What caused Inflation?
1. COVID. The main cause of inflation. It disrupted every aspect of society around the world.
2. Supply Chain disruption. The private sector’s inability to adjust to COVID. “Just-in-time” inventory system dominated by international commerce was the perfect storm for shortages of essential products and services when COVID shutdowns occurred.
3. Putin’s barbaric war against Ukraine. A “reinforcing” inflationary event/curtailed flow of energy. Oil and gas prices spiked to reflect shortages. Energy is a main component in inflation.
4. Corporate greed inflated prices of products and services beyond rationale justification. Corporations continue to raise prices despite historic record level profits.
5. High inflation was NOT just an America event. Inflation grew throughout the world as COVID and the Supply Chain disruption was a mega event effecting every nation on earth.
6. Shortage of workers throughout society creates an inflationary force.
7. Extraordinary events like Climate Change induced floods and droughts create shortage of food products found in grocery stores. Lack of farm workers to harvest the crops, aviary flu which killed millions of chickens and their ability to produce eggs.
8. The Federal Reserve System controls the money supply and interest rates. Rising interest rates on housing and auto loans have increased significantly. But the rates have leveled off and expect to be lowered during the rest of the year. The Federal Reserve System is NOT controlled by the President or Congress. They are an independent entity separate from our political system.
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It was a “Monumental Perfect Storm” of domestic/international events that unleashed record setting inflation in America and around the world. Absolutely no proof that President Biden was at fault!
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■ Realize high inflation rates have significantly been reduced in the US, now the lowest among all developed countries around the world. Biden became president while inflation was skyrocketing, but he has no fault for creating this horrible reality. America has the best economy in the world post COVID. He was dealt a horrible deck of cards when he took office. Very successful in taming the beast of COVID and its effect on inflation and rising crime.
An important “timeline” of the US economy
2008 President Obama inherited a horrific Republican Economy. the worst recession since the Great Depression.
2008 to 2016 Obama stabilized the economy, created 23 million jobs and gave Trump a solid economy with near record levels of unemployment.
2016 – 2019 With Trump as President, a continuation of the solid US economy Obama created but with less job growth. $2 trillion GOP tax cut to the rich had little effect on US economy other than further enrich the already rich and increased the Federal debt.
2020 COVID struck in the last year of Trump administration and the US/World economy imploded at record levels. Gas prices dropped, 20+ million jobs lost, almost a word-wide depression.
2021 Biden became president inheriting a horrific economy in free-fall. Record level of inflation world-wide. He stabilized the economy, fought COVID and invigorated the economy with several initiatives like the Inflation Reduction Act.
2024 President Biden stabilized the US economy and lowered the inflation rate, now lowest among developed nations of the world and the world’s strongest economy. The world is still recovery from the monumental effects of COVID on the economy.
Observation …. Republicans twice gave Democratic Presidents two horrible economies and both times Democrats created stability, record level of employment gains and reduced inflation. Trump and the GOP only benefited the rich while creating misery to the working-class. These are facts, NOT trump/GOP lies and wild exaggerations.