I work in international logistics, so I always laugh when people from any country try to blame their own government. Around late 2021 we started seeing a *ton* of price increases coming through the supply chain. They started with raw materials, and then up through to manufactured goods. And every single supplier cited the same reason: They had trouble getting what they needed, because Covid shutdowns, and labor shortages due to Covid sick calls, disrupted their supply chain. It takes these things a few years to work their way through the entire supply chain. But this is not hard to figure out. The global supply chain is FRAGILE. And a disruption in labor caused a ripple that affected all aspects of it. TL,DR: Short term supply chain disruptions lead to permanent price increases, which directly caused inflation. It's all just a symptom of a global supply combined with the regular functions of capitalist economies.


The permanent price increases is the part that really gets me. As obvious as all these patterns are to you (and thank you for explaining) the companies down the line all see it too. But of course, once the price for a product goes up it can never come down even if the cost to produce it does. Hooray for profit, because we all benefit directly from it! Right? Right?


I buy all my meat from a kosher butcher. Just a personal preference. It's always been a little more expensive than regular meat, but I felt it was worth it. Then, a few years ago, the largest kosher meat processor in the US was shut down after a huge illegal immigration investigation. The supply of kosher meat got very scarce very fast as the few much-smaller processors tried to fill the need. So of course, prices on meat went up, by a lot. We were told at the time that it was temporary and as soon as they could upscale to meet demand, the market would self-regulate. I don't think you'll be surprised to find out the price never went down. Why would they, when they saw people were willing to buy the meat at the higher price?


I remember something similar happened after the 2008 recession. Retail companies that were known for good quality utilized craftsmanship and materials that were below par from their normal offerings, but the price stayed the same. After the recession ended they didn’t go back to the quality they were since known for because people were still buying the crappy stuff.


The one thing to balance this out, though, is that prices can go down without the number actually going down. Like, a price that holds steady while other goods (and more importantly *wages*) go up, is becoming easier to pay. The real problem is that wage growth isn't keeping pace with the cost of living, and that's been a problem since long before COVID.


Yeah, the double edge (on the US side at least) is COVID disruptions *plus* deportations. We lost a crazy amount of our work force in less than a year. Not the usual "lost their job".. we lost those *people*, and they won't come back.


Not to mention that over a million people *died*. Sure percentage wise that's not a ton, but it still disturbs the work force a not insignificant amount


It’s political verbiage in ads speaking to magats who can’t remember yesterday and can’t think about tomorrow, unless it’s about “muh” tax dollars, while depositing their tax refund. Its about blaming Biden for causing the “middle class” to pay higher prices in order to distract from horrible anti-choice seditious candidates.


I don't know that this had a ton of effect. Yeah, the overall number that died is awful, but like 3/4 of those who have died were 65+ so mostly out of the workforce, and even among those under 65, those with disabilities (who may have been out of the workforce) were much more likely to die of covid as well. Probably talking about a ~200k difference in the actual workforce, which isn't that large.


The nuanced thing that nobody is talking about is that a significant portion of those who died where working class "nannas" and "pop-pops" who watched their grandkids while momma or dady worked. Their deaths had a disproportionate impact on part time and service jobs as the cost of childcare is so expensive that it is not worth it without their economic inputs. Think that through from a few different possibke human experiences and you will realize something.


Nail on head.


That's 200k deaths taking people from the workforce but that doesn't take into account the millions of people that retired early or became disabled due to COVID or something COVID adjacent, the 100k's of people that had to switch to being a stay at home parent because childcare was unaffordable or unattainable and the 10's of thousands that just gave up trying to find a job for many reasons during this time. We're almost at pre-pandemic unemployment levels but we're also down several million workers.


There's also a huge shift in careers as well. I'm interested in data on how many nurses and teachers changed careers.


You also have *a lot* of people with long covid, and other neurological disorders post-infection. At best those people can work reduced hours. But many of them cannot work anymore, which must be a living nightmare for those people.


Where do you live that the majority of people are able to retire at age 65? I personally know A LOT of people who will never retire, are well over 60, some over 70, and they are still working as employees. Yes, I live in an area where the average age skews quite high and the cost of living is even higher, but folks staying in the job market past age 65 isn't that rare of a thing anymore.


We need to Jedi mind trick Abbot into bussing them back to their old jobs once they cross the border


Yeah, they talk about a 'crisis' at the border, based mostly off of numbers that actually show most of the people trying to cross are caught. But even then, back in the 90s when the border actually did have millions flowing across, I don't remember things as a crisis. And most of the employers struggling to find workers now had plenty of them. Take away that flow of labor as we really did over the last 5 years but especially once the pandemic started, and of course we had predictable results. My state has like 2% unemployment. We *need* the immigrants. Instead our governor is more interested in sending highway patrol down to do stunts at the border.


Demand has has to go down for prices to go down. If demand stays the same then there’s no reason to lower prices. This is actually a really interesting example because the demand for kosher meat is logically relatively inelastic because people who need kosher meat can’t just change purchasing behavior unless they cut down or stop eating meat.


