. Trump seems to forget that tariffs are paid by US importers not foreign countries.

Looking ahead, VP Harris wants to create an opportunity economy. She pledges a federal ban on corporate price gouging in the food and grocery industries, down-payment assistance of up to $25,000 for first-time home buyers, and an expanded child tax credit. Look at the difference between Harris’ plan and Trump’s.

Here in North Carolina, Josh Stein, the Democratic candidate for governor, wants “more money in people’s pockets.” His platform calls for A Working Family Tax Cut. By reinstating the State Earned Income Tax Credit, more than two million North Carolinians would get an average of $500 in tax credits. By contrast, Republicans haven’t given raises to state workers and retirees to keep up with the cost of living, even though there are more than enough budget surpluses to allow it.

The bottom line is that Republicans lie about who caused the cost of living to increase, what can be done to decrease the cost of living, and how working families can be helped to make ends meet.

The answer is clear: vote Democratic up and down the ballot to rein in the cost of living in NC and help families cope.