It’s mildly amusing to read that many Americans seem to think inflation can be blamed on the president. If you bother to read news from around the world, you can see that inflation is worldwide and not the fault of anyone leader or country. One respected New Zealand economist summed it up in an article recently. He said inflation is due to worldwide increases in energy prices (almost 19% in the last year) supply chain problems (including lockdowns in China’s high tech industry) shortages of a wide variety of materials and supplies, and labor shortages including in shipping and transportation, etc. Most all of this can be traced back to the continuing COVID-19 pandemic.
The idea that any national leader in any country is responsible for any of this is just plain naive. If there is responsibility to share around, a good amount goes to those of us who have extended the pandemic by our behavior. Whether it’s those whose actions have spread the virus, or those of us who have gone on a spending spree (thus exacerbating shortages) or those who legitimately chose to leave low-paying, high-risk jobs, we all share in creating some portion of inflation. Central banks can temper the trend, and a waning pandemic will be a big factor. But who we elect to public office is not likely to change the trend. Getting COVID behind us is the key. Of course, that’s not likely to be what the politicians will tell you.
Paul A. Doscher
Weare