LINK Rising fuel prices and corporate profits — not wages — are chiefly to blame for inflation
With U.S. inflation surging at the fastest pace in 40 years, many companies are blaming higher prices on having to hike wages for their workers, including Amazon, Starbucks and Chipotle.
Consumers are getting the message. As one reader of the Fort Worth Star-Telegram wrote to the editor: "You wanted higher wages, products made in America? Then you better accept inflation," she said. "You asked for an increase in minimum wages. Which led to an overall increase in pay. That increase has been passed on to consumers."
But while corporations may point fingers at rising pay, economic data show wages are far from the main driver of inflation. The prices growing fastest today — cars, fuel, housing and furniture — point away from wages and toward other explanations, such as goods shortages or companies padding their profit margins. More broadly, it has long been clear that the relationship between what workers earn and what consumers pay has been tenuous at best.
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Feel free to reply to any comment by clicking the "Reply" button.Didn’t have those issues under Trump though
CourtJester
Level 7
Feb 23, 2022
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Current inflation started at the end of Trump's term, mostly due to supply chain issues caused by the Covid-19 pandemic. So, yeah, under Trump inflation was a problem, as it started in his last year in office.
@snytiger6 What has Biden done to improve anything?
@CourtJester There isn't much that can be done when a pandemic influences economic issues. One thing Biden has done though is, unlike Trump, he didn't pretend the pandemic would just go away. The U.S. had had over one million confirmed Covid-19 deaths and it is likely that there are many more unconfirmed Covid-19 deaths, that were not attributed to Covid-19.
However, somehow under Biden with Covid restrictions in place, the economy grew its fastest in over 40 years.
Now that the pandemic seems to be winding down, I am more concerned about how many republicans seems to support democracy. First, they wanted Pence to overturn the 2020 election, even though Trump lost, and lately they are saying we shoudl be on the side of Russia, a brutal dictatorship, instead of supporting the democracy in Ukraine. To not support democracy goes against long held American values and what the republican party is becoming is just un-American.
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