Inflation: Causes, Perceptions, Concerns, Strategies, Actions!

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Inflation: Causes, Perceptions, Concerns, Strategies, Actions!

The reality of the economic situation is that we either experience inflation, recession, or something in between! In recent memory, over time, it’s usually a matter of degree, because, it seems, regardless of what the so-called, expert, claim, prices – have gone up! In the past few months, we have been experiencing what appears to be an inflationary period in almost every sphere of life, with price hikes! Prices of houses, cars. Building materials, groceries, etc., are all, more expensive! However, it is important to remember and consider that we have just gone through one of (if not, the worst) pandemics in this country’s history, including: quarantines, business closures, supply-chain challenges/ Disruption etc. , and, no one knows, what will happen in the future! Is this going to be a long-term, or short-term, challenge/obstacles? With this in mind, this article will attempt to consider, review, examine and discuss – in short, the possible causes, perceptions, concerns, policies and actions – further.

1. Reasons: Simply put, inflation is an extended period of rising prices across the economic-spectrum! Exactly what causes this varies, but, as most of us remember, there have been many periods of inflation, as well as other periods of stable, economic conditions/spending/prices! How much is the pandemic related to what we’re experiencing now, and what other factors might there be? Because, concerns, unemployment, business closings/challenges, government subsidies, federal deficits, and, historically – low, interest rates, affect many components of our economy!

2. Perception: The perceptions of our citizens have a significant impact on our economy. When consumer confidence is high, people spend more freely, and, across – the – board! When, not so, the overall, financial situation, slow – down!

3. Anxiety: Related part, of inflationary situation, our fear, loss of land, ever-increasing, cost of living! Huge rise in house purchase price, how long will people be willing to pay? How long will interest rates remain at historic lows? What will happen to the overall economy when food, gasoline, and many other things become more expensive, and ultimately, salaries/wages, if they continue at that rate?

4. Policies: This nation, politically, is a divided country! We have never seen the extent of partisan politics, we are seeing it today! How much should the government subsidize, what should be the priorities/objectives and for how long? How much is too much, versus too little? Perhaps, the biggest, potential difference may be the inability of our elected officials to look at the big picture, in a relevant, sustainable manner, as opposed to taking the path of least resistance and using a populist approach. ?

5. action: Finally what – results and outcomes, in inflationary times, can depend on policies and actions, which, in a leadership position, follow up and take!

Wake up, America, and recognize the potential consequences of inflation, both in the short and long run! Will you demand, take responsible action or accept, same-old, same-old, excuses etc.

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