>Demand has has to go down for prices to go down This idea seems to make so much sense. However, the small businesses in the small town that I live in are pretty goofy. *Demand is down, we aren't making enough money.* Then they go and raise prices to counter the effect of lower demand thinking that the increase will offset perceived losses. Unsurprisingly, demand for a *higher cost* version of a low-demand product/service drops even further. Then they go out of business and then they blame it on whoever their political devil is at the time instead of maybe just trying to have a little bit of common sense. I admit though that even though the right course should be to lower prices a little bit (to help drive demand), it does really seem counter-intuitive, especially in the short-term. Devil is in the details and longer-term planning. But modern internet age people don't have those sorts of attention spans. :)


Not "willing" but "forced" to. Not eating kosher isn't an option, you have to do this. Granted you could go vegan/vegetarian but you can't just switch to non kosher meat. Being Jewish is fucking expensive as all hell. The food, the schools, the required days off so you don't get a normal vacation some years (double whammy if you are a contracted worker), the synagogue membership dues, the social pressure to host meals for friends, the clothing, housing (need drive up rent and homes), etc etc. It is fucking exhausting. I make more than I ever thought I would and I still don't feel financially secure. Sorry for the rant. Had to get it of my chest.


Hello fellow member of the tribe!! It is insanely expensive.


You could... Stop being Jewish?


>Why would they, when they saw people were willing to buy the meat at the higher price? Competition?


Lots of people in this thread seem to be missing this.


That customer base is fixed because of religious motivation. If cola becomes to expensive, people will stop buying it or cut back, driving down prices. Someone that can make the cola cheaper will do so.


To be fair, that *is* the market self-regulating: they discovered that they were undercharging their customer base, and that the market would bear a significantly higher price, meaning they had just been leaving money on the table beforehand. However, you can *also* see how lower-income individuals get priced out of certain markets thanks to market self-regulation. That’s called gentrification. And it’s bad, kids.


It would also allow someone to make a competitive product if everyone is price goughing


In a lot of established markets the price of entry is way beyond your miniscule profits you'll gain by momentarily outcompeting someone before they drop their prices If you're doing the same thing they are doing then they can drop their prices as low as you can. Except you have just invested into building a new facility while they didn't. You risk a lot while they don't risk anything


This a great explanation of why we're not seeing the deflationary effect of new competitors using high price points as an opportunity to enter the market, but one thing that's really bugged me over the past couple years is how existing manufacturers have also declined the opportunity to increase market share. This seems like a failure of the competitive marketplace, and it seems to be occurring across industries. But why? I only hope there's a robust research effort poured into determining the underlying factors that led to capitalist principles failing us this time around, so we're not stuck in bread lines again like some failing communist state.


Without specifics it's hard to give a specific answer, and there are bound to be many factors and reasons in each individual case, but generally speaking competition is bad for those who compete. They don't actually want to compete and they don't want any competition. And outcompeting another guy is just a tool in trying to not be engaged in a competition. But there are many other tools, often more robust


That's how money is supposed to work. Inflation is bad, but deflation is absolutely disastrous. It's far better for wages to go up in response to inflation than for prices to go down. Right now, the capitalist class is fighting tooth and nail to keep wages from going up in response to price increases. They are willing to crash the economy in order to keep it from happening. Because once wages go up, they never come down either.


Agreed. Capitalism is only as bad as we allow it to be, and it's fairly predictable. It wants to stack money as tall as possible, and every once in a while we need to make a conscious, active effort to spread it out because it is supposed to be cyclical. We need to embrace the cycle, all parts of it, and use our ever-improving analytical skills to make it efficient and fair.


I’m not against capitalism, but if left unchecked, capitalism turns into feudalism. Command economies are terrible ideas, but some form of wealth redistribution is needed for the free markets to continue to function. The wannabe lords and aristocrats spent a lot of effort making capitalism an end in itself. It’s just a 21st century version of the divine right of kings.


That's why I am and have been a UBI booster for years. It's system agnostic and fixes so many economic problems it's ridiculous. Sure people in the higher wealth brackets have less wealth, but realistically what's the difference between having 20 billion and 10? You still have more money than you'll ever need.


UBI seems to be the most pro-market solution to income inequality.


Totally. It eliminates the need for a min wage or unions because employees are truly operating in a labour "free market" and can walk from a job at any time if it doesn't live up to expectations. It eliminates gatekeepers (usually governmental) that can put all sorts of restrictions on who is and isn't eligible for benefits, and why they are categorized thusly. It can eventually consolidate all the various piece meal programs that attempt to deal with the inequality problem into one overall program which is much more efficient. Also employers no longer have to give out a minimum amount of hours either in total or per shift, or provide any sort of benefit package. And they will no longer have to offset automation putting workers out of work. It reduces, if not outright eliminates economic depressed areas because there's an economic floor that activity can't fall below, which also means less economically forced migration for employment, and so on, and so on. IMHO it's a total no brainer and benefits everyone, period.


Also, the pandemic gave us a brief taste of what UBI would be like—and it scared the hell out of the aristocrats.


Yep, pure capitalism will optimize to the point of monopoly and undermine the actual point of capitalism. You need a balanced approach that takes the long term interest of the country and populous into account. This is why effective govt is so critical to capitalism functioning correctly


I can't wait to make 2 million and hour so I can buy my 1000 dollar carton of eggs.


