The Truth about Inflation

We’ve all been hearing how the economy is the most critical issue of the mid-terms. It is an important problem that needs to be addressed. However, inflation is not what we think it is. Inflation is at a 40-year high but so are corporate profits.

The truth is that inflation is a very real thing, and it is hitting us all in the pocketbook. The cost of living is rising faster than wages, and this is making it difficult for families to make ends meet.

For much of the year, we have watched the Federal Reserve raise interest rates to counter the inflation caused by the pandemic supply chain issues. It is the Federal Reserve’s job to prevent prices from spiraling out of control, but the tools at their disposal are limited. They can raise interest rates to reduce the buying power of companies and individuals.

By raising interest rates, it makes it more expensive for banks to borrow money. This, in turn, raises the cost of borrowing for everyone, including average Americans who are trying to take out a loan for a car or a home.

The answer is not a simple one, but it comes down to macroeconomics. The policies that have been put in place by the government have led to this situation and it is going to take some time to correct them. This is where politics come into play. Depending on how you view the world and the role of government…