As inflation reaches a nearly 40-year high, with the consumer price index jumping an astonishing 6.8% in only a year, Americans are seeing their wallets drained of cash with the rapidly rising prices of everyday commodities, gasoline, rent, and most importantly in these trying times, medical care.
While everyone was busy pointing fingers, they failed to realize there’s much more at play here than just a mistake on one person’s end.
Biden is only partly responsible, acting too slow
After months of denying the inflation crisis, president Joe Biden finally settled down and admitted that the issue must be dealt immediately in order to protect the Americans impacted by it the most.
Grocery prices spiking unnaturally was the first indicator of the inflation crisis, with labor shortages and supply chain blockages playing a major role in the incident, and with other elements in play, like bad weather conditions, covid-19 waves, and high consumer demand, there’s no wonder why things turned out the way they are.
On the same note, the worker shortage upped the price of eating out immensely, even more, emphasized by the bottlenecks at ports, halting imported food deliveries as container ships are stuck in LA and Long Beach ports in California, still waiting to unload cargo.
Many small issues rolled up into a giant economical snowball
Another culprit behind the price spikes is hotel rates and airline fares which dipped rapidly as the pandemic was announced, only to rise to record-breaking highs as consumer demand returned due to the world’s economies reopening.
Another small, but highly impactful element at play is semiconductor shortages which have increased the price of electronics production immensely, with a factory-fresh car setting you back nearly $43,000 in September, a whopping 19% up from last year when the average sales price of a new car was only $36,000, which was still another record-high for the time.
While the stimulus checks did help many working-class families through the pandemic, the impact they have left on the economy is massive, and with married couples receiving $2800 the total amount is unfathomable.
But, in spite of all that, the economy seemed to be making a recovery, with emergency moves by the Federal Reserve pulling the hardest.
However, the return of consumers to restaurants, shops, and bars caused a high demand for a product that could not easily be provided due to the aforementioned supply chain blockages, driving the prices into a neverending upwards spiral that brought us to the situation we have today.
With employment rates rising every month, officials are hoping the economy will bounce back with a high enough employment percentage.While the issues above are only a fraction of what’s causing inflation, it is clear that many small things rolled up into a giant economical snowball and got out of hand in no time. As for now, the United States economy is at a standstill as experts try to figure out how to control the prices without further damaging an already fragile market. All we can do is wait and see.
In conclusion, it appears that the inflation crisis in America is a result of many factors coming together to create an economic snowball effect. The Biden administration has recognized this issue and has been working hard to try and address it. Despite their efforts, however, much work remains to be done in order to return the economy to stability. This includes providing adequate relief for those affected, increasing wages and job opportunities, addressing supply chain issues and encouraging businesses to invest in better infrastructure.
Furthermore, medical care must also be prioritized so that Americans are able to receive quality healthcare without facing financial ruin due to inflated prices. Only through collective effort and strong economic policies can the inflation crisis be reversed. Thank you for your time.