Washington, D.C. – After the Department of Labor released figures which showed that inflation soared to 9.1% in June, the biggest yearly increase in nearly four decades, and members of Congress face increasing pressure to address kitchen table issues, the “Don’t Break What Works” campaign released the following statement regarding S. 2992, which would exacerbate already record-level inflation:
“Digital services actually help cut through some of the record-level inflation Americans are experiencing, yet some members of Congress are intent on pursuing niche legislation that will just make things worse for consumers. As members themselves have been urging, Congress should focus on policies that will help Americans stretch their salaries as they struggle with higher grocery costs, skyrocketing rent, and more expensive everyday goods,” said Chandler Smith Costello, a spokeswoman for the Don’t Break What Works Campaign.
Background
Digital goods combat inflation in 3 ways:
- As digital goods and services are used more, consumers sometimes pay less for services than they used to. If there are price increases, they tend to happen more slowly – reducing inflation.
- Digital goods and services allow for more price transparency and make it easier for consumers to compare prices. Ensuring consumers have price transparency and the ability to compare prices increases competition – further reducing inflation.
- Digital goods and services lead to more productivity, improvements to supply chains and lower supply costs – resulting in lower prices for consumers.
To read more about how digital goods and services have a deflationary effect, click here.
The Don’t Break What Works campaign is powered by the Computer and Communications Industry Association (CCIA). Learn more here.