Georgians understand economic pain, why can’t others?

In the lead up to the presidential election, The New York Times decided to outline the Biden Administration’s supposed economic successes:

“The job market has been chugging along, although more slowly [and] overall growth has been healthy.” Despite this, voters don’t hold a rosy view of the economy, which baffles the Times.

“Inflation is basically back to normal. Why do voters still feel blah?,” the Times rhetorically asked. That is a line sure to make every day Americans sigh in disbelief because the answer is so simple. September’s inflation rate stood at 2.4 percent—nearly hitting the Federal Reserve’s goal of 2 percent—but inflation has a cumulative effect on prices.

That 2.4 percent is in addition to prior months’ inflation rates, including the 9.1 percent in June 2022—meaning prices on average are 21 percent higher than in January 2021. It’s like compound interest. So yes, the inflation rate has gone down in a process called disinflation, although I’d wager that most Americans don’t care about the monthly inflation rate. They worry about how much it costs to make ends meet. Those costs have been spiking, and no, this isn’t due to greedy corporations gouging customers like some would have you believe. Businesses are feeling inflation’s pinch just like you and me.

While The New York Times author seemingly struggles to comprehend this, Georgians get it. “Inflation may have fallen, but high prices are still here and weighing down hardworking Georgians every time they go to the grocery store, the gas pump, and so many other places in our daily lives,” Gov. Brian Kemp recently said, and thankfully some relief is on the way.

At a recent press conference, Kemp—flanked by Lt. Gov. Burt Jones and Speaker Jon Burns—announced a new tranche of tax rebates. “The proposed one-time, special refund would mirror previous rebates, returning $250 to single tax filers, $375 to head-of-household filers, and $500 to married couples filing jointly,” reads the governor’s statement.

“Between this latest measure and the previous tax rebates, multiple state gas tax suspensions, homeowner tax relief grant, and acceleration of the largest income tax cut in state history enacted by the Governor and General Assembly, these policies have saved Georgia taxpayers over $6.6 billion.” This is thanks to smart budgeting in the Gold Dome.

“Georgia’s strong conservative leadership and strategic fiscal policies have created a historic $16 billion budget surplus, and we’re proud that we’ve been able to continue investing in everything from healthcare and education to infrastructure and workforce development – all while cutting taxes and saving Georgia families and businesses millions of dollars,” exclaimed Burns.

This is pretty incredible, and while tax rebates won’t fix our country’s economic woes, they can make inflation sting a little less. However, don’t expect the same relief from the federal government. While Kemp has presided over budget surpluses every single year he has been in office and has socked away billions into the state’s rainy day fund, the federal government hasn’t balanced a budget in nearly a quarter century. Our national debt currently sits at an astounding $35.8 trillion, which is more than troubling.

The Times ultimately admits that there are legitimate economic trends influencing Americans’ pessimism over the economy, but they try to pin much of the blame on politics. “Some of the sour attitude boils down to simple partisanship. Republicans tend to be much more optimistic when a Republican is in office. Democrats also tend to be slightly happier when a Democrat is in office.”

I have no doubt that partisanship impacts our worldview to a degree, but the numbers don’t lie. Inflation has wreaked havoc on the economy; unemployment—while relatively low—has been trending upward; the housing market is an unmitigated disaster; college graduates have accumulated prodigious amounts of debt; and federal spending and debt is so unsustainable that it clouds our country’s future.

To be fair, there have been some bright spots in the economy. The stock market has been moving in the right direction and the United States’ GDP is on a hot streak, but there are more than enough indicators to generate some doom and gloom, regardless of political affiliation. In the end, why do voters still feel blah? To quote Democratic strategist James Carville, “It’s the economy, stupid.”