Global crises are fueling economic hardships in U.S.

Recent polls have indicated that the national economy is on the minds of many people, and most of those who feel unfavorably about it blame President Joe Biden. If there is a “blame” to be assigned, I respectfully suggest that “we the people” bear the great majority of that blame. Why? It’s Economics 101: supply and demand.

We all know that there are supply chain issues arising from the pandemic causing a back-up of goods at our receiving ports. The current COVID-19 crackdown in China has substantially lessened that country’s production of the goods the United States imports. The war in Ukraine and the western world’s freeze on purchasing Russian oil and natural gas has decreased the amount of crude oil available. This is the supply side of the problem.

As the world, in general, emerges from the pandemic, demand for that decreased amount of crude oil is increasing. In addition, the reduced level of consumer spending leads to increased savings levels, which, coupled with all of the stimulus money that has been pumped into consumers’ pockets, has increased demand for all consumer and consumable goods. Higher demand for a fixed or decreasing amount of goods results in higher prices. Economics 101.

One other point: Short of draconian, unilateral actions, no president has the power to effect any significant impact on the global economy, especially gas prices. We are just too connected to the rest of the world.

Joseph Bucci

Albany