Inflation and COVID-19 in the United States

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Inflation and COVID-19 in the United States

Some background knowledge:

https://www.whitehouse.gov/cea/written-materials/2021/04/12/pandemic-prices-assessing-inflation-in-the-months-and-years-ahead/

https://tradingeconomics.com/united-states/inflation-cpi

https://www.economist.com/podcasts/2020/02/11/supply-strain-how-will-the-coronavirus-affect-global-supply-chains?utm_medium=cpc.adword.pd&utm_source=google&ppccampaignID=18798097116&ppcadID=&utm_campaign=a.22brand_pmax&utm_content=conversion.direct-response.anonymous&gclid=Cj0KCQiA37KbBhDgARIsAIzce14Vw5Ii7_Hvd8PKHV8aDwbyPVyl8ELFmjjYFFv5r8YlFNN1Z7Bpy24aAnPbEALw_wcB&gclsrc=aw.ds

As we all know, inflation has been a large topic of discussion in the recent years around America. Rising gas prices, higher rates of sale for goods, and more and more shortages, America can’t catch a break. While inflation right now is at a high, this isn’t the first time inflation in America has fluctuated this much. This website takes you through the ups and downs of inflation over the past hundred years in America: https://www.thebalancemoney.com/u-s-inflation-rate-history-by-year-and-forecast-3306093

Interestingly enough, by looking at this chart, we see that what we are going through right now is nothing we haven’t seen before. COVID-19 disrupted so much of our lives back in 2020, and even now as we are about to enter 2023 it still continues to affect us in the form of inflation. While the virus is slowly turning into an endemic and is dying away, prices continue to skyrocket, sending people on last ditch efforts just to afford basic things such as groceries and gas. Even now, there is no way of knowing when inflation will begin to decrease, bringing the United States back to normal. 

respond to the questions

1. Covid-19 changed everyones lives in ways that no one really imagined. As to be expected, when something as major as a pandemic disrupts living, it’s going to affect every aspect of our lives, including price points. Did Americans see any of the sudden spike of inflation coming from the pandemic? Do you think that there was anything pointing to this conclusion that maybe we could have seen coming? How much of the government lockdown contributed to the inflation?

2. Did the government respond too harshly to Covid-19? If America’s situation had looked more like Sweden’s response, for example, could we have kept the sudden jump of inflation to a minimum? Or on the other end of the spectrum, if America was in a situation such as France would the inflation have gotten worse with the prolonged lockdown?