On Tuesday, Issues & Insights posted an article about the Biden administration’s plan to fight inflation.
The article reports:
“Today the Democratic House takes a strong step to bring down crucial kitchen table costs of the pump and grocery store and across the board.”
That’s the transcript of what House Speaker Nancy Pelosi said on the House floor before all but five of her fellow Democrats voted for the “Lower Food and Fuel Costs Act” last week.
Pelosi’s garbled syntax aside, the only thing this bill would lower is the public’s trust in anything Democrats say these days. Despite its title, this bill would expand government but do nothing – repeat, nothing – to lower prices today, tomorrow, or any time in the future.
Among the Democrats’ brilliant inflation-fighting ideas is to create a new meat police to harass the meat industry. Another is to expand a subsidy program for farmers that has already proved ineffective in keeping food prices from skyrocketing. Finally, it would expand the use of ethanol – a plan that even President Joe Biden admits will fail to lower fuel prices.
…The bill also claims to lower food costs by encouraging farmers to adopt “precision farming” techniques that would lower their reliance on fertilizer, the cost of which has also spiked.
Here’s how Democrats on the House Agriculture Committee describe this: “Expanding access to precision agriculture has the potential to reduce fertilizer use and lower costs while also providing resource benefits including clean water and reduced carbon use. It is also a priority to help deal with the water shortages facing growers in much of the Western United States.”
But this program has been around for 26 years and Washington has dumped more than $25 billion into these subsidies. What effect has all this largesse had on food price inflation today? Go to your nearby grocery store for the answer.
The article concludes:
Biden doesn’t believe this will make any difference either. The Washington Post reported recently that while talking up E-15 as a money saver in public, “privately, Biden dismissed the policy as ineffective” and “worried … that it exaggerated ethanol’s ability to cut gas prices and could harm his climate goals.”
There’s also the inconvenient truth that encouraging farmers to turn more corn into fuel will leave less corn for food, pushing up grocery prices. So even if consumers did see gasoline prices fall, they’d pay for it in higher food prices
The Democrats’ bill does have one thing in its favor. It makes it clear that the only way to change the direction of economic policy coming out of Washington is to change the leadership in Washington.
I am praying for an honest mid-term election.