Blame the modern economy for US inflation

The headlines make it scream Swelling Stay here. Consumer prices rose on average 6.2% The biggest increase since 1991 last year. Americans consider – to quote New York timeS – ‘Cash flow and jobs’, too Such a pity With economic status.

No wonder Republicans are happy Line drawing Between inflation and the economy and general concerns about Joe Biden’s presidency.

Surprisingly, Biden helps them Quoted by his administration Part of the explanation for the current rise in inflation is people putting more money in their wallets. A November 10 talkYou all received checks for $ 1,400. You have checks for a lot of things, “Biden said, and with academic patience while teaching a class in Economics 101, he explained,” More people buy money and less products. Happening? … There are prices. Rising. “

From New York PostThe paper, with a conservative slant, jumped to the talk, with the president acknowledging that “Govt. [the] High inflation rates.

The newspaper underestimated the importance of Biden Make sure “The supply chain is the reason.” In fact, the President guided his observers by explaining very clearly how the globalization of the economy works, the artificial reduction of commodity prices over the decades and the vulnerability posed by the Govt-19 epidemic.

“Products like smartphones often combine parts from France and Italy; chips from the Netherlands; touch screens from New York; camera components from Japan – a distribution chain spanning dozens of countries,” Biden said.

“This is the nature of the modern economy – the world economy,” he concluded. To increase their profits.

I remember it was right From Viking Against Globalization They have been protesting against it since the 1990s. According to a 2007 article Mark EnglerProtesters, including trade unionists, environmentalists, anarchists, land and indigenous rights activists, human rights and organizations promoting sustainable development, anti-privatization and anti-labor activists from around the world, claimed that “corporate policies led to globalization.” ”.” Increases global poverty and increases inequality.

“Before you can get pencils from a factory in the United States, you have to use wood from Brazil and graphite from India,” Biden explained in his speech, noting that pencil manufacturers get wood from Brazil. You can count on it. Illegal login In the Amazon region, this leads to lower timber prices. Not to mention the cost Freight From far-flung corners of the world, it generates massive carbon emissions leading to climate change.

Instead of blaming globalization on inflation, he concluded that it was the “nature of the modern economy” on which we depend. Most of the media missed this link. Rather, it is blamed on the rare cases where the US government ensures that people have enough money to live on.

Why are Americans not happy about the state of the economy? Apparently, according to Bloomberg Ramesh BonoroWhen wages rise, there is widespread distrust of the “repetitive” method. He rightly points out that “wages and benefits have risen wisely, but only at face value” and that “positive trends must continue before people begin to be satisfied”.

See studies conducted prior to infection (e.g. This is from 2018, On This is from 2019) And widespread concern about the state of the economy. In other words, Americans have been frustrated by decades of continued wage oppression and the growing trend of insecure jobs in the “work economy.”

Due to this the number of people registered may continue to increase Resign Despite the pessimism about the economy. Last Bureau of Labor Statistics The report found that 4.4 million workers quit their jobs in September alone, continuing the trend seen in August.

In addition to workers looking for better paying jobs, Washington Post He concluded that the exit trend was linked to “difficulty in finding childcare”.

But if the Conservative Republicans are on their way, the Americans are not too happy with the government spending money on them, and childcare subsidies and incentives are the cause of the collective darkness — all of this. Political power again in the next election cycle Control the cost.

In these kinds of Conservative records Biden “does not understand how much inflation affects Americans” and “[i]Many Americans will not be able to pay their heating bills this winter if Congress Democrats do not block Biden & Pelosi’s plan, “the statement said. Ads Through the Conservative Growth Club, it targets vulnerable House Democrats.

Conservative Democratic Senator Joe Mans is from West Virginia He has made similar calls to justify his frustration with Biden’s plans to expand government aid.

The Liberal Democrats’ response to the current economic crisis is not very good, advising people to wait for inflation or that the demand for better wages will trigger inflation.

Larry SummersD., a former Obama administration economic adviser, wrote earlier this year that “higher minimum wages, stronger unions, higher employee benefits and stricter regulations are all desirable, but they increase operating costs and costs.” Echoing the Republican claim that unemployment benefits are bad for the economy, Summers said, “The unemployment benefits that allow workers to earn more instead of working will certainly be exhausted by September.”

The dominant message to Americans from the political elite across the spectrum is as Biden made clear in his speech: “This is the nature of the modern economy” and we must deal with it.

The greatest advantage of our current economic climate is that it is not natural to be at the mercy of the variations and preferences of an economy designed by corporate profit-makers.

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