Inflation is at a 40 year high — climbing to an eye-opening 8.5% in March. Inflation is so high, in fact, it’s negating annual wage hikes and salary increases.
Take note of the price increase chart prepared by No Labels, depicting the specific extent of this increasingly worsening issue:
Some thought the issue was transitory, believing the increases wouldn’t leave a permanent mark on the economy; they were wrong. Writes Sarah Foster, who covers economic policy for Bankrate: “In the aftermath of the coronavirus pandemic, inflation came back with a vengeance. Ensnared in labor shortages and supply chain bottlenecks, price surges were at first only impacting goods that needed to be produced at a manufacturing plant, from used and new vehicles to furniture and appliances. Then, demand for the lockdown-deprived activities of attending a sporting event or concert, as well as traveling, flying or staying in a hotel surged after consumers emerged from lockdowns with stimulus checks and ramped-up savings accounts.
Those increases were all assumed to be temporary, clearing as outbreaks lessened worldwide and post-lockdown demand calmed. So far, however, inflation has only gotten worse — and it’s spread to even more categories, impacting services, rents, meals out at restaurants, repair and delivery services, as well as apparel and food. All of that highlights one of the key fears about inflation: Once it’s taken off on the runway, it’s hard to turn around.”
Hence, it’s a hard problem to solve.
So let’s try.
Let’s try by setting a couple of prudent ground rules for our leaders. First, level with us. Too many politicians attempt to defer all blame rather than examine how their advocated practices and policy have contributed to the situation. The conflict between Russia and Ukraine is an excellent example. While it has certainly complicated supply issues, rampant inflation began beforehand; too much money was chasing too few goods. So when “Putin Price Hike” is invoked as the new public narrative, that reveals an ulterior motive in the messaging. Friends, I want to solve the problem. I thus crave that our leaders would level with us. Be humble. Be honest. Stop deferring and deflecting.
And second, work together. Find a bipartisan solution. Just as the White House seems actively attempting to defer all blame, let’s also not direct all blame at the White House. Let’s find a way to solve the problem; it’s affecting all of us.
So says a certain sitting senator, one who consistently advocates for bipartisanship. Like him or not, there is wisdom in Sen. Joe Manchin’s words. The Democrat from West Virginia had much to say after the increasingly negative numbers were released on Tuesday:
“When will this end? It is a disservice to the American people to act as if inflation is a new phenomenon. The Federal Reserve and the administration failed to act fast enough, and today’s data is a snapshot in time of the consequences being felt across the country. Instead of acting boldly, our elected leaders and the Federal Reserve continue to respond with half-measures and rhetorical failures searching for where to lay the blame.The American people deserve the truth about why record inflation is happening and what must be done to control it.
Here is the truth: we cannot spend our way to a balanced, healthy economy and continue adding to our $30 trillion national debt. Getting inflation under control will require more aggressive action by a Federal Reserve that waited too long to act. It demands the administration and Congress, Democrats and Republicans alike, support an all-the-above energy policy because that is the only way to bring down the high price of gas and energy while attacking climate change.”
Yes, all emphasis mine.
Let’s stop the blame game. Level with us. Learn to work together. Leaders, your lack of it is hurting us all.
Respectfully…
AR