Costs are up. Inflation is surging. Who’s to blame?

“Biden-era U.S. inflation soars to highest level in 40 years, costing every American more,” reads the article at YallPolitics.com. “Since President Joe Biden (D) took office, consumer prices and inflation have steadily increased, rising to a 40-year high in March of 2022 and costing every American more money to live.”

“Inflation is still surging and some Democrats see one culprit: Greedy companies” reads the article at NPR.org. “Many people (are) asking who or what is to blame for soaring prices. For some progressives, one clear culprit stands out: corporations trying to fatten their bottom lines.”

Thus saith those whose works tend to align with political interests.

Then there are the more centrist and business-savvy sources such as the Wall Street Journal and Forbes.

“Pandemic-related forces, Russia’s invasion of Ukraine have pushed up inflation to highest level in four decades” reads the Wall Street Journal Article.

“Elevated inflation has been driven by supply chain disruptions and pent-up consumer demand for goods as the Covid-19 pandemic wanes,” reads the Forbes article.

Inflation generally comes from too much demand in the face of too little supply. In the United States, the responsibility for controlling inflation lies with the Federal Reserve. It has two key duties – controlling inflation and maximizing employment. The Fed attempts to control inflation through monetary policy by which it can affect interest rates, the supply and velocity of money, and liquidity.

Fiscal policy, i.e., government spending, can affect demand. Supply chain hiccups and scarcity can affect supply. In this instance we have both plus two. Federal spending skyrocketed under President Trump and continued under President Biden. The COVID-19 pandemic decimated production and interrupted supply chains worldwide causing scarcity that persists in some areas. Plus the war in Ukraine disrupted oil supplies pushing prices to new highs and, now, bird flu is pushing poultry prices skyward.

“Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hit man,” said Ronald Reagan. That is particularly true for low-income individuals.

Hello Mississippi, the state with the lowest annual incomes and lowest average annual wages, where high gas prices and high food prices can be devastating.

“The Fed missed inflation,” read a Wall Street Journal headline. The paper also noted that “Fed officials took their time” before realizing that inflation was getting out of hand and would require a sustained monetary response.

Oh, for those playing the blame game it might be of interest to know who appointed the Fed chairman and most of the current governors who control Fed policy. There are seven governor seats but three are vacant. Three of the four active governors, including Chairman Jerome Powell, were appointed by Trump.

“The rich rule over the poor, and the borrower is servant to the lender” – Proverbs 22:7.

Crawford is a syndicated columnist from Jackson.