The president and politicians aren’t the primary entities to blame for economic issues; in fact, corporations and consumers are!
Perhaps you do not know this, or perhaps you do, either way, I would like to share this information with you. Now, yes, the government does, in a sense, have significant control of costs and the economy, one such example being that without the government creating value in the form of currency, the economy as we know it would not exist. Furthermore, the government, via the Federal Reserve System (also known as “The Fed”), can stimulate the economy through decreasing interest rates, lowering or abolishing taxes, or issuing stimulus checks, to name a few methods. Yet, if need be, the Fed can slow down a strong economy by raising interest rates, increasing or implementing new taxes, or creating new regulations. Despite all of this, the government has less control than one might think, and I have deduced this through logic and reasoning.
We shall begin with the price of gasoline, a thing various politicians have credited themselves for lowering and their opponents for raising. Now, who (or what) sets the price of gas? The price of gas goes almost entirely hand in hand with the price of oil, which in and of itself is controlled by supply and demand. We, the consumers, have control over demand, while supply is subject to various things that may influence it. Another example is the phenomena of “shrinkflation,” seen primarily in the price to goods ratio of a bag of chips.
Perhaps the blame is to be put on consumers. Yes, with their ever-growing materialism that spreads the inflation caused by it, the blame is surely on them. Our act of exponentially increasing the demand is inarguably the cause. Isn’t it? Well, an interesting point to note is the actual definition of inflation. As defined by Investopedia, is “a gradual loss of purchasing power that is reflected in a broad rise in prices for goods and services over time.” In simple terms, it is the rate at which prices are rising. Who makes the prices rise? After government rules and regulations are applied, the companies do. Now, many things may cause a company to raise their prices, including but in noway limited to the following: supply shortages or issues, increases in production costs, and raises in minimum wage. Yet still some companies may raise their prices unscrupulously or for no direct reason at all. We, the consumers, need not put up with any prices we disagree with simply by not buying such products or supporting such companies– a thing far easier said than done. Despite the established truth, many of us look at the price, mutter a complaint, and buy the product anyway. So while the companies may have some egg on their faces, we as consumers have an entire dozen slathered on ours. We have the complete and total freedom of where our money goes (except during tax season), but many of us choose not to exercise it or to exercise it in ways we hate.
Many politicians try to credit themselves for good economic happenings or promise to bring them. But as you have see, producers and consumers have the greater dictation of prices and things, with us consumers having the ultimate control through the level of demand we put out.
Dante Patch
Life Scout
Hamilton
