Inflation Rises Around The World, As The Supply Of Memes About It Reaches A Record High

A report from the U.S. government’s Bureau of Labor Statistics showed that the Consumer Price Index (CPI) increased 8.5 percent between March 2021 and March 2022, meaning that the United States is facing a level of inflation not seen since the 1980s. The Consumer Price Index is calculated by looking at the price of a series of different products that consumers often buy, including food and gas, and calculating how much those prices have increased on average.

Remember, the narrative for #Inflation sill keep changing. The real #inflation is far higher, checkout @truflation #Bidenflation #CPI pic.twitter.com/5qrJJHp1LM

— The Market State (@themarketstate) April 12, 2022

The White House has blamed Vladimir Putin and Russia’s war in Ukraine for inflation, a charge which is not without merit since economists estimate that a lot of the inflation increase since February is because of rising gas prices, for which sanctions and the war are responsible.

"We need to do more to reduce costs for the American people."White House Press Secretary Jen Psaki says the White House expects the Consumer Price Index report on inflation for March “to be extraordinarily elevated due to Putin’s price hike.” pic.twitter.com/MsImm8189U

— CBS News (@CBSNews) April 11, 2022

Ever since Biden took office, the price of my beloved Crocs have been skyrocketing. Now, they’re so expensive, I don’t even want to power walk in the mall. Yes, what’s going on in Ukraine is bad, but Americans are suffering too under the heel of expensive footwear. #inflation pic.twitter.com/Fwjz9H076A

— Guy Who Does His Own Research (@DYO_Research) April 12, 2022

But rising inflation predated the war and even Biden's presidency. Inflation started to rise significantly in 2020 during the coronavirus pandemic and lockdowns. The Federal Reserve significantly increased the amount of money in circulation (a situation memorably memed in Money Printer Go Brr) because they wanted to prop up a spiraling economy. The Fed virtually printed a bunch of cash and loaned it to banks so that, even though preexisting money stopped circulating in the economy because nobody was buying anything, the banks could loan out the new money and keep the lights on that way. Other central banks around the world made similar decisions.

Taking it back even further, the Federal Reserve has carried on a controversial policy called “quantitative easing” since 2008, in which it made the decision to print extra money in order to prop up the economy in a time of crisis and then never really stopped doing that. Essentially, the deal the Fed made over the last 15 years was to accept some increase in inflation and in return keep a lid on rising unemployment (because if banks can loan money easily, businesses are more likely to invest and hire people).

Lotta headlines today about "inflation at 40-year high." We have a nice test of whether the media is symmetrically interested in good news because in the next month or so, it's likely that unemployment will hit a 50-year low. Will this attract as many breathless headlines?

— Justin Wolfers (@JustinWolfers) April 12, 2022

Now the Federal Reserve has reversed course, increasing interest rates on the money banks borrow from it by 0.25 percent, meaning that the virtual money-printing will slow down — but some think it’s too little and too late.

The FED trying to fight inflation. pic.twitter.com/FOy74tIlTC

— Genevieve Roch-Decter, CFA (@GRDecter) April 12, 2022

Critics of Joe Biden and his administration have blamed the President for rising inflation, producing a variety of memes arguing that point. In particular, some memers online seemed upset at what they saw as deceptive messaging by the Biden Administration about the causes and severity of inflation.

Remember, the narrative for #Inflation sill keep changing. The real #inflation is far higher, checkout @truflation #Bidenflation #CPI pic.twitter.com/5qrJJHp1LM

— The Market State (@themarketstate) April 12, 2022

#Bidenflation #inflation #BidenWorstPresidentEver Look for the media today to….. pic.twitter.com/xgQd0PzlZZ

— Jeff2001 (@JeffreyL2137) April 12, 2022

"Jimmy, See the Middle Class over there? Forty-four years from now I'm going to crush them beyond anything your administration could even fathom. Not a joke!"#BidenInflation #Inflation #FJB pic.twitter.com/FPGtjd2QoX

— Brett R. Smith (@BrettRSmith76) April 12, 2022

Some on the left suggested that the cause of inflation may be the greedy actions of corporations and investors who saw record profits during the pandemic in large part because of how easy it was to borrow money from the banks that were glad to lend out all the new money the Fed printed.

Meat prices increased by double digits.Tyson’s CEO says they’re asking customers to “pay for inflation.”Meanwhile, Tyson’s posted $1 billion in profits last quarter -- a 48% increase from the first quarter of 2021.Don't be fooled. This is about corporate greed. It always is.

— Robert Reich (@RBReich) April 12, 2022

Literally everyone with an econ 101 understanding predicted this inflation in early 2020 when the politicians and the Fed put it into motion with their asinine policies.Both parties are responsible. Do not let them lie to you. #paymoregetless

— Hannah Cox (@HannahDCox) April 12, 2022

But the inflation problem is not just an American one. In a global economy in which the dollar is the most influential currency, what happens in one economy impacts another. The countries of Sri Lanka and Peru have seen significant turmoil in the past few weeks, in part because of rising inflation that impoverished their citizens. Prices in Europe and Asia have also risen significantly, and alarm bells are ringing not just in Washington and Wall Street, but essentially everywhere.

Let India not become Sri Lanka #inflation pic.twitter.com/lqO1bUzS0Z

— Indian Doctor (@doctor4india) April 5, 2022

Headline inflation to the euro area accelerated to 7.5% in March from a revised 5.9% in February, calling into question the European Central Bank's inflation projection of 5.1% for the year.#Economy #Investment pic.twitter.com/wvO77LMoFD

— Arth Ben (@ArthurBenta) April 5, 2022

First Sri Lanka, & now mass protests+curfews in Peru. Dominoes have begun to fall due to inflation & shortagesWait for countries like Egypt to follow, but also look out for Europe (German supermarkets increased prices by 50% & are already rationing cooking oil in some cities)

— Alexei Arora (@AlexeiArora) April 6, 2022

Peru 🇵🇪 Mass protests against inflation and the cost of living crisis. pic.twitter.com/0Z4ErOHCIt

— James Melville (@JamesMelville) April 11, 2022

As prices continue to rise, policymakers will have to figure out ways to address the problem — and people around the world will have to navigate an increasingly cruel and difficult economy.