That’s how the Italian Lira worked, and how the Yen still does.


Implying you can buy 2000 dozen eggs an hour with your current wages, giving you a current hourly salary of $6000 / hour




Our grandparents would be shocked at making $50,000/year and paying $2.00 for a dozen eggs.




I’ve heard multiple times deflation is bad but it’s never made sense why. The argument is people will wait for prices to go even lower, thus causing demand to drop, and prices will plummet until companies go out of business. Is it just me or does that not make any sense? In a consumer centric economy people buy what they want, when they deem it’s worth the cost to them.


The big problem with deflation is debt. You take out a loan for 250k to buy a $250k house. Then deflation hits and your house is only worth $200k. And instead of making $100k/yr, you’re making $80/yr. In one sense, your situation hasn’t changed. Your house value to income ratio is the same. But your debt has not. And the payments on your debt have not. If the bank were to foreclose, the value of their collateral is less. Multiply this by millions of debts and this is a big problem. This is what happened in 2008. In an inflationary scenario, you bought a $200k house while making $80k. Now you make $100k and the house is worth $250k. But you’re only paying for the loan on a $200k house. The bank’s position is secure (though they might have lost real value, the debt will be paid).


That's not really the initial problem. The initial problem is that it makes no sense to offer someone a loan (i.e. debt). If deflation was 10% then you'd "make" $10 on every $100 you have. You'd have to charge an exorbitant interest rate to even consider lending money to someone. When your entire economy is based on lending, this crashes everything as there's no longer any liquidity. Any collateral backing loans is instantly devalued as well.


I mean once your salary increases, it doesn't go down either. I got salary adjustment of 30% last year and around 15% this year...it's not going back down lol


What I'm implying is that wages have not risen proportionally, which is the mechanism by which profit is good for all of us. It's assumed to be part of the process but it's not granted, we have to actually administrate it.


Wages have though. My company is paying nearly double what they paid in 2020 to the lowest tier worker. Nearly all fast food chains are paying $15+ in areas that they were paying $10 or less in 2020. 50% to 100% increase in wages is substantial.


>The global supply chain is FRAGILE. I'm sure you know this, but thanks to the expansion of Just In Time (JIT) delivery it was also much more fragile when Covid had its impact than it would have been a couple of decades or more ago.


I've heard this before and I don't doubt it at all. How can you survive supply chain disruptions if you don't plan for them?


It's a good example of what happens when the "bean counters" are only listened to when it comes to increasing profit but are not listened to (or tasked) when it comes to calculating the financial effects of risk.


Important to add: companies are putting their thumbs on the scale **hard**, increasing prices beyond necessary to maximize their profits during a global crisis just because they can. (source: record profits)


There’s gotta be a breaking point right?


That happens when people start having to choose between heating the house and feeding the family.


There has always been poverty in major developed countries. So poverty will go up, many more will suffer needlessly. The question is what equilibrium will our civilization tolerate? If people organize and push back, capital will give some. Otherwise if there is no meaningful push back, why would they change? Suffering of others has always been easy for them to insulate from. People will exercise their power for a better standard of living, or they will simply live worse lives.


Thank you for this great explanation.


Based on this explanation, I will take a guess that "Biden blamers" will point to his short role in COVID era restrictions and mentally-gymnastic-flip this to be the sole reason for inflation, even though every major country in the world did the same things and that cumulative effect caused the supply chain issues and subsequent inflation. It's just average blue collar Fox News viewers being handed a simplistic explanation within a subject that is over their heads. They don't know anything about global economics.


Even if the USA had never had any Covid restrictions, that would be irrelevant to disruptions in China and global shipping.


Even here in allegedly Commie California we mostly had Covid Suggestions, not any real Covid Restrictions. Nothing with any teeth.


Orange County be like - what COVID?


People are easier to control when you manufacture a common enemy to hate.


Religion tactics 101


That's because Faux News watchers are smooth brain imbeciles that think ole tucker is smart and wouldn't lie to them.


Can't argue with that. Tucker is a master storyteller/manipulator. The easily fooled are no match for him.


I've always said that to people I'm discussing this with. It's because businesses couldn't get materials, and people were inside either sick or whatever not buying stuff. Then they came out of hiding and bought everything up so finished products were scarce while supply chain was still behind.


The secret is that people blame whatever government is in power for it, regardless if it's their responsibility or not.


As another logistics guy… it makes me laugh that this is a “new” problem to most. It’s been my life the past few years so it’s interesting to finally see it hit the avg consumer and see them shocked all of a sudden


While that is true there are quite a few things the Feds (US) did to drive demand. They flooded the market with cash through treasury buybacks, dropped suggested interest rates to the floor to encourage borrowing, deferred certain payments (student loans, evictions so basically rent), and handed out money. They made it cheap as hell to borrow and then gave everyone a bunch of money for down payments. They also limited what you could spend it on by making gatherings borderline illegal. I know multiple people in the car, RV, furniture, etc. industries that set monthly records in 2021 that won't even be touched anytime soon because the demand was that intense. TL;DR: Fed caused demand to skyrocket with several levers, supply chains woahs caused supply to go down. Naturally, price went (way) up.


