The Briefing Room
General Category => Economy/Business => Topic started by: mystery-ak on April 22, 2021, 02:20:28 pm
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As Inflation Rears Its Ugly Head, Here’s Why You Should Be Worried
Since inflation is a process and not an end-state, it never seems too bad at the start. Unfortunately, Americans should prepare to buckle up for the future.
By Helen Raleigh
April 22, 2021
As the COVID-19 panic slowly recedes across America, you’ve probably noticed that you’re paying more at the pump. Indeed, the national average for regular-grade gas price has risen more than 34 percent, from less than $2.00 a year ago to $2.68 lately. There are several reasons the gas price has spiked up, including the production problem caused by the harsh winter, increasing consumer demand as the country reopens, and one other sinister culprit: inflation.
Inflation is an economic phenomenon that sees a steady rise of prices for goods and services eroding purchasing power — or you can buy less with the same amount of money. Economists usually pay close attention to the inflation rate, or the rate general prices increase. In the United States, the inflation rate is usually measured by the Consumer Price Index, a mathematical tool that measures the prices change for a selected basket of goods and services.
Since inflation is a process and not an end-state, it doesn’t seem too bad in the beginning. As prices for goods and services gradually rise, those who are employed demand higher wages in turn. Employers will usually comply because the early stage of inflation is often associated with booming economic activities and a tightened labor market. So, while workers will usually get the higher wages they demanded, they will typically also have to pay higher prices for things they need or enjoy as businesses find various ways to pass the cost of wage hikes unto consumers.
When consumers notice their money is losing value, it gives them an incentive to spend more and buy more stuff now rather than holding cash. As a result, both consumer spending as well as business investment will increase. Such increases will, in turn, stimulate further economic growth.
more
https://thefederalist.com/2021/04/22/as-inflation-rears-its-ugly-head-heres-why-you-should-be-worried/
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As Inflation Rears Its Ugly Head, Here’s Why You Should Be Worried
Since inflation is a process and not an end-state, it never seems too bad at the start. Unfortunately, Americans should prepare to buckle up for the future.
By Helen Raleigh
April 22, 2021
As the COVID-19 panic slowly recedes across America, you’ve probably noticed that you’re paying more at the pump. Indeed, the national average for regular-grade gas price has risen more than 34 percent, from less than $2.00 a year ago to $2.68 lately. There are several reasons the gas price has spiked up, including the production problem caused by the harsh winter, increasing consumer demand as the country reopens, and one other sinister culprit: inflation.
Inflation is an economic phenomenon that sees a steady rise of prices for goods and services eroding purchasing power — or you can buy less with the same amount of money. Economists usually pay close attention to the inflation rate, or the rate general prices increase. In the United States, the inflation rate is usually measured by the Consumer Price Index, a mathematical tool that measures the prices change for a selected basket of goods and services.
Since inflation is a process and not an end-state, it doesn’t seem too bad in the beginning. As prices for goods and services gradually rise, those who are employed demand higher wages in turn. Employers will usually comply because the early stage of inflation is often associated with booming economic activities and a tightened labor market. So, while workers will usually get the higher wages they demanded, they will typically also have to pay higher prices for things they need or enjoy as businesses find various ways to pass the cost of wage hikes unto consumers.
When consumers notice their money is losing value, it gives them an incentive to spend more and buy more stuff now rather than holding cash. As a result, both consumer spending as well as business investment will increase. Such increases will, in turn, stimulate further economic growth.
more
https://thefederalist.com/2021/04/22/as-inflation-rears-its-ugly-head-heres-why-you-should-be-worried/
Actually, the most sinister reason for gas prices spike is the war by Biden and the Democrats on oil. Biden has loosened the dogs on fighting oil and gas production by deliberately ceasing all drilling on federal lands, by turning the EPA loose on more onerous restrictions on oil and gas development as well as restrictions on pipeline permitting, and by now support for disallowance of the tax code for oil and gas writeoffs which further the interests of all Americans to keep their utility and fuel costs low in favor of promoting the expensive alternatives of renewables.
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Actually, the most sinister reason for gas prices spike is the war by Biden and the Democrats on oil