Republican office-seekers have been driving the narrative that the U.S. inflation rate is dystopian on the one hand and the fault of President Biden and his COVID relief aid on the other hand. The mainstream media, eager to add drama to critical midterm elections, has aided this narrative. Despite having higher inflation rates than the U.S., other countries (Mexico, 8.7; Italy, 8.9; Spain, 8.9; Germany, 10; United Kingdom, 10.1; Russia, 13.7; Netherlands, 14.5; Argentina, 83; and Turkey, 83.45), seem to handle inflation better than the U.S. While the media stress the fact that the U.S. has not known inflation this high for forty years, Americans may view 8.3 percent inflation as devastating because of the lack of social safety nets. Of course, the 8.2 percent annualized inflation rate stretches many families to the breaking point.
Although U.S. unemployment is as low as it has been for two decades, most U.S. workers have not had an actual wage increase in 40 years. Except for the highest-paid workers, wages have remained the same. At the same time, health care costs, sometimes a part of workers’ compensation packages, have been increasing, usually more than inflation. Many Americans, some earning as much as $90,000 a year, say they can not afford the health care they need. Also, the Federal Reserve reported that 32 percent of Americans could not afford a $400 cash emergency. While 32 percent is a new low—it has been as high as 50 percent—it is another indicator of how close to financial hardship many Americans are.
Inflation in countries with higher inflation rates (listed above) than the U.S. also has more robust safety nets. The countries listed above have government health systems. And most have other government safety nets to help shield their citizens from inflation. Nonetheless, high inflation is painful, especially for those with few resources. But government programs and safety nets can help. Government programs and wage increases commensurate with productivity increases could have lessened the adverse impact of 8.2 percent inflation.
Although U.S. unemployment is as low as it has been for two decades, most U.S. workers have not had an actual wage increase in 40 years. Except for the highest-paid workers, wages have remained the same. At the same time, health care costs, sometimes a part of workers’ compensation packages, have been increasing, usually more than inflation. Many Americans, some earning as much as $90,000 a year, say they can not afford the health care they need. Also, the Federal Reserve reported that 32 percent of Americans could not afford a $400 cash emergency. While 32 percent is a new low—it has been as high as 50 percent—it is another indicator of how close to financial hardship many Americans are.
Inflation in countries with higher inflation rates (listed above) than the U.S. also has more robust safety nets. The countries listed above have government health systems. And most have other government safety nets to help shield their citizens from inflation. Nonetheless, high inflation is painful, especially for those with few resources. But government programs and safety nets can help. Government programs and wage increases commensurate with productivity increases could have lessened the adverse impact of 8.2 percent inflation.