I also predict that it's going to take longer than usual for a recovery because places like China are still trying to get to a "Covid Zero" status as of today. They are still rolling shutdowns to cities where some major manufacturing takes place. And I honestly don't know when or if they'll "throw in the towel" on that approach?


O mah fuggen gawd, an intelligent, informed person taking the forefront on this. Thank you for posting here.


As someone who works with product and supply chain, can confirm. I get all the same jazz ie; shortage of material, etc even with overseas suppliers. It’s interesting that I hear ‘cause Biden’ as anyone in supply chain knows, it can take several years before the ripples settle down. I just shake my head.


That's part of it yes, but you forgot about massive elephant in the room, the printing of money.


Because it's easy to blame the guy you already hate for something you didn't even believe was real until more recently.


Deep down, many of them know that the US President doesn't directly control the global economy, and certainly doesn't control it in an immediate way. They just think they can fool other folks. It's a dishonest argument that's made in bad faith.


Wait I thought it was Trudeau’s fault.


I thought it was Macron's fault?


Nope it's Arderns fault


Bitch please, it was that Merkel lady


Oh I'm sure we can all agree that Putin is to blame


He is mostly to blame for this years gas price hikes.


You mean the Justinflation? Pfft. -Mr P.P.


If you hear someone blaming a single politician for global inflation, they are actually telling you they are not too bright. Listen to them.


They do it all over the world too. In Canada the conservatives are calling it Justinflation.


each country blames their own leaders, makes no sense


Because most people are fairly unaware of how the world works. They assume their leaders have god like powers over things. They fail to understand the complex interconnectedness of the world economic system. Then there are partisan trolls who are pushing an agenda for power. It’s like how many Americans extol the wonders of capitalism but refuse to invest in the stock market because “I could lose”


I remember when the Russian Invasion and subsequent sanctions caused gas prices to go up because the global supply of oil got cut. And people were quick to blame Biden because the US buys Saudi oil. Ignoring the fact that now Europe is also buying primarily Saudi oil now. Increased demand but not as much supply increase.


I saw someone commented on a friend's FB post about high gas prices a few months ago with some genius comment like "Thanks, Joe." So I asked him, if it's Biden's fault gas is expensive, why is it super expensive everywhere else in the world, too? His response: "It's not just Biden, it's the Democrats' insane policies." Um, the Democrats are also just here in the US, how is that an answer to my question? Still waiting for him to answer.


My father made a similar comment, I asked him what Biden did to raise gas prices. He said "shut down the Keystone pipeline. It's basic economics, you reduce supply and prices go up". I pointed out that the keystone pipeline was never active, and so the supply of petroleum never changed. Also global prices have all gone up, not just American prices. He had no response (but I'm sure he still blames Biden).


Also, the Keystone XL would have only moved a fraction of 1% of the world's oil. And that oil is already being moved, just by trains instead of a pipeline. It would have virtually zero effect on gas prices but you can't tell these things to people who can't handle anything more complex than "Biden bad!"


> that oil is already being moved, just by trains instead of a pipeline Nah not even, it's already being moved by the Keystone pipeline. Keystone XL was just a proposed shorter route than the existing pipe. And XL doesn't mean "extra large" (it's not bigger and wouldn't move more oil), it means "export limited" ie the reason the pipe goes from Alberta to Texas is so the oil could be loaded onto ships and exported (from Canada to countries that aren't the US).


For a slightly more intelligent version of what your dad said, prices do not reflect just the current supply, but also projections about future availability. Whenever a shortage is threatened, you'll notice prices start rising fairly rapidly, not just the next time the gas station fills up its tank. So, closures or delays of pipelines that are not yet active can still affect the prices because they increase pessimism in the market outlook. I don't think the Keystone pipeline alone is enough to explain the current prices, though. That gas is still getting used, it's just getting trucked instead of piped. That's more expensive, but it's not \*all gas in the US is several dollars more\* expensive. It's perhaps a negative factor, but a small one among a number of other factors.


Well, the other factor is the gas companies can boost prices and they know they will be shielded from blame because the American populace will blame politicians.


Oil companies blame Democrats, people elect Republicans, Republicans cut oil companies taxes. I must be missing something cause that sounds fishy


logic has nothing to do with how those people rationalize (or dont) problems. their identity is weak, and centered entirely around their politics. they'll defend it until they pass out, because allowing anything to change that perspective is changing the self. those people have nothing to offer the world, because they're wrapped up in being a political ideology, not an individual. Biden's administration could create the solution to world hunger, slash the prices of utilities, and institute healthcare solutions that dont gouge the average citizen. there'd still be some bullshit about "muh freedoms", some fuckery about "i dont wanna wear a mask", "damn democrats and their pedophiles and pizza basements", just the same tired tirade of nothing particularly meaningful to say or contribute. they dont have to make sense, because it just makes them feel good to hate something else. that's it. that's the extent of the republican party. band together under a banner of animosity.


Well there is a Keystone Pipeline, but he closed down the construction of an extended piece of it. It wasn't even complete though, and only provided TEMPORARY jobs. Not to mention the pipeline only goes through our country but we weren't benefitting from it.


I saw a piece on Fox where they were "explaining" how that worked. It blamed the Green New Deal (which isn't a law and isn't in effect in the US) as Biden's creation (which it isn't) and then said that the "ideas in it" have spread and infected the leaders of the other countries who then pushed the same changes (again, that never happened) and caused the inflation.


Was this recent? I ask because I've seen a uptick in bitching about "the Green New Deal", and I kept wondering why, given that it's not a thing. But this would explain it - just another line of BS from a propaganda news feed.


Midterm elections are coming up so they are bringing it back into the rotation of their scare tactics.


The bit I saw was maybe a month or two ago. Conservatives are also desperate to trot out every scare tactic and boogeyman in their arsenal right now.


Presidents do have an effect on these things. Notice that when [Trump negotiated with OPEC to raise gas prices](https://www.reuters.com/article/us-global-oil-trump-saudi-specialreport/special-report-trump-told-saudi-cut-oil-supply-or-lose-u-s-military-support-sources-idUSKBN22C1V4), that's when the gas prices started going up drastically. Biden negotiated with OPEC the other way, to bring oil production back up. And that caused gas prices to come down. So it's not that a president has no control over gas prices, it's just that there are a lot of other factors involved (such as supply chain issues and the war in Ukraine).


Perhaps due to the outsized influence the US plays in both global economics and global power? It’s not black and white.


It has nothing to do with reality. Their audience doesn't know about or care about the actual cause or solution to the problem. They don't care about the cause or solution of any problem. They care about blame, and weaponizing that blame.


Partially it’s because the USD is the global reserve currency. Whatever happens to the dollar (and the US economy) effects the rest of the world. That’s why the US housing crash was felt around the western world while the Japanese crash wasn’t felt. That’s a 5,000 ft explain like I’m 5 reason.


No single government and especially no single individual is responsible for the current global economic situation. The closest thing to an individual fucking things up is Putin just throwing wrenches around like a dumb fuck. All that being said, I fee like this a great opportunity to remind everyone to stop putting so much stock into the US presidency. The President does not write legislation. Collectively urge congress by voting to get off its ass and do something. Inflation could also be tackled through taxation and other legislative efforts in parallel to the fed raising interest rates. Fuck if congress would actually raise taxes on the rich and corporations maybe the fed wouldn’t even have to raise interest rates this much.


This. Vote. Locally. Nationally. Every election. But that takes work and effort. People want to just tune in for the big blockbusters


Local and state elections are often far more impactful than the national election (although still important)


Extremely impactful. Just look at how gerrymandered most every states own house maps are. Republicans absolutely dominate state legislatures, but they aren’t even close to dominant in terms of the actual votes. This was allowed to happen right under the noses of voters, because no one was paying attention outside of the base


I totally agree, but I think a problem is that while congress is sitting on it’s thumbs, playing inane games, gives whoever is POTUS a reason to use EO to get things done. It has the effect of expanding the power executive branch.


If any one person held more responsibility though I’d say Jerome Powell would be #1.


In a world that’s insane, why’s American to blame?


The US Dollar is the worlds reserve currency, and is inextricably linked to the world economy.


We've been divided into teams. Anything that ever happens now can used by the 'opposing team' to be shitty. That's it.


Conversely any criticism of said team is automatically assumed that it's coming from the position of the "other team" The Overton window has become a tiny sliver for most, not realizing that there's a broad spectrum of ideas outside of that tiny little slice of worldviews.


The most telling thing about the conservative push of this talking point is that they don't actually have a plan to fix it. I'm sure they would pass more tax cuts for the rich and call it a solution if they were in power.


Oh, but they DO have a plan. Their plan to fix is it is to slash and burn the few tatters left of the social safety net in order to reduce demand and get people more desperate to take low paying jobs.


> they don't actually have a plan to fix it. They never have a plan to fix anything. They spent many years attacking Obamacare and chanting "repeal and replace," but even when they tried to repeal it they had no plan whatsoever to replace it. They hadn't even begun to think about a replacement because they had no intentions of replacing it.


They absolutely had their chance to do whatever they could during Trumps presidency but they squandered it on...checks notes...tax cuts for the rich and install supreme court justices to be a thorn in our sides for decades to come. Edit: Oh yeah they passed motherfuckin legislation to keep insulin at the prices it is too and blocked expanded veteran coverage. Eat a bag of them, you piece of shit conservatives.


Why don't they just use trump's plan, he just needs 2 more weeks to finish it. /S


It's too bad all his research material was confiscated. ^^/s


They use meaningless marketing slogans that everyone (including the opposition) thinks are real. “Law and order” was another one.


Are you saying trickle down economics doesn't work? Because it is definitely a term I have heard used. /s


Looking at the UK 👀😳


Whenever a Republican blames Biden, ask them what he did to cause the problem, then what he should do to fix it. Also, ask them what's wrong with America if they support "making America great again". They can't answer without being racist.


Twenty years ago, Colbert made that point. It was interesting, because Trump came along and broke his assertion that you "can't" say America isn't great. > Re-becoming the Greatness We Never Weren't


I blame the pandemic.


I blame greed.


printing billions of dollars didnt help.


Try upwards of 13 Trillion dollars.


This has been building since 2008


Cause your electives are the ones passing the bills which allowed printing 40% of the entire US dollars ever in existence to be printed in 2 years. Your electives fucked every 3rd world country who had US dollars as their national reserve. US Dollar being devalued has a million times worse consequences for the 3rd world countries than the United States. Hopefully most nations stop trusting the US dollar by the end of this and replace their national reserves with currency to other currency other than the US dollar whose government isn't a clown show. PS: I'm from a 3rd world country.


The only people blaming Biden for inflation are idiot wingnuts who want to cry about anything he does and make it a talking point and people who have zero understanding of either global or domestic economics. In the Venn diagram of this, the idiot wingnuts are entirely inside the group of people who don't understand economics.


I overheard the answer to this question at work today when people were talking about their 401k. They mentioned not looking at your 401k of you’ll “be sad” And then the next guy went to say shit like “i guess they shouldn’t have went against the mean tweeter” They only care about their own wealth and all they see is their own wealth going down during the Biden administration. It has nothing to do with anything but that.


In Canada people blame Justin Trudeau. The leader of the opposition even calls it "Justinflation". Same same but different!


To be fair, if we agree that the current administration is not to blame for inflation, then we also must agree that they cannot take credit if/when inflation comes back down. (The same goes for gas prices)


The global economy is largely driven by the US economy though.


Well printing a shitload of the USD has some impact but he's not sole to blame. COVID had something to do with it.


I think people are blaming the level of inflation on Biden. When he campaigned on taking a hard line on oil companies they were less likely to invest in the us, so gas prices spiked in the US. Second, a lot of the spending by the government helped stimulate the economy, which is good, except leads to inflation especially when we were already doing well. This is is on both administrations. Lastly, a lot of countries economies rely on the US, so if we have high inflation it will also affect them. I think it’s important that we don’t just think our government is perfect and we may have been able to do things differently, no matter who is president.


It’s on neither administration, unless you think Trump could have done more to prevent the *global* impact of COVID, which I think even most Trump haters will admit he couldn’t have. The US, sure, but even if the US never caught a single case, global logistics would still be fucked. Biden took office after the damage was already done, it’s certainly weird to blame him.


> When he campaigned on taking a hard line on oil companies they were less likely to invest in the us, so gas prices spiked in the US Not really true. As with anything, the real non partisan answer is complex. Starting with the fact that not all oil is equal. you may have a ton, but it might not be what you need to make gasoline. And you may not have the refineries to actually refine the specific type of oil your country can produce. And doing anything in America is expensive because Americans are expensive. So investing in refinery capacity, or utilizing the permits you already have but are on difficult places to extract oil becomes a serious investment. (for the record there are 10s of thousands of unused permits that were given out by both Trump and Biden) And then there comes the issue of the Saudis. On average their oil is better quality. It is easier to attract. And because life and land is cheap there, so is building out refining capacity. So the bottom line is that US based operations cannot get oil out of the ground and refined cheaper than the Saudis can. We just cannot. Full stop. So if American companies invest billions of dollars into drilling and refining infrastructure while prices are high and attractive... and afterward the Saudis decide to start pumping like mad, prices will drop through the floor. They will have them by the balls. The Saudis can weather low prices because it is possible for them to turn an actual healthy profit at prices so low that US companies would take a loss on each barrel extracted and refined. So that means the Saudis are in control. On top off that, they de-facto control OPEC. So these price risks limits the appetite for investment risk of US based companies. The actual US govt policy towards the industry has an effect, but it's more about padding the balance sheet or not. They don't change the underlying fundamental economics of not being able to do it cheaper than the Saudis can. And I fully acknowledge that I'm still oversimplifying things. The truth is far more complex that the news, or any politician, or any Facebook meme has time for.


A lot of people in Canada blame it on Prime Minister Justin Trudeau, calling it Justinflation.


My simple economics classes in high school taught me this. I seriously don't understand how people can't comprehend it.


Because his opposition is blaming him and the dummies that vote for them believe it.


They only get be their info from right wing partisan news sources. Not world news


In Canada they blame Trudeau.


Because Jesus n’ such!


Same reason people in Canada blames Justin Trudeau.


Manipulation from the opposition. Here in Australia it's all the Liberals (our right) have, since they don't seem to care about actual Australians in the slightest. But raise a scare campaign that Labour (our left) wants your money and they end up with less than a full term the last time they won. Even with all they're doing now to repair the damage to this wonderful country, the people only hear what big media tells them. More manipulation. The cycle continues.


For the same reason they blame him for high gas prices despite the president having nothing to do with that. Some people don't like him and want to blame him for anything bad in the world.


In sweden people (seriously) blames the environmental party, which had like 5% of the swedish votes.


US national debt was at $6 trillion when 9/11 happened. It's currently over $30 trillion. You people blaming the Republicans or the Democrats should realize that both your parties did this over the last 20 years.


Why are people blaming Biden? He thinks inflation is what happens when he visits a 5th grade class.


Just want to point out that in this week alone we have seen UK government policy drastically devalue the pound and they only narrowly avoided complete 2008 level collapse. Directly due to government policy. Not saying this kind of thing is to blame for broad global inflation and supply chain disruption from covid, but individual governments can and do make mistakes that fuck their own currency values. Also while the war in Ukraine/covid/supply chain are all legitimate problems causing economic strife across the globe, you can absolutely count on every slimy politician to blame those external factors to cover up their own domestic failures.


