CARTOON: A presidential pardon | Coeur d’Alene Press
The editorial “cartoon” accuses President Biden of being responsible for inflation. Is government action a cause?
Consumer demand is the engine of the US economy, high demand has created shortages of goods (remember toilet paper). Some companies order – and accumulate – more merchandise and parts than they need so they don’t run out.
Americans continue to spend more on goods than on services. Is part of the problem us?
Transport delays remain high. Before the pandemic, ships had set arrival times and proceeded directly to the dock for unloading. Today, production in Asian factories is at record levels. The empty containers then occupy the port space until the return but limit the space for unloading the full containers.
As with ports, rail lines carry more goods, up 7.5% from a year ago. Truck deliveries rose 1.7% in September. Yet there are not enough drivers or trucks to carry all the freight.
No president can control gasoline prices. Oil has different refining processes. It is then sold on the international market. Why are gasoline prices at the pump high while the costs of oil and gas companies are falling? President Biden has asked the Federal Trade Commission to examine whether illegal driving is costing families at the pump.
The infrastructure bill will strengthen supply chains and reduce inflationary pressures. This bill was seconded by Senators Crapo and Risch. Rebuild Better legislation will fight inflation and maintain economic growth. These are not causes of increased costs, but can stabilize our economy and provide better paying jobs for many.