You may recall that I have been warning of increased inflation for several months. Though wages are going up, prices are going up even faster. The Bureau of Labor Statistics has issued its October 2021 report, reporting that inflation for the month of October increased by .9%. The increase is 6.2% over the last year, the largest increase in 31 years. Wages went up .4% in October, and 4.9% over the last year.
We must be concerned about this because the federal government does not seem to know what to do about it. If the federal government continues to pump more and more dollars into the economy, this problem will only get worse. As the government pumps more and more new money into the economy, the money that you earned is worth less and less.
We must be careful to distinguish between higher prices for products because of a shortage, compared to higher prices because of an increase of money in the economy without a corresponding increase in production. Though they may look similar, only the latter is truly inflation. If you spend more money for something that is in short supply, you have less money to spend for other products. Prices overall average out.
However, if you and most others have more money because the government has increased the overall money supply, all prices rise, though some may rise more than others, because there is more money bidding for the same amount of goods and services.
I find it remarkable with inflation surging, the president continues to try to pass his $3.5 trillion spending program that, if it passes, will make inflation significantly worse.
Administrative Rules Review
I have just been appointed to serve on the legislature’s Administrative Rules Review Committee. Iowa agencies enact thousands of administrative rules, clarifying or addressing ambiguities in statutes enacted by the legislature. The legislature has a joint senate-house committee that meets monthly to review these rules to be sure they are consistent with the laws we enact. The meetings are open to the public, and members of the public can comment on rules that the committee is considering.
Iowans More Likely to Hit Deer
The Iowa Department of Transportation warns that the likelihood of hitting a deer is high at the present time. This is mating season, meaning that deer are more active than usual. Also, with harvesting going on, their habitat is being disturbed causing many of them to look for new homes.
According to State Farm Insurance, Iowa ranks 7th among the states for the likelihood of hitting a deer. For the year July 1, 2019 to June 30, 2020, 1 in 59 Iowa drivers hit a deer, according to State Farm. Over the years Iowa has ranked high in this category with our specific rank varying a little from year to year.