Worries Over the Economy: Coronavirus or Inflation?

Concerns over hot economic growth and inflation hit the American stock market Monday. There’s debate over whether it’s a reaction to a COVID-19 resurgence or a backlash to inflation.


Apparent unease over a small resurgence in COVID-19 infections resulted in stocks taking a tumble Monday, with the Dow losing more than 700 points.


reporting from the left side of the aisle




Author’s Take

There are two reasons for cause for concern over the economy, and which one you believe depends on which camp you’re in: The media and Democrats wants you to believe it’s all about a resurgence in the coronavirus and hesitancy among the economic elite in its wake. Meanwhile conservatives think additional government spending has introduced too much money into the economy, particularly with respect to the labor market and the demand for workers.

The reality is probably somewhere in the middle, and global vaccination rates might have more to do with it than people realize: While the United States was one of just a handful of countries to zoom ahead in its vaccination program, most other nations did not have that head start. Perhaps the uneven vaccination rates in countries the United States relies on for trade have begun to act as a small drag on the American economy?

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© Dallas Gerber, 2021