At the beginning of October I returned from a long trip to Europe. Inflation there is much worse than our current 8.2%. Our gasoline prices are similarly modest in comparison, even moreso now. Inflation is currently 14.5% in the Netherlands, 13.7% in Russia, 10.1% in the UK, 10% in Germany, 8.9% in Spain and Italy, and 8.7% in Mexico.
Inflation is a worldwide phenomenon due to supply chain disruptions, record business profiteering and sector pricing where only a few businesses compete. Record business profits account for over 50% of price increases. Businesses raise prices because they can, when they dominate markets and where there is little competition.
Oil prices rose because OPEC+, a cartel, cut production by 2 million barrels a day, causing gasoline prices to go back up. This was a direct attempt by Saudi Arabia’s MBS and Putin to influence the U.S. elections and hurt the Democrats.
Unemployment is at a 50-year low and wage increases have little bearing on rising prices when there are record profits. There are two job openings for every job seeker, yet employers resist raising wages in any meaningful way. Employers that pay a living wage are having no problem recruiting.
What are the Republicans proposing to cut inflation? Nothing. The Republicans offer little more than more culture warfare and certainly don’t want to talk about the consequences of their proposals. But it seems they will try to cut Social Security and Medicare. Ask Ron Johnson and Rick Scott.
Bob Heister
Fox Chapel