LETTER: We need leadership to help us cope with a new economy

To Ozaukee Press:

     Many Wisconsinites are asking: If inflation is slowing, why aren’t prices coming down? 

The answer is uncomfortable but important: We are living in a new economy, and the old price levels aren’t coming back.

     A major reason is wages. After decades of stagnant pay, workers finally saw real increases after the pandemic. That’s good for families, but it raises the baseline cost of nearly everything—food, transportation, health care, childcare and basic services. Businesses aren’t cutting wages, so they aren’t cutting prices.

     Global forces also keep costs high. Wars and foreign conflicts affect fuel and shipping. Climate-driven floods and droughts disrupt farming. Housing shortages push up rents across Wisconsin. These pressures exist regardless of who is in office.

     But we must also be honest about policy choices making things worse. The Trump administration’s expanded tariffs act as a tax on American consumers and businesses. Every serious economist agrees tariffs raise prices here at home. At the same time, restricting immigration shrinks the workforce, making labor shortages—and costs—worse.

     Even if every tariff disappeared tomorrow, prices still wouldn’t return to 2019 levels. The economy has fundamentally changed. Real leadership means focusing on stability, affordability and policies that reduce costs – not wishful thinking about the past.

Shawn Graff

Slinger