Understanding Inflation

Understanding Inflation

The Impact of Tariffs, Supply Chain Disruptions, and Covid-19

Inflation is a concern for most Americans, and a focal point in this year’s presidential election. To better understand why inflation is high we have to know that tariffs, supply chain distribution, and covid-19 are major reasons for high prices.

Tariffs: are taxes on imported goods, they are often implemented to protect domestic industries from foreign competition. However, they come with unintended consequences. When tariffs are imposed, the cost of importing goods increases, which can lead to higher prices for consumers. These costs are often passed down to consumers in the form of higher prices. While tariffs aim to support local businesses, they can inadvertently contribute to inflation.

Supply Chain Disruptions: The Ripple Effect, A well-functioning supply chain is crucial for maintaining stable prices. Disruptions in the supply chain, such as delays in production, transportation issues, or shortage of raw materials, can significantly impact the cost of goods. Supply chain disruptions create a ripple effect throughout the economy contributing to inflationary pressures.

Covid-19 pandemic has had a profound impact on economies worldwide, accelerating inflation in several ways. The pandemic caused a sharp decline in economic activity, leading to massive government spending to support businesses and individuals. Although these adjustments by our government were necessary during the height of the pandemic, helping our economy (by government) contributed to higher demand in a constrained environment.

Finally, all three factors (tariffs, supply chain issues, and Covid-19) have played  a major role in the high inflation that this country is experiencing. To be clear, the tariff factor was caused by Trump and he has stated that if he’s elected, he will impose more tariffs on China which will have disastrous effects on the economy and even higher prices for consumers. I hope that this narrative gives us all a better view on why inflation is the way it is,we can’t allow Trump to get near the Oval office, consumers will pay the price if he is reelected……Please VOTE!

Marvin Dixon/Founder

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