Letter: Inflation higher when Democrats control Congress

August 23, 2013 

In her Aug. 14 letter, Melissa Souza cited data showing Democrat presidents as better for the economy. However, her data is misleading because only in six of the last 36 years did Republican presidents serve with a House also controlled by Republicans. All appropriations bills originate in the House and presidents of either party rarely have (if ever) vetoed major spending bills, so it is effectively the House that controls spending.

Over the last 36 years, when Democrats controlled the House, wages rose faster (4.5 percent vs. 3.1 percent) and GDP rose faster (7 percent vs. 5.1 percent) thus creating an "illusion" of greater prosperity. However, average annual inflation also rose much faster under Democrat control (4.7 percent vs. 2.6 percent) driven largely by much higher deficit spending (11.7 percent vs. 5.8 percent).

These higher inflation rates more than offset the higher wages and GDP growth the Democrats claim credit for. It also caused more jobs to be moved outside of the country. Hit hardest were low-income workers, the unemployed and retirees who spend more of their income on basic living expenses.

GENE GOLTZ, Kennewick

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