Inflation

While it’s painful, the causes are corporate and inherent to America. Acknowledging the real pain of inflation demands exploring the real causes. If one looks beyond the local news outlets owned by hedge funds, you will find reliable sources for what has really caused, for example, the price of hamburger to increase over 20 percent at the grocery store.

First are the failures of capitalism’s system of “Supply and Demand.” Supply shrunk at production and transportation levels from decades of corporations moving manufacturing overseas and America’s growing dependence on other nations for our supply. Now demand has surged thanks to declining pandemic numbers coupled with increased available household cash for spending. Hence, demand is outstripping supply. And many corporate giants are taking advantage of this consumer dilemma to increase large stakeholder profits at record levels.

While it hurts our individual pocketbooks, local mom and pop businesses and family farms are run out of business as corporate supply-chain monopolies control and eliminate competitive pricing for raw goods. “Bigger” is not always better.

Big Business would do well to treat the buying public with as much care and concern as it provides to corporate stockholders. Capitalism has benefitted our country, but unbridled capitalism is dangerous. How do we justify the extreme profits made by a few corporate giants during the pandemic while many people and families took a financial beating? Are we really a free and competitive society? Price controls scare businesspeople, but excessive profits and greed may bring them on.

Secondly, labor shortages in America brought on by increased early retirements, low birth rates, and decreased immigration (see Time Magazine, March 14, 21, 2022) all contribute to inflation. America simply does not have enough workers to make the products and provide the services we presently demand. There are fewer unemployed than available jobs. 

Too many Republicans blame Biden and Democratic policies for the economic downturn and inflation. Forgotten are the Bushes’ and Trump administration fiascos from which we were rescued by Democrats Clinton, Obama and Biden. Big Business, usually Republican in thought and practice, brought on and now expand most of the factors causing inflation.

So when your emotions boil over at the cash register these days, please calm down and consider the real causes of inflation, demographic change and unbridled corporate greed.

JAMES R. BROUSSARD

NEW IBERIA