The Story of Inflation: Government Dysfunction at its Finest

Pete McGinnis’ Op-ed at Townhall

Last week’s leak of a draft decision from the Supreme Court was an unprecedented break from tradition and trust, but it is sadly emblematic of the state of our nation’s government today. The federal government’s dysfunction continues to degrade public trust in our institutions.

Among the top issues affecting the American public in 2022, there is no better example than inflation to demonstrate the ongoing dysfunction of our federal government. In the early days of 2021, after nearly a year of economic chaos stemming from the global pandemic and government-imposed shutdowns, the federal government passed yet another massive bill known as the American Rescue Plan. It was sold under the guise of distributing vaccines and stimulating the economy. However, the $2 trillion price tag raised eyebrows as the fourth major COVID related legislation in a year, leading many critics to predict it would trigger inflationary concerns. As my group and others have analyzed the spending coming out of the American Rescue Plan, the apparent frivolity of many programs has bolstered assessments of critics that the law’s price tag was excessive. So much of this massive bill is going to long-term spending priorities, and even part of the spending that could arguably be related to the pandemic is stretched out over years.

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