The recent editorial cartoon by Michael Ramirez showing Biden’s “economy car” blowing apart in midair should really show that the world economy is falling apart because inflation and high gas prices are global events.
Even a recent issue of the Review Journal included an article “G-20 Treasury Officials Talk Inflation.” Yet every day we get news reports and misleading cartoons that make it seem like these price hikes are something only the United States is going through – and therefore the government must be to blame.
While this isn’t much of a consolation to the consumer, these global issues are due to increased demand as the world has emerged from the pandemic. The range of goods tries to keep up. The war in Ukraine has made the situation much worse. Businesses are also raising prices to make up for what they lost during the pandemic. This has resulted in the oil companies making huge profits. In fact, what little we have invested in energy funds is up more than 50 percent last year and more than 40 percent this year.
So let’s put this world event into perspective: inflation is 9.4 percent in the UK, 9.6 percent on average in the European Union and 8.1 percent in Canada. In the US it is 9.1 percent. And petrol prices in the UK are $8.50 per gallon, compared to $6.713 in Germany, $9.06 in Norway, $5.89 in Canada and $4.61 in the United States (as of July 25) .