Economics

They claim supply chain challenges, growing demand, production costs, and large swathes of relief funding all have a part, although politicians tends to blame the supply chain or the $1.9 trillion American Rescue Plan Act of 2021 as the main reasons. A more apolitical perspective would say that everyone has a role to play in […]

Whip Inflation Now (WIN) was an attempt in 1974 to spark a grassroots movement in the United States to combat inflation by encouraging personal savings and disciplined spending habits in conjunction with public measures advocated by President Gerald Ford. Later, the effort was dubbed “one of the worst government public relations mistakes ever.” People who […]

Gallup released results on Jan. 26 showing that the vast majority of Americans expect increasing inflation to last at least six months. All indications point to the general population getting it mostly right. “Inflation will continue to climb and remain elevated for the next few months,” said David Frederick, director of client success and advisory […]

Tariff increases did not lead to inflation, and removing them would put domestic supply chains at risk. Tariffs cause inflation or deflation. Tariffs are commonly thought to be inflationary, while free trade is thought to be deflationary, a position that this article contradicts. While protectionism has often caused inflation in poorer economies, the United States’ […]

The highest year-over-year inflation rate recorded since the formation of the United States in 1776 was 29.78 percent in 1778. In the years since the CPI was introduced, the greatest inflation rate recorded was 19.66 percent in 1917. When was the highest point in US inflation? Between 1914 and 2022, the United States’ inflation rate […]

Unexpected inflation hurts lenders since the money they are paid back has less purchasing power than the money they lent out. Unexpected inflation benefits borrowers since the money they repay is worth less than the money they borrowed. Is inflation beneficial to banks or detrimental? Inflation is defined as an increase in the price of […]

Inflation, or the constant rise in price levels, is one of the key threats of a budget deficit. A budget deficit in the United States can prompt the Federal Reserve to pump more money into the economy, feeding inflation. When the fiscal deficit grows, what happens? A cyclical deficit is one that arises as a […]

Core inflation refers to the change in the cost of goods and services that excludes the food and energy sectors. These items are not included in our estimate of inflation since their prices are significantly more unpredictable. The consumer price index (CPI), which is a measure of prices for goods and services, is most commonly […]