Wisconsin
Eric Hovde: Inflation is crushing Wisconsin families. Blame federal spending, regulations.
Federal spending needs to be brought back to 2019 levels, and excessive deficit spending needs to be halted
Watch: Eric Hovde’s full 2024 RNC remarks
Wisconsin Senate candidate Eric Hovde’s full remarks at the 2024 Republican National Convention in Milwaukee.
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.
Wisconsin
Setting sail on iceboats across a frozen lake in Wisconsin
Wisconsin
Senate must pass bill so WI athletics can stay in the game | Opinion
AB 1034 provides clarity around NIL policies, offers limited financial flexibility tied to existing athletic facility obligations, and ensures that Wisconsin Athletics can compete on equal footing.
How historic NCAA pay settlement will affect college sports
A federal judge approved the terms of a $2.8 billion settlement that will see schools be permitted to pay college athletes through licensing deals.
unbranded – Sport
Let me put my bias, or experience up front. I was a student athlete at the University of Wisconsin-Madison, and was fortunate to have one of my sons graduate as a far better student athlete.
I am writing in support of Assembly Bill 1034, which modernizes Wisconsin law to reflect the realities of today’s college athletic landscape, not because of those past “glory days,” but because college athletics has changed more in the past three years than in the previous three decades.
New national rules now see universities sharing millions of dollars annually with student-athletes through revenue sharing and name, image, and likeness (NIL) opportunities. Other states have responded quickly, updating their laws to ensure they can compete in this new environment.
Making sure Wisconsin doesn’t fall behind
The State Assembly, with overwhelming bipartisan support, passed AB 1034, now it’s up to the Wisconsin State Senate to pass this legislation and send it quickly to Gov. Tony Evers to ensure Wisconsin doesn’t fall behind.
AB 1034 provides clarity around NIL policies, offers limited financial flexibility tied to existing athletic facility obligations, and ensures that Wisconsin Athletics can compete on equal footing with peer institutions across the country. In a measured way, the bill would relieve UW-Madison, UW-Milwaukee, and UW-Green Bay of $15 million of debt related to athletic facilities with the expressed purpose that those dollars would instead be used to invest in athletic programs.
This legislation is critical for two inter-connected reasons, competition and economic impact.
At a recent capitol hearing, UW-Madison Director of Athletics Chris McIntosh explained that 80 percent of the entire athletic department budget is generated by the football program. That revenue underwrites the competitive commitment to the other 11 men’s and 12 women’s varsity teams, supporting some 600 student athletes.
The capacity for this to continue is threatened by $20 million in new annual name and likeness costs that impact all NCAA schools. An expense that will continue to rise. In addition, peer institutions in the Big Ten and across the country are committing substantial additional resources to these NIL efforts. In short, without this debt support, the university and its athletes will not only lose an even playing field, they may lose the ability to get on the field.
This threat from the changing nature of NCAA athletics also poses a threat to the economic impact from college athletics. A recent study found that nearly 2 million visitors came to campus events annually, generating more than $750M in statewide economic impact from Wisconsin athletics. Case in point, each home football game produces a $19M economic impact, with 5,600 jobs in the state tied directly or indirectly to the department’s activities.
This bipartisan legislation is not about propping up a single sport. It’s about protecting broad based opportunities for all our student-athletes, some of whom we just watched win a gold medal for the U.S. women’s’ hockey team.
Athletics are often noted as the front door to the university, but I would broaden that opening to the State of Wisconsin. Our public university system success strengthens enrollment, attracts the talent that drives our prosperity, and serves as a sustaining way forward for our economy.
Bill provides measured and responsible investment
As the former head of one of our state’s largest business groups, I have spent much of my career engaged in economic development. I know what generates “return on investment.” AB 1034 provides a measured and responsible investment that will generate a positive impact for Wisconsin taxpayers, citizens, and employers.
NCAA athletics has changed, and Wisconsin must change with it, or sit on the sidelines. So let’s encourage the Wisconsin State Senate to pass AB 1034 and put Wisconsin in position to compete on the field which provides a win for our student athletes and all of us who benefit from a world class university system.
Tim Sheehy is a UW-Madison graduate and former student athlete. Sheehy served as the president of the Metropolitan Milwaukee Association of Commerce for more than 30 years where he oversaw economic development and business attraction for the region.
Wisconsin
NE Wisconsin community, politicians react to US airstrikes in Iran
GREEN BAY, Wis. (WBAY) – The United States launched airstrikes in Iran on Wednesday, killing Iranian Supreme Leader Ayatollah Ali Khamenei and prompting fast reactions from across northeast Wisconsin.
In Appleton, over a dozen of protesters came together at Houdini Plaza, protesting the strikes and calling for peace, and in Green Bay, protesters lined the streets with signs condemning the strikes.
One protester we spoke with said the strikes were not about the nuclear protest, but for a regime change.
“All I could think of is WMDs that got us the last war in the Middle East, and it was just a lot of bunk, and the other thing is he said is he’s trying to overthrow the current regime,” said John Cuff of Appleton.
Area lawmakers are also reacting to the attacks in Iran.
Senator Tammy Baldwin released a statement following President Trump’s announcement of the strikes, saying: “My whole career, I have been steadfast in the belief that doing the hard work of diplomacy is the answer, not war. I believed that when I voted against a war in Iraq and I believe it today. Iran poses a real threat and one we need to take head on, but getting into another endless war is not the answer.
“President Trump illegally bombed Iran, totally disregarding the Constitution, putting American troops in harm’s way, and starting another war in the Middle East with no end in sight. The Constitution is clear: if the President wants to start a war, Congress – elected by the people – needs to sign off on it. The Senate needs to come back immediately to vote on this President’s senseless and illegal bombings– I know where I stand.
“Have we learned nothing from the wars in Iraq and Afghanistan? Doubling down with another open-ended war without realistic goals or a strategy to win is not only foolish, but also recklessly puts Wisconsin’s sons and daughters at risk.
“President Trump pledged to the American people that he would not get involved in another foreign war, and this is yet another broken promise from this President. The President needs to listen to the people he represents: Americans want fewer foreign wars and more focus on them and their everyday struggles.”
Representative Tom Tiffany also released a statement on X, formerly Twitter, saying: “My thoughts are with the brave U.S. forces carrying out these precision strikes and with the safety of American personnel in the region.”
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