Local Blame for a Global Problem

Or, how to torpedo a presidency

Inflation in the U.S. hit 9.1 % this week—that’s the highest it’s been since 1980. Although gas prices have been falling steadily for the last 26 days (not that you would know that if your only source of information is the mainstream media) they are still much higher than they usually are.

The current spike in inflation originated in the drastic contraction of the economy that began when the planet essentially shut down for a year and a half. Twenty-two million jobs were lost and companies postponed replenishing stock. A severe recession followed but it was cut short by a combination of massive infusions of government aid and the hugely successful roll-out of the COVID vaccine. Together these increased demand for goods and services so quickly that businesses couldn’t keep up. Global supply chains ground to a halt. High prices were the result of the combination of increased demand and supply shortages.

Gas prices are also elevated because of increased demand (remember, practically nobody was driving in 2020 and for much of 2021) but also in large part because of Putin’s war of aggression against Ukraine.

Part of what’s driving this problem is that oil corporations haven’t gotten back to their usual levels of production since the massive slow-down created by the pandemic. Some of this is structural but some of it is purposeful price gouging (a barrel of oil costs less now than it did in 2011 but a gallon of gas is much more expensive): Keeping prices artificially high helps big oil recoup profits lost during the down-turn and shores them up against anticipated future losses due to the increasing market share of electric vehicles.

Gas prices here, although high compared to the last few years, are lower than most other places in the world. On a list of 168 countries, the U.S. has the 64th least expensive gas. Almost every country with lower prices is either a gas-producing nation or a poor one. As a rich country with comparatively low gas prices America is something of an anomaly.

So, neither inflation nor high gas prices is a uniquely American problem—every country on the planet is affected to one degree or another. Inflation rates in the UK and most countries in the Euro Zone are similar to those here. In many places the situation is much worse than it is here—inflation in Turkey, for example, is over 70 percent!

When Americans are asked what the most important issue facing them is, the answer is almost always “The Economy.” Since the federal minimum wage has been frozen at $7.25 since 2009 (!), and we do not have universal health insurance or child care, and we do not provide free college tuition, among many other deficiencies, this makes sense. But failing to educate Americans about the realities of inflation and failing to provide them with the kinds of government programs that could protect them and their families from the vagaries of economic downturns makes it difficult for them to focus on many of the other serious—and potentially existential—issues currently facing us. It’s hard to worry about egregious SCOTUS decisions or the rise of fascism in America if you’re consumed by trying to figure out how to feed your family because the purchasing power of your salary has been significantly reduced.

Republicans know that the best defense against inflation and high gas prices is a living wage and all of the other benefits that most other developed nations, besides the United States, offer their citizens. Only the Democratic party wants to provide working Americans with the kinds of economic security that would fortify them against temporary economic hardship and offer them long-term security. By pretending that President Biden is responsible for inflation and high gas prices the implication is that he could do something to alleviate American’s suffering but simply prefers not to. This not only undermines his and his administration’s credibility but it also overshadows their many real accomplishments.

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This has nothing to do with the matter at hand but a video was recently released of what happened (and what didn’t happen) in the hallways of Robb Elementary School in Uvalde, Texas where 19 children between the ages of 9 and 11 and two teachers were slaughtered. There is no violence or carnage depicted in the video but it is a graphic depiction of cowardice, stupidity, and incompetence.

I never want to hear the expression “good guy with a gun” again as long as I live.

Here is the video:

https://www.statesman.com/videos/news/2022/07/12/uvalde-school-shooting-video-police-robb-elementary-shooter/10029441002/

And here is my take on the gun situation: