By Patricia L Johnson and Richard E Walrath

It’s amazing how many people in this country blame rising prices [inflation] on our President.  Since inflation is a global problem, blaming our current President makes about as much sense as blaming Donald Duck or Mickey Mouse for the economic downturn the entire world is experiencing.

U.S. inflation for the month of June 2022 was 9.1%, but if you look at the balance of G20 [group of 19 countries, plus the European Union] for June 2022, you’ll note that only five were under 7%, eight came in between 7.01% and 9%, while the last seven were between 9.1% [United States] and 78.62% [Turkey].  

According to Congressional Research Service Insight Report IN11926 current worldwide inflation is due to many factors as follows:

• Disruptions to global supply chains
• Labor shortages
• Temporary business disruptions due to Covid-19 
• Commodity shortages due to Russian invasion of Ukraine

All through the pandemic the labor force participation rate has been incredibly low leaving companies unable to fill job openings.  The seasonally adjusted labor participation rate for the month of June 2022 was 62.2% (published July 8, 2022).  There has been a worldwide chain reaction to delays and disruptions that has had a negative impact on all countries involved.

Without labor there is no increase in productivity and without an increase in productivity, there is no increase in wages.  There isn’t even an argument about it because there is no way to pay for an increase.  As to how to divide productivity gains, there would be nothing produced at all without labor – not to mention nobody to buy the goods and services produced.  Millions of jobs alone have been exported overseas over the past decade (s).

Many citizens in this country are too quick to try to place the blame for what is happening to us on one particular person, or one particular party, group or country.  Numerous factors have led to the current inflation rate both in this country and around the world so there is more than enough blame to go around.

© 2022 Patricia L Johnson and Richard E Walrath

Patricia L Johnson is a former special assignment writer/photographer residing in Northeastern IL. Richard E. Walrath is a former Budget Analyst for Ohio State University, residing in Central Ohio.