Inflation is defined as the upward movement of the price of goods in any given economy over time, according to the U.S. Department of Labor. In America, the current rate of inflation is 3.09 percent, down from a high of 9.06 in June of 2022, but up from a low of just 0.12 percent in May of 2020, according to ycharts.com. While these numbers seem meaningless, they define the struggle of a generation, as with inflation on the rise products become increasingly more difficult to purchase.
The prices of various goods going up does not fare well for those in poor states of economic stability. This is because if the price of goods continues to rise, anyone with a sufficiently low and stable income will soon be surpassed by the rising cost of basic goods. A person in 2024 who is paid 15 dollars an hour will make 31,200, not accounting for taxes or other necessitated expenditures. Only counting the price of groceries, that number falls to 18,672.8 dollars, almost half of the initial 31,200, according to the U.S. Department of Labor.
The policy and legislation behind inflation produce an interesting look into the politics of this phenomenon. Between Democrats and Republicans, the issue averages at 70 percent important. This is higher than any other issue by far including affordability of healthcare (55 percent), violent crime (54 percent), and gun violence (51 percent), according to pewresearch.org. The importance placed upon inflation cannot be overstated, as its effects spread from the dollar to the senate.
With the current economic climate, inflation will continue to spread and prosper until a solution is presented. By implementing practices like reserve requirements, raising the discount rate, and setting price controls, the effects of inflation will lessen over time, according to investopedia.com. This would bring the prices of goods back to relatively normal levels, enriching the economy once again.
Inflation is one of the biggest economic issues presented in our lifetime. While there are measures to combat its effects, action needs to take place to thwart its negative outcomes. However, the public as well as the government view this issue as a huge threat, making the reversal of inflation only a matter of time.
