It was a night in which even “the great communicator” himself may have struggled to be heard.
At the Ronald Reagan Presidential Library in California on Sept. 27, 2023, seven Republican candidates looking to become the leading challenger to the absent GOP front-runner Donald Trump interrupted, cross-talked and bickered – often to the exasperation of the presidential debate moderators.
And yet, between the heated exchanges, important economic and business issues were discussed – from national debt and government shutdowns to labor disputes and even school choice. One thing the candidates agreed on: They aren’t fans of Bidenomics.
Listening in for The Conversation were economists Ryan Herzog of Gonzaga University and University of Tennessee’s Celeste K. Carruthers. Here are their main takeaways from the debate.
Inflation talk assigns blame, falls flat on solutions
Ryan Herzog, Gonzaga University
The most recent Fox News survey showed that 91% of Americans are worried about inflation and 80% about rising housing costs. I tuned into the second GOP debate hoping to hear how the candidates would solve these problems. I was left disappointed.
Not a single candidate mentioned rising housing costs, and few even acknowledged inflation. Given how much the issue has dominated the news, I assumed the candidates would mention it more than the eight times they did in the prior debate. I was wrong.
First, let’s check some inflation facts. Former South Carolina Gov. Nikki Haley claimed that the average household is spending US$7,000 more per year on groceries and gas because of inflation. I believe she also meant to include housing costs. The latest data shows the annual inflation for food at home – as opposed to restaurant meals – is rising less than 3% per year. While that’s up 24% since the start of the pandemic, it’s far below what you’d need for an increase of nearly $600 per month.
Next, former Vice President Mike Pence said that recent wage gains have not kept up with inflation. But according to the most recent data, average wage growth has actually outpaced inflation. Indeed, workers in lower-wage industries that are seeing labor shortages, such as the leisure and hospitality sector, have seen very substantial pay increases.
Nearly every candidate blamed inflation on excessive federal spending. Under Presidents Donald Trump and Joe Biden, the total level of U.S. government debt increased by nearly $8 trillion and $4.5 trillion, respectively. As expected, most candidates proposed cutting government spending and taxes to help struggling families. But it’s unclear whether those policies, taken together, would be effective at lowering inflation.
The candidates also agreed on the need to promote U.S. energy independence – through drilling, fracking and coal – to promote low and stable inflation. But while reducing energy costs would support lower inflation, there was zero discussion of how new technologies like artificial intelligence could be used to fight inflation – for example, by improving productivity. In the end, most candidates resorted to old arguments and avoided debate on 21st-century solutions.
It was a night in which even “the great communicator” himself may have struggled to be heard.
At the Ronald Reagan Presidential Library in California on Sept. 27, 2023, seven Republican candidates looking to become the leading challenger to the absent GOP front-runner Donald Trump interrupted, cross-talked and bickered – often to the exasperation of the presidential debate moderators.
And yet, between the heated exchanges, important economic and business issues were discussed – from national debt and government shutdowns to labor disputes and even school choice. One thing the candidates agreed on: They aren’t fans of Bidenomics.
Listening in for The Conversation were economists Ryan Herzog of Gonzaga University and University of Tennessee’s Celeste K. Carruthers. Here are their main takeaways from the debate.
Inflation talk assigns blame, falls flat on solutions
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