The economy is not nearly as bad as conservatives say it is, and some of the current inflation might be due to the torrid pace of job creation and subsequent competition for workers. But inflation is not confined to the U.S. It is a global phenomenon created by pandemic-related supply-chain shortages. China, which manufactures a massive amount of global goods, is still in the midst of draconian lock-downs that exceed anything that we experienced in the U.S. That has a far greater impact on prices than any Biden stimulus package from 2021.
Nick, I really enjoy your cartoons and agree with your assessment that the economy is doing much better than people think. What I would add to your discussion of inflation here is the role of corporate profiteering.
Prices are undeniably rising across a variety of goods. But what we're not discussing is one of the biggest structural drivers: the concentration of the American economy into the hands of a few corporate giants with the power to raise prices. (I've written about this in my own newsletter as well.)
If the market were actually competitive, corporations would keep their prices as low as possible as they competed for customers. Even if some of their costs increased, they would do everything they could to avoid passing them on to consumers in the form of higher prices, for fear of losing business to competitors.
But that’s the opposite of what we’re seeing. Corporations are raising prices even as they rake in record profits. (Corporate profit margins hit record highs last year.)
In any case, keep up the great work!
so many current problems are related to our non response to covid early on. thanks GOP