Inflation is back, and it’s hitting wallets hard—but is it really a partisan issue? That’s the question swirling in economic circles, and frankly, it’s a fascinating one. Personally, I think the attempt to frame inflation as a ‘blue state’ problem is not just misleading but also a distraction from the real drivers of rising costs. Let me break it down.
The Partisan Spin on Inflation
When Kevin Hassett, director of the National Economic Council, suggested that inflation is spiraling out of control in blue states, it felt like a political dodge. What many people don’t realize is that inflation isn’t picky about party lines. Gas prices, for instance, are soaring nationwide—up 40% since the Iran conflict began. This isn’t a California or New York problem; it’s an everywhere problem. From my perspective, blaming high-regulation states for inflation oversimplifies a complex issue. Sure, blue states like California have higher overall prices, but inflation measures increases, not absolute levels. And those increases? They’re happening in red states too.
Take Texas, for example. Gas prices there have jumped nearly 36% in the past year, compared to 26% in California. If you take a step back and think about it, the narrative that blue states are driving inflation falls apart. The East South Central region—all red states—saw inflation at 4.5% in April, above the national average. This raises a deeper question: Are we letting politics cloud our understanding of economic realities?
The Numbers Don’t Lie—But They Can Be Misinterpreted
Hassett’s claim that inflation is ‘on a deep downward dive’ if you exclude blue states is, in my opinion, a stretch. Core inflation, which excludes volatile food and energy prices, has actually risen this year. The Federal Reserve’s preferred gauge, the PCE index, shows core inflation ticking up to 3.3% in April. What this really suggests is that inflation isn’t cooling as quickly as some would like us to believe. One thing that immediately stands out is the use of alternative measures like the trimmed mean to paint a rosier picture. While the trimmed mean for the PCE index has dipped slightly, it’s not a reliable indicator during periods of surging inflation. As the Dallas Fed warned, it stayed low even during the 2021 inflation spike—hardly a reassuring track record.
Why This Matters Beyond the Numbers
What makes this particularly fascinating is how inflation narratives are being weaponized in political discourse. Framing economic challenges as partisan issues distracts from systemic problems like supply chain disruptions, global conflicts, and monetary policy. If we’re serious about addressing inflation, we need to stop treating it as a red state vs. blue state issue. Inflation doesn’t care who you voted for—it affects everyone. A detail that I find especially interesting is how quickly outdated data is being used to support partisan claims. Hassett’s reference to a November report, before the Iran war, is a prime example. In a fast-changing economic landscape, relying on stale data is not just unhelpful—it’s irresponsible.
The Bigger Picture
If you ask me, the real story here isn’t about blue states or red states—it’s about the fragility of our economic systems. Rising gas prices, shipping costs, and grocery bills are symptoms of deeper issues: geopolitical instability, trade policies, and monetary decisions. What many people don’t realize is that inflation is a global phenomenon, not a local one. Blaming it on state-level policies ignores the broader forces at play. This isn’t to say that state regulations don’t matter, but they’re a small piece of a much larger puzzle.
Final Thoughts
Inflation isn’t a partisan issue—it’s a human issue. Personally, I think we’d be better off focusing on solutions rather than assigning blame. Whether you’re in California or Texas, the rising cost of living is a shared concern. What this really suggests is that we need a more nuanced, less politicized conversation about economics. If we keep treating inflation as a red state/blue state problem, we’ll miss the forest for the trees. And that, in my opinion, is the biggest risk of all.
