So why aren’t politicians talking about this? It’s absolutely clear that Fed, farm, energy, and trade policy have all served to drive up these costs. Well, tearing down those policies runs contrary to the interests of Washington interest groups heavily invested in controlling those knobs and levers. But a bigger part of the problem is priorities driven by a linguistic trap. Politicians who are small businessmen or attorneys by training talk about the marketplace as a place full of entrepreneurs, and talk about government in terms of its size and tax burdens and barriers to job growth. They’re caught in the trap of viewing all these things in aggregate.
But that’s not how the middle or working class think about the economy. A politician talking about ‘creating new jobs’ or ‘spurring investment’ or ‘increasing exports’ sounds nice, but that’s all it is – nice-sounding. Most Americans worry generally about the lack of jobs and growth, sure, but they are far more worried about what they perceive as a higher cost of living at a time of stagnant wages. They have expectations for the life they can provide for their families and children, and they’re worried they won’t be able to meet those expectations. This is all about delivering the life they want to those they care for. But when they look to government, they don’t see interest in that. Politicians insist that inflation is under control, just so long as you don’t include food, education, health care, housing, or energy, so it’s time to start focusing on More Important Things. You wanted cheeseburgers? Well, the Fed thinks it’s fine if you settle for chicken.