To the Editor:
Many people are talking about inflation and blaming Biden. Many factors are responsible for inflation — and any president has less influence than you think. The pain of inflation has touched not only the U.S. but many other countries as well. Here are just some of the factors: Rising Wages: the legion of workers leaving their jobs, especially those in low-wage sectors, has played an enormous role in the rising cost of labor. To get enough workers to show up now, you need to pay more, so we are seeing rising wage rates throughout many food and agricultural sectors. Energy Cost Conundrum: After workers manufacture the products, the goods must be transported. So while you are at the pump paying higher gas prices, that means the companies trucking your packages and groceries are doing the same. The U.S. Energy Information Administration said in its most recent outlook that the oil increase was sparked by Russia’s invasion of Ukraine, which has roiled markets worldwide. The potential for further oil supply disruptions is occurring against a background of already low oil inventories (because of the pandemic) and the now higher demand. Saudi Arabia has refused to increase production. The oil companies are having a banner year in profits (are they being greedy). There are enough oil leases not being used that if used could solve some of the problem.
Finally, Cooling Off Demand: The final driver of consumer prices is simply demand. At the onset of the pandemic, the U.S. government unleashed waves of supportive financial measures to fortify the economy as businesses shut down. However, necessary those measures were in the short run, they may have led to the excess demand the Federal Reserve is now trying to cool off. Let’s not rely on conclusory statements. We need to read and analyze. The whole world is suffering.
Dorothy Stephens Duncan
Village of St. Charles
