The Prospect’s reporting has established that the prime driver of today’s inflation was the supply chain shock, the 40-year folly of deregulating the several links in the chain, and the excessive offshoring to China combined with COVID disruptions. The culprit was not anti-recession stimulus.
But reshoring production and restoring a coherent logistics system will not be finished this year. In the meantime, inflation is all too real, compounded by Putin’s Ukraine War.
Price increases hurt consumers and workers. They are never good for the government in power.
Read Full Article »