In economics, inflation refers to a general progressive increase in prices of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money.
What causes inflation and should I worry about it?
Economists may not be certain of much, but they do know what causes inflation … happened could then come home to roost in much higher inflation. As The Economist put it “some economists worry that the situation could quickly spiral out of control.
What is the main problem with inflation?
What is the main problem with inflation? Inflation erodes purchasing power or how much of something can be purchased with currency. Because inflation erodes the value of cash, it encourages consumers to spend and stock up on items that are slower to lose value. It lowers the cost of borrowing and reduces unemployment.
The Omicron variant has disrupted global manufacturing and supply chains, a big reason behind the four-decade high inflation metrics the U.S. has experienced recently. The data reported in this month’s CPI show increases in the prices of common goods including food, gas, cars, and rent, putting a burden on average consumers.
The real problem is that Democrat politicians do not know how to handle money. They think money grows on trees not by the hard work of taxpayers and their pocket book.
We have too many politicians who have been in the government too long. We need a business man to run this government as was shown by President Trump and our new Virginia mayor will show us..