fbpx

Cost of Living

The H⁠i⁠dden Tax

By: Paul Parisi / June 25, 2024

Paul Parisi

Arizona Grassroots Director

Cost of Living

June 25, 2024

The rising cost of living is an issue that is burdening almost every American. Inflation has become the hidden tax that has been steadily rising out of control for nearly four years.

Now, I’m no economist, but I did start a data telecommunications company that I ran for 20 years before I sold it. My time as a business owner made me appreciate the importance of every dollar and how quickly that value can deteriorate.

Let’s start with a common economic principle: if the total value of goods and services in an economy is worth $1, and the money supply is $1, then each dollar is worth $1 of goods and services. 

If the money supply is increased to two dollars without an increase in the value of goods and services, then each dollar is now worth 50 cents of goods and services. The reason is because each dollar lost its buying power. It is the same reason why you can be a billionaire in Zimbabwe and still be poor – when you print unlimited amounts of money, your money becomes worthless.

There’s an old saying; “The difference between the government and a drunken sailor is … the drunken sailor spends his own money”.

The federal government has borrowed so much money that we have reached the debt limit. To keep up with government spending, the Federal Reserve has printed more money than the worth of our gross national product. This practice fuels inflation. 

According to Newton’s third law: “For every action, there is an equal and opposite reaction”.

In 2021, our federal government launched a war on fossil fuel. It is an undisputed fact that the rapid rise in fuel prices caused nearly every product produced and shipped to market to cost more. Energy to heat and cool our homes and businesses has increased dramatically. Food costs have also skyrocketed – caused in part by increased energy costs. 

The cost of housing has seen the biggest increase in recent years. In an effort to fight inflation, the Federal Reserve has raised interest rates dramatically. This, combined with the increased cost of building materials and labor has caused homeownership to be out of reach for many Americans. Housing costs have also caused rentals to increase..

Let’s not forget the “crime tax”. Statistics from Capital One Research indicate retail theft cost businesses $121.6 billion in 2023. In 2022, shoplifting grew by 19.4%. It is predicted that in 2024, retail theft will reach $132 billion. These losses are passed on directly to the consumer in the form of higher prices.

Bringing down inflation is a complex issue. Much of the cause has been failed government policy. As bad as it looks, we can do something about it. 

Through grassroots activism, we can elect representatives at all levels of government that support Our America issues like reducing the cost of living, crime and safety, freedom of thought, and voter ID. 

We call Our America’s grassroots activists Hometown Heroes. I urge you to join the movement. Together, we can achieve the American Dream.