Federal spending needs to be brought back to 2019 levels, and excessive deficit spending needs to be halted

Editor’s Note: The Ideas Lab asked the Democrat and Republican candidates for the U.S. Senate to submit 1,000 word essays on how they would tackle inflation, the issue Wisconsinites surveyed as part of the Main Street Agenda project said is the most significant problem they face heading into the Nov. 5 election.

Inflation has crushed Wisconsin families, driving up prices and making it harder than ever to get by. To fix this problem, you have to elect folks who understand the root causes and how to address them in a lasting way.

Inflation is always a monetary event. It is caused by the excessive spending and printing of money. The definition of inflation is too much money chasing a fixed amount of goods and services. The spike in inflation was a result of the excessive spending by the federal government that began during the COVID-19 lockdowns. The government increased federal spending by 40% in 2020 as it was providing stimulus checks to individuals and businesses to keep the economy from collapsing. The contraction in economic activity that occurred by shutting down our economy was offset by the temporary spike in government spending and transfer payments. 

The problem of inflation began when the economy reopened at the end of 2020 and the Biden-Harris administration, which took over in January of 2021, continued to spend money at the same rate even though the economy was roaring back as businesses were reopening and employees were being rehired. Through a series of legislation like the Inflation Reduction Act, Biden, Harris, and Congress have added $4.1 trillion in federal spending on top of normal appropriations acts that were already causing deficit spending. They added more debt in the last 3.5 years than during our country’s first 230-year history. 

Tammy Baldwin: ‘Greedflation’ is driving prices higher. I wrote a bill to stop gouging.

You heard from the candidates. We want to hear from you. Rate their inflation essays.

Due to this excessive spending, the Federal Reserve (the government’s bank) was required to absorb that spending by purchasing $5.7 Trillion in Treasuries and mortgage-backed securities through a process called Quantitative Easing. As a result, money supply increased significantly. The most important measurement of money supply is M2, which increased by over 39%. 

Because of this money printing, inflation was ignited, first in the price of assets (i.e. stocks, bonds, real estate), then to the price of goods, followed by the price of services. Inflation over the past three years increased by over 22%, and if we measured inflation like we did in the 1980’s prior to President Clinton’s changes in the measurement of CPI, inflation would have increased closer to 40%, almost equal to the increase in money supply. 

Impact of inflation on Wisconsin families has been horrible

The impact of inflation on Wisconsin families has been horrible. It has driven up the price of their groceries, gas and heating, housing, healthcare, and insurance. It has also caused real wages to actually decline over the last three years. We have rarely had American wages dip over a three year period. 

Sen. Tammy Baldwin and Vice President Kamala Harris claim inflation is a result of corporate greed. However, if this were the case, why weren’t corporations being greedy for the 40 years prior? Further, why does inflation track with the federal increase in spending and money supply? Lastly, does Baldwin also claim that farmers were being greedy because they were passing on higher prices? Or small businesses that were passing on higher prices because their costs were rising? It is a silly argument and a deflection from their role in creating this horrible outcome for Wisconsin families. 

How do we tackle this problem? 

The Federal Reserve has already started that process by slowly contracting the money supply and increasing interest rates to slow the economy. However, because of our now $35 trillion in debt and the continued federal spending, exceeding 50% of the level prior to COVID, inflation will unfortunately resume unless difficult decisions are made immediately. 

The first thing that needs to happen is federal spending needs to be brought back to 2019 levels, and excessive deficit spending needs to be halted. To prevent an economic contraction as spending declines, pro-growth policies need to be implemented, like deregulation. President Reagan deregulated the economy in the 1980’s while he was addressing the inflation problem of the 1970’s, and this helped create the economic boom that followed. Unfortunately, the regulatory state has grown far more dramatically than it was even in 1980. Any business owner or farmer will tell you they are choking on excessive regulations. 

Further, mandates that the Biden administration has put on numerous industries need to be removed, such as on automakers for EV cars or energy companies with green energy initiatives that are not economically viable. All those mandates do is drive up the costs of cars and energy. What we need is to get the economy more in alignment, by reducing unnecessary costs of producing goods and services while creating strong economic growth to get wages increasing. This is what will improve financial outcomes for Wisconsinites.  

Contrast my real world experience with that of career politician

I have spent my life in the real world and understand how our global and financialized economy works. I have a deep understanding of how the banking system, our capital markets, and the Federal Reserve function. Having spent my career building and turning around companies, primarily community banks, and having operated in multiple different industries, including my real estate development company in Madison, I have unique insights into all aspects of our economy. 

Unfortunately, today, we have career politicians like Baldwin who are making impactful decisions on our economy who simply do not understand how our economy functions, because they have never operated in it and have no experience. 

Disappearing farms: We feared for dad’s life after selling our cows. Finding hope while friends faced loss.

A primary reason I entered the race for the U.S. Senate is because I have watched these horrible economic policies being implemented that are hurting the middle- and working-class and having a devastating impact on the elderly that live on fixed incomes. We are also jeopardizing our children’s future by leaving them $35 trillion in debt, with another $1 trillion being added every 4.5 months. 