I find it funny, how people here try to tell others, that the global crisis just came out of nowhere, covid came from a bat soup. Christ people, the government is never for us, it's always against us. They keep raising taxes, fuels, and keep bringing us down. They don't want us healthy and wealthy. Fuels going up because of the war on Ukraine? Come on. Wtf.


Republicans blame any democrat and democrats blame any republican. There's so much fighting between the sides I don't know how they get anything done. I'm so sick of this ridiculous 2 party system where our presidential elections always come down to two idiots. The primaries exist for eliminating intelligent candidates in favor of charismatic ones.


US government is not solely responsible for inflation but it does have a huge impact on the global economy. You can track many things based on who is in office. For example the republicans are in bed with the oil company, so they loosen regulations on the industry which will/does drop prices. The democrats are in bed with the pharmaceutical companies which you can follow when regulations were loosened for them. During those years you can see how the high officials of pharmaceutical companies are interchangeable with the FDA.


It is easy. Republicans think the USA is the entire world.


It doesn't matter which party is in power the fact that people are blaming it on someone means that it's working. The two party system makes the public feel like they have a choice when in reality they dont, but they feel like they do. So when their team loses they can blame the other team for all the things they don't like that's happening. Meanwhile the rich just keep making our money because everyone's too stupid, and pacified with the current leader to realize what's really happening. Like the other comment said it's really just comes down to a supply chain issue domino effect. I personally blame it on the Evergreen ship getting stuck in the canal. Several people that said that would cause domino effect leading to inflation, but here we are idiots blaming one party or the other instead of the boat that liekly kickstarted it all.


Fairly simple really. Biden isn't Trump, and to some anyone who isn't Trump is an America hating satanist baby eating demon.


because oil globally is traded on the U.S. dollar


Because the economies of the world depend on each other for supplies and demands, and the USA is extremely influential in that supply chain because we are one of the biggest spenders, both in production and consumption. Printing US dollars at the rate we are reflects on a global scale because of the way money is distributed globally. Without getting too in-depth, the USA has increased the money supply on the market. This has shifted the supply-demand curve. In turn, to combat inflation (which is basically more money in supply than is being demanded), interest rates are increasing. That’s on a micro scale. The interest rate increase on a macro-scale means that investors are less likely to burrow money, because it costs them more, so that shifts the demand curve globally. Less demand to borrow money means less buying/investing/producing. Imagine you want to buy a house and in 2020 it cost you $1000/month for 30 years for your mortgage. Now in 2022, it costs you $3000/month for 30 years for the same mortgage. You’re probably not going to buy it. Now scale that up to a level like China. It used to cost XXX to produce something, and now it costs XXXX. You’re probably not going to continue to produce that thing, or you’re going to find a way to either make it cheaper or cut costs somewhere else. Now think about that globally.


Nice to see someone can follow the money here. Happy cake day btw


Umm maybe because we continue to increase the money supply by passing spending bills. Or maybe the current administration is against traditional domestic energy infrastructure development.


obviously biden is also responsible for the yen collapsing. dammit biden


# Because the US Federal Reserve has been i[ncreasing inflation rates at home](https://www.google.com/search?q=federal+reserve+increase+interest+rates&oq=federal+resere+increas&aqs=chrome.1.69i57j0i13l9.4535j0j4&sourceid=chrome&ie=UTF-8). Most countries use the US dollar as a "[reserve currency](https://en.wikipedia.org/wiki/Reserve_currency)." By increasing our inflation rate, every nations' economy has been upset in one way or another. Of course how those nations response to the Fed's actions also contributes. An easy example of how this has upset the status quo is to take a look at the [pound sterling](https://www.google.com/search?q=pound+sterling&oq=pound+sterling&aqs=chrome.0.0i131i433i512l3j0i20i263i512j0i131i433i512l2j0i512j0i20i263i512j0i131i433i512l2.2421j1j7&sourceid=chrome&ie=UTF-8). While Biden appoints Fed Chairs (senate confirms), he doesn't tell them what to do. Although some argue he should, they are supposed to be the experts. It's easy and somewhat apt to blame the person who asked for those chairman. The Fed so far has [contributed to current recession](https://www.nerdwallet.com/article/finance/are-we-in-a-recession) more than they have abated it for the planet. "*The Federal Reserve, after issuing five interest rate increases this year — the latest on Sept. 21 — is not trying to trigger a recession, but does want to slow the economy. Lowering consumer demand is the tricky elixir intended to reverse the higher prices we face with inflation. The risk of a recession is always a possible side effect.*"


**[Reserve currency](https://en.wikipedia.org/wiki/Reserve_currency)** >A reserve currency (or anchor currency) is a foreign currency that is held in significant quantities by central banks or other monetary authorities as part of their foreign exchange reserves. The reserve currency can be used in international transactions, international investments and all aspects of the global economy. It is often considered a hard currency or safe-haven currency. The United Kingdom's pound sterling was the primary reserve currency of much of the world in the 19th century and first half of the 20th century. ^([ )[^(F.A.Q)](https://www.reddit.com/r/WikiSummarizer/wiki/index#wiki_f.a.q)^( | )[^(Opt Out)](https://reddit.com/message/compose?to=WikiSummarizerBot&message=OptOut&subject=OptOut)^( | )[^(Opt Out Of Subreddit)](https://np.reddit.com/r/AdviceAnimals/about/banned)^( | )[^(GitHub)](https://github.com/Sujal-7/WikiSummarizerBot)^( ] Downvote to remove | v1.5)


Also, the president has never been able to change gas prices. Biden shouldn’t be blamed for high gas prices, just as Trump shouldn’t be praised for them being low.


