Open Letter to Congress

[This letter was sent to my representative and both senators in congress. It is my prediction that inflation will happen, especially if there is an internal executive branch movement to decrease the cost of money (lower interest rates.)]

[Letter delivered 4/6/2020 by electronic mail]

Inflation too high

Dear Mr. [Congressional member]:

My name is [tonyotag] and I am a constituent and North Carolina Citizen that lives in the zip code 27616.

It is understandable that recent medial events of COVID-19 and quarantine measures placed by states and recommended by federal officials at this time; that does not mean America cannot be just as productive.

Inflation is a simple by product of short term external shocks (like the virus pandemic that is happening now) AND medium and longer term reactions of supply and demand. Likewise, it is expected for many of the working people, businesses, and investors that inflation is kept tame. I am not calling for deflation. I am highly concerned about rising costs of consumer goods due to low interest rates that the Federal Reserve (and treasury department) has instituted upon. It is best that inflation target is between zero and one percent (although the Federal Reserve does have a target of two percent, I can live with that.) Central banks are primarily responsible for inflation as they can and do control the money supply.

What is also concerning to me is that a significant proportion of the American workforce is restaurant, hospitality and leisure. Although these are respectable workers; it is probably best for America’s future to increase workforce and employment diversification away from restaurant, hospitality, and leisure and increase the focus on manufacturing; or at least decreasing the value of the American currency to increase the favorability of business diversification. Additionally, it is important for America to go back to work; as such I do advise a minimum wage increase for all jobs and workforce that now earns less than federal minimum wage in the restaurant, hospitality and leisure firms.

Lastly, I hope the goals of the United States Treasury and Federal Reserve has inflation of between zero and one percent annually. Hopefully, the temporary reduction of interest rates and COVID-19 pandemic are just a short term measure that will be mitigated against by appropriate measures.

Keep inflation low please AND keep America productive.



Sincerely, 

[tonyotag]