If we don’t address our debt and deficit spending, the U.S. economy will collapse into a debt crisis that is not too far off. Amongst all the problems our country is currently facing, it may be the biggest concern. It will require smart economic policy and cooperation by both parties to get this problem fixed! The people of Wisconsin should know I will do everything within my power to improve their wellbeing. 

Eric Hovde is the Republican candidate for the U.S. Senate in Wisconsin. He is the CEO of Hovde Properties, a Madison-based real estate development company.

Kalen DeBoer knows there’s no place like home, but he’s ready for his Alabama squad to embrace one of college football’s top environments: Camp Randall at Wisconsin.

DeBoer’s first game coaching Alabama against a Power 4 opponent will come on the road as the Crimson Tide head to Madison for a clash with Luke Fickell’s Badgers.

So far, DeBoer’s tenure is off to a 2-0 start. Alabama has home wins Western Kentucky (63-0) and USF (42-16). DeBoer was asked on Monday about getting the Tide ready to go on the road.

“There’s nothing like playing at home here at Bryant-Denny, but I think there is something to knowing you’re going into a great environment,” DeBoer told reporters. “These guys really probably haven’t been there— maybe a couple guys from the Midwest that have seen that or been on a visit maybe at one point.

“It’s going to be a great atmosphere up there. And I think it’s one that when you’re preparing to go play those games, and we’ll of course have that many times here with the SEC schedule too, that hostile environment, taking it on and just kind of knowing that it’s you versus everyone there. I think our guys are looking forward to the challenge and looking forward to improving on this last week and knowing that we’re going to have to in order to get a win against Wisconsin on Saturday.”

Alabama’s trip to Wisconsin is part of a home-and-home series. The Badgers are set to visit Tuscaloosa on Sept. 13, 2025.

At Washington, DeBoer only lost 3 games in two seasons. All 3 contests were played away from home. DeBoer’s Huskies only 2 losses of the 2022 season came in back-to-back weeks at UCLA and Arizona State. Washington’s only loss of the 2023 campaign was the College Football Playoff National Championship game played at NRG Stadium in Houston.

Saturday’s SEC-B1G clash is getting FOX’s Big Noon treatment, and will kickoff at noon ET.

Kara Welsh, the University of Wisconsin-Whitewater student and champion gymnast, was on the floor in the fetal position when she sustained some of the eight gunshot wounds that killed her on Aug. 30, according to the Milwaukee Journal Sentinel. 

Authorities said they found the 21-year-old in a pool of blood inside the apartment of her boyfriend, 23-year-old Chad Richards, just before midnight.

She sustained eight gunshot wounds to the neck, torso and other areas, a medical examiner determined. 

BOYFRIEND CHARGED IN THE SHOOTING DEATH OF ALL-AMERICAN COLLEGE GYMNAST KARA WELSH

Richards, a former UW-Whitewater wrestler, was charged with first-degree intentional homicide in Welsh’s killing.

ALL-AMERICAN WISCONSIN COLLEGE GYMNAST SHOT AND KILLED DAYS BEFORE CLASSES BEGIN, SUSPECT IN CUSTODY

He told investigators he was acting in self-defense, after he and Welsh argued and struggled over his gun that Welsh grabbed from a nightstand, Fox News Digital reported. Richards said he wrestled the gun away and shot Welsh because he “feared for his life,” and he placed the 911 call. 

7 MIDDLE, HIGH SCHOOL FOOTBALL DEATHS IN A MONTH PROMPT WARNINGS: ‘PROTECT YOUR KIDS’

Whitewater Police Department identified the suspect who killed Kara Welsh as Chad T. Richards, 23, of Loves Park, Illinois. (Whitewater Police Department)

Welsh attended UW-Whitewater, where she was a member of the gymnastics team and was majoring in management in the school’s College of Business and Economics.

She was preparing to enter her senior year at the university. In 2023, she won an individual vault national title at the NCAA Division III championships. 

‘SUGAR DADDY’ SUSPECT AT CENTER OF COLLEGE STUDENT’S MURDER PROBE

“Kara was a daughter, sister, dear friend and teammate,” her family wrote in a fundraising page, adding, “Kara had a unique ability to bring joy to any person she crossed paths with, always putting a smile on people’s faces with her sense of humor, unwavering support and sweet disposition.”

US AIR FORCE ACADEMY CADET, 19, FOUND DEAD IN DORM ROOM

A memorial for Kara Welsh is seen in her hometown of Plainfield, Illinois. (WFLD)

Richards was on the UW-Whitewater wrestling team for the 2020-21 and 2021-22 seasons, during his freshman and sophomore years, according to the school’s athletics site. 

CLICK HERE TO GET THE FOX NEWS APP

He is facing additional charges of endangering safety by use of a dangerous weapon and disorderly conduct and is being held at the Walworth County Jail on $1 million bond.