There are people who blame Obama for 9/11. Obama wasn’t even the president then. In other words - people are stupid and miopic. Especially the right wing IMO.


Because they're idiots


It’s obviously not Biden’s fault there is inflation. However the fact his inflation reduction act requires the printing of an absurd amount of cash shows unequivocally how weak of a grasp on monetary mechanisms his government has.


Which part of "his" reduction inflation act are you claiming is "printing an absurd amount of cash"? I've only read summaries of it, but none of those were cash printing. CBO declared it a net decrease in deficit.


Which country would you say is doing better on inflation than the US, and what are they doing differently?


Always funny to see the wave of people rushing to defend biden from literally anything. 😂


Fuck Biden. Fuck that doddering old man that took his "I'm voting against Trump" victory straight to the god damn bank. Fuck him for making progressive promises to the people and then fucking them in the ass to please his lobbyists. Fuck that guy sideways. America's inflation problem (also gas prices) was ***not*** caused by Joe fucking Biden, and the people that think that are partisan tribalistic idiots cheering for their side without understanding how things actually work. Trump was worse.


The conservatives in my country (New Zealand) are also blaming the government for inflation. But that's what conservatives do: they throw shit constantly, hoping that some of it will stick!


Inflation is a direct by-product of the constant need to increase profits for shareholders.


Greedy capitalists can only make more profit by convincing you to buy their product over their competitors. It is in the best interests of greedy capitalists to sell you products cheaper than anyone else can. That's the best way for them to make profit.


Literally what. How can someone be so wrong and yet have even 1 upvote. Pick up a macroeconomy book my man


Usually when ppl say "global crisis" they're referring to the US or UK because naturally those are the only two places on the planet.


The US has been hit worse than other countries like France. Biden also approved massive spending packages which he was warned would increase inflation. Inflation is a global issue but it doesn't mean that none of the blame goes on Biden for US inflation.


Because people always blame the President on things like gas pricing, inflation, etc. No matter how little impact they can actually have on the matter.


Ask them. Most of them do not have an answer...just misplaced feelings.


Because idiots think that America is the whole world.


The trillion dollar third stimulus check, the trillion dollar infrastructure bill, the half trillion dollar "Inflation Reduction Act" (that does nothing to reduce inflation), and the half trillion dollar loan forgiveness Biden isn't solely to blame, but he's pouring gasoline onto the fire.


Because Americans are certain they are the center of the universe and that other countries don't really exist. Especially those who don't like Biden.


Americans are blaming Biden for literally everything from the rise in gas prices to the war in Ukraine... It is the Republican playbook... Blame, lie, play to ego, play to fear, rinse/repeat.


Republicans act shockingly similar to my 6 year old.


If this happened under Trump you all would blame him. Don’t pretend for second you wouldn’t.


Just politics, is nothing new, and both sides do it. When in power you take credit for the good, and say the bad is outbof your control. When not in power, blame the other sode for the bad, and claim they didn't control the good. Obama blamed Bush for 2 years or more for "handing him" an economy that was about to sink. Trump did the same to Obama. It goes back forever.


Except if you look at the data, Obama handed a solid economy to Trump. Trump handed a sinking ship to Biden. COVID is mostly to blame for that, but I think we all agree Trump handled that very poorly, contributing to the problem. So, they don't "both" do this. There is a long history of one party f-ing up the economy with tax breaks for the rich, and the other party having to clean it all up and balance the budget again. It's a pretty obvious pattern to be honest.


Would the same defense be used if orange man bad was in office?


Probably people are upset about the Inflation Reduction Act, which hasn’t and won’t really do anything for inflation.


Pretty sure Biden is to blame for anything illegal trump does according to republicans


People who blame Biden for a global meltdown are the same people who followed the orange president. Clearly logic is not required.


Because only the libs cause catastrophe. Half the term is fixing the Republicans fuck ups and undoing their awful policies and repairing foreign relations. That's why they think libs do nothing while in office.


I think their argument is pretty straightforward: 1. Printing a huge amount of currency normally leads to local inflation. If the Russians print a bunch of Rubles like they did in the 90's, for instance, then the Russians will see their prices go up accordingly, while the rest of the world does not. 2. The US Government printed a crap-ton of dollars recently. This would normally lead to local inflation too, which we are seeing to some degree, though less than expected. 3. However, since the US Dollar is basically the dominant world currency, and the US imports way more than it exports, a lot of that inflation gets "exported" overseas. I don't really pretend to know about economics enough to endorse or dispute that logic, but it seems to make at least intuitive sense.


But the vast majority of that money which got "printed" was done so under Trump. Not Biden. Biden has slashed spending from Trump era levels.