Dear Editor:

In this election year, the Center for a Sustainable Coast firmly believes that one of the most pivotal but least understood issues is rising costs. Like many factors crucial to voter choices, assertions about inflation and housing costs are distorted by faulty – and deviously propagated – claims that, unless factually corrected, will only worsen exploitative practices.

Extensive investigation by financial analysists has repeatedly concluded that much of rising costs in recent years is a direct result of corporate price-gouging. Fortune and other reputable financial news sources have reported that over 50% of consumer price increases in the past two years were caused by producers raising prices far above their costs of providing goods sold.

The Fed’s response has been to raise interest-rates – their universal remedy for inflation – but because higher interest-rates make borrowing more expensive, fewer new homes are built and supply falls short of demand, raising the cost of rent and home ownership.

Also significantly adding to inflation are well documented environmental factors caused by climate change. For instance, flooding, drought, and extreme heat reduce crop yields and food supplies, thereby raising costs. Similarly, transport delays due to drought-restricted use of the Panama Canal and Mississippi River for cargo distribution generate supply-chain problems with inflationary consequences.

Despite these facts, they are seldom mentioned in extensive media analysis of economic issues. Also unevaluated are flawed assumptions in using interest rates to control these hidden sources of inflation. Blaming higher costs-of-living on partisan politics undermines the voters’ ability to make rational decisions.

David Kyler, Center for a Sustainable Coast. St. Simons Island, Georgia