The main cause of inflation is a disruption in production because of the pandemic. We were too dependent on bringing essential medical supplies, electronics like semiconductors, and even masks from overseas. The reality is that Wall Street and our policymakers have, over the past fifty years, shipped our productive capacity offshore in search of cheap wages and higher profits.

No doubt the combined $5 trillion of federal spending had some role in inflation. But no one talks about the massive support of corporations and the Fed’s policies of buying mortgage-backed securities and corporate bonds. That triggered asset inflation, exemplified in the stock market. What the American Rescue Plan did is give some basic economic assistance to the poor, the working class, and the middle class so they could survive during the pandemic. It helped them pay rent and meet their basic expenses. They are not the cause of inflation, and we should vehemently reject the effort to blame them for the problem.