Texas Border Business
| By U. S. Chamber of Commerce |
| Rising costs are making it hard for American families and businesses to get ahead. The Biden administration and some policymakers are blaming businesses unfairly for rising prices. Why it matters: As former Treasury Secretary Larry Summers said, “Every time a Washington policymaker suggests that this is caused by corporate greed or some such, they are delaying the date at which we will achieve the credibility necessary to bring down inflation with stable employment.” What’s happening: Pandemic-related shocks, a tight labor market, and loose monetary and fiscal policy have limited the supply of many goods while boosting demand. This has created broad-based price increases.When input costs rise businesses must either lose money or raise prices. Bottom line: Let’s address the real root causes of inflation. While monetary policy remains the best tool to fight it, policymakers should also focus on easing regulations, reducing tariffs, and increasing domestic energy production. |
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