Inflation is increasing the U.S., but Arkansas contributed relatively less to this problem than other states. | Adobe Stock
Inflation is increasing the U.S., but Arkansas contributed relatively less to this problem than other states. | Adobe Stock
It's no question that states that continue to have tight COVID-19 restrictions aren't doing the U.S. economy any favors and, for some leaders, harnessing the coronavirus takes precedence over the wealth of the nation.
Arkansas is one state that has avoided making contributions to the nation's inflation that's currently on the rise.
Consumer spending in Arkansas was higher than the national average across almost all categories, according to a report by Arkansas Economist.
The Arkansas Economist report concluded that the reason Arkansas commerce remained relatively strong compared to the rest of the United States was that “Arkansas experienced fewer restrictions on commerce than many other states” due to COVID-19.
The Congressional Budget Office released a report predicting that if the current tax and spending laws don’t change by 2031, the U.S. national debt will reach 107% of the gross domestic product, the highest level in U.S. history.
The report also states that the current federal debt held by the public, which was 100% of the U.S. GDP at the end of the fiscal year 2020, is projected to reach 102% of GDP by the end of 2021.
Arkansas ranks among the lowest per capita debt in the United States in 2021, according to a United States Government revenue report.
The United States money supply has increased by 40% since the beginning of the coronavirus crisis. Before the period of high inflation of the 1970s, the money supply had increased by just 13%, The Federalist reported in April.
Former Clinton administration Treasury Secretary Lawrence Summers warned the recent economic stimulus passed by the Biden administration will likely “set off inflationary pressures of a kind we have not seen in a generation.”
Inflation is projected to rise by over 60% from its pre-COVID low of 1.4% to 2.3% or more, U.S. Sen. Rick Scott (R-RL) wrote in a letter to his congressional colleagues in February.
According to a Shopkick survey, 83% of Americans are tightening their budget this year due to inflationary pressures, and 54% are “very worried” about inflation.
The Shopkick survey also found that over 90% of respondents noted an increase in grocery and gas spending since Biden took office.
Arkansas' Gov. Asa Hutchinson, a Republican, can be thanked for the economic success, as he has pushed to open up the state fairly quickly after tightened coronavirus restrictions.
The state's 46th governor, Hutchinson was reelected in 2018 with 65% of the vote.
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