Economic Analytical Paper
ARTICLE:
The article I choose to write about is written by Paul Hannon in London, Ryan Dube in Lima, and Stella Yifan Xie in Hong Kong, “Inflation Surges Worldwide as Covid-19 Lockdowns End and Supply Chains Can’t Cope,” in the Wall Street Journal.
SUMMARY:
The first key topic is inflation with the second key topic as humanity. As it is humanity that creates and makes economics, either macro or micro, and since humanity creates and makes economics, it is important to ensure the livelihoods of humanity are healthy and livable. Much of what is happening today can be avoided, but, as it appears this is the desire of the wealthy, ridiculously wealthy that is. Their wealth has caused them to be short-sighted and disregard humanity in their livelihoods, which are the essence of economics.
Supply chains are the struggling issue in this article. I believe supply chains should have been able to attend their businesses considering how many industries were consider essential. There are many questions I pose, such as, why weren’t the most necessary supply chains deemed essential, considering all short-run and long-run projections within economies? Even though each country deems themselves the best country in the world, national pride is not a bad thing, yet we all require one another to maintain our own countries. Being interdependent is positive unless governments, entities or industries decide otherwise, which is what we are seeing, experiencing, and fighting for or against. This is not a legitimate economic inflationary problem, this is a power struggle with the governments, industries, and entities, leaving humanity in the dark, until something happens that humanity can’t avoid or when you read articles like this one. To me all of this could have been avoided.
Let’s discuss the wages and costs of living. Utilizing workers who’ve been underutilized as a method of avoiding wage rises is not as good as it appears to be. My questions are, are the positions in need of a wage evaluation? Are the workers being underpaid? Many of USA’s entities moved across seas for cheaper labor because in USA we demand fair labor wages for working in specialized or underutilized areas of employment. Higher wages pose higher costs and lower revenues for the entities and industries. Causing prices to increase for all goods and services. As for the individuals in other countries working for the entities that moved across seas; should they not have similar rights for fair labor wages? Consider the fact that laborers are working for an entity from USA; should our laws apply? If an entity is created in USA, then our laws and labor standards should apply to every employee or contractor. That is what levels the playing field, not eliminating the rights of humanity, decreasing wages, and bringing global chaos to society so everyone can be poor, then claiming to rebuild society when they are making a mockery of it. Inflation, written in this article is not my opinion as to what inflation truly is. This form of inflation is man-made and purposely performed against humanity. To me, the bottom line is humanity. The wealthy became wealthy from the people, they should in turn ensure the livelihoods of humanity are livable, not simply staying afloat!
ANALYSIS:
With inflation rates increasing, people are making essential choices that they shouldn’t be. Such as not eating properly, working outside of an area commutable, not being able to provide for their families, not sleeping due to worry or stress, and not being able to have a livelihood. As the inflation rises, humanity loses their livelihood. From the smallest of items to the largest, all are essential. Most items essential are out of reach due to inflation rates.
This is not the fault of the people, but the fault of those governing the industries and entities, and the governments themselves. We the People can resolve this, but those in supposed positions of imaginary power have deemed this nonessential and unnecessary. Take a look at our gas prices, our food prices, and everyday small costs of running your home. The inflation is wrong, and overwhelming for many. To me this is the wealthy’s way of doing things, thus they are the cause and effect of the inflation, which is a shame on the wealthy, not the people.
The Graph Below shows the Inflation Rates from 2010 to 2021 for Chile, Brazil, Europe, and USA.
DATA: Europe is difficult from 2001 to 2010 since countries have become a Union, rather than individual countries with individual money.
BRAZIL: https://tradingeconomics.com/brazil/interest-rate
USA: https://fred.stlouisfed.org/series/INTDSRUSM193N
CHILE: https://tradingeconomics.com/chile/interest-rate
EUROPE: https://www.macrotrends.net/countries/EUU/european-union/inflation-rate-cpi
