I am tired of hearing people complain about Biden and the Democrats causing inflation. How are they responsible for the inflation in the rest of the World? Some of other countries have over 100%? A few are over 200%. Biden’s policies had nothing to do with their problems. Our inflation rate was among the lowest before the Federal Reserve started raising rates.

            Many countries have run high inflation rates for years because of their own problems. The inflation rate problems for the top twenty nations minus China and Russia are because of the Pandemic. The World’s entire economic system was upset by the Pandemic and its side effects. Most of the world’s manufacturing, transportation, exploiting mineral reserves, and purchasing by manufacturers and consumers was reduced or stopped. When the Pandemic was ebbing purchasing exploded and the costs of available materials, transportation, and sales prices rose. Much of that has gone down but the rise in interest rates replaced the cost reductions. Most commodities are lower priced than pre-Pandemic prices. 

            A side effect of the Pandemic is millions of Americans didn’t go back to work. We had a shortage before but afterwards employers were left with a choice of raise salaries or try to keep production going with fewer employees. Competition for workers raised prices.

            We were already short of housing and the Pandemic cut into construction. Short supply and increased demand raised rates for new, existing, and rentals. Higher interest rates made prices increase.

            The Federal Reserve will take credit for lowering inflation but they caused much of it and are keeping it from falling as the original reasons return to normal.