- The PANDEMIC - created problems within the supply chain
- Workers laid off affected the production of essential commodities like electronic chips, processed foods, baby foods,etc.
- The supply chain disruption caused congestion at the shipping ports and delayed the distribution of goods. Many ports are still not operating at the level of efficiency pre-pandemic.
- Ukraine-Russia war caused a shortage of petroleum products and a hike at the pump - this hike is transferred to consumers, and everything that needs to be shipped has experienced a price hike; Ukraine and Russian combined supply over 25% of global wheat need and a significant amount of sunflower oil among other agricultural products - the blockage at the Ukrainian ports by Russia is causing global shortage of foods and hence, the high price of many essential food items.
- Shortage of labor. Human movement was curtailed by the pandemic; there was also "the great resignation" - many quit their jobs since the pandemic broke and have not returned. Frontline workers (Drivers [school bus, truck, cab], Cashiers, Farm-workers, Manufacturing production staff, Nurses, etc.) are in short supply and this has affected the cost of production.
- The job market remains strong and wage has been going up because fewer workers are available to work. The implication is high purchasing power for fewer goods and services in short supply. The law of economics is clear when this is the case - inflation will skyrocket.
- China is the world manufacturing hub. The zero tolerance for COVID-19 in China and the recent short down of Shanghai and other important cities in the country, one of the largest manufacturing spaces in the world has further compounded supplies of essential goods globally.
- Access to excess cash. Many working class Americans saved a lot of money during the pandemic - many travel plans were scrapped, eating out reduced, buying petrol/diesel was reduced by as much as 80%, and many did not buy a change of clothing for more than a year, fewer social events that warrant substantial spending. On top of this, American governments (starting with Trump, and then Biden) gave three different stimuli and relief packages to families that did not need them in an attempt to stimulate the economy that did not need prompt, which has led to too many Americans with cash to purchase about everything, anything. With a short supply of goods and services, what happens is inflation. Some argued this has less impact on the current inflation state. The excessive stimulus money might have added to the inflation, however, it is just a secondary issue.
- The rest of the world is experiencing similar inflation - from Africa to Europe, the Americas, and Asia. The Red and Blue nations need not capitalize on or politicize this issue but bond together to help solve it. Because things may likely get better just before the November election and if all the RIGHT (RNC) are campaigning on is inflation, they may lose an election they were supposed to win based on historical antecedents.
I just came back from Nigeria . I traversed the length and breadth of the nation a bit in my three-week stay. Something is different about the country compared to when I visited last year.... The people are more desperate... Hunger has increased astronomically.... The gap between the haves and have-nots has further widened... You feel impunity in the air... You see police collecting bribes openly like we have not seen since the Shagari era in 1983... There are more law enforcement agents on the roads now, yet the crime rate has not abated... You see VIO , Road Safety, State Law enforcers, the Police, everywhere mounting illegal roadblocks... I heard things from those close to the seat of power about those who hold the reins of power, and I weep for Nigeria - it is beyond disheartening... Projects are being abandoned because a significant portion has been given as bribes to government officials like governors and ministers, including major monarchs - they all collect money for projects...
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