Inflation Rises in the Pandemic
Consumers are feeling the pinch
Just as the economy seems to be taking a turn for the better, new reports from CNN and GMA show that inflation has risen to its highest levels in thirty years. Inflation at this point in time is a serious problem. This effectively wipes out the income gains of American families. Money is leaving pockets faster than coming in. Gas prices, food prices, and other items are at their highest levels. Biden and his team need to do something to stop prices from increasing even more.
The U.S. economy had increased in the number of jobs by over 500,000. Companies are throwing all kinds of incentives to attract workers. Even small businesses are adding benefits to gain employees. But the incentives won’t continue to be attractive if inflation continues to rise. There are multiple factors contributing to inflation’s rise.
The shipping crisis continues. Ships are still miles away from the port, waiting to come in to unload their cargo. The ships that are at the port are waiting to get their cargo unloaded. There’s a backlog at the port. Shipping containers are slow to be moved onto trucks. Why? There aren’t enough truck drivers to deliver the containers to businesses.
If you’ve been in Target or Walmart lately, you may have noticed empty shelves. Generally, that’s not unusual if there’s a winter storm coming or the last days of holiday shopping. But the empty shelves have appeared in September and October. In early November, I’ve been in Target and saw some food aisles empty. This is not normal.
The economy will slow down if things don’t change soon. The gains will be erased. Consumer demand hasn’t waned. People are spending more and want to see items on the shelves. Stores are trying to meet the demand but need deliveries. We need more truck drivers to pick up containers from the ports. We need the ports to be cleared so that ships can dock. The ships need to unload their cargo. It’s a vicious cycle.
Inflation can decrease if the government acts. Biden and his team have to make some moves towards lowering inflation. With the midterm elections a year away, Biden can’t afford to give ammunition to the Republicans. If Biden can enter the midterms with inflation down, jobs high, and prices low, that will help those during the midterms. If not, it will be a disaster.
