Plenty of blame for sharp inflation

We’re all frustrated by the rising prices at the gas pumps, and at the stores. And when things aren’t going how we like, we look for someone to blame. When it comes to inflation, the President typically gets most of the blame, rightly or wrongly. But there are many reasons we are seeing inflation at a 40 year high. Of course, the pandemic is a factor. That shut down most everything for a while, but the economy bounced back once we started getting those government checks, and companies got payroll protection money. Suddenly there was a surge in consumer spending. A big surge. With all that demand, there suddenly wasn’t enough supply. Add in labor shortages, shipping concerns and increased supply costs because of higher demand and it’s no wonder prices have gone up. But corporate America has to shoulder some of the blame for the high prices we’re facing. Even as the costs of production have hit record highs, corporate America isn’t feeling the pinch. Many big companies have raised prices more than needed to cover their increased costs, and their profits are rising as a result. Proctor and Gamble is bragging of being able to charge $10 for a tube of toothpaste. Many companies are sitting on big piles of cash, and buying back stock shares to reward investors. So if you’re upset about this round of inflation, remember there is plenty of blame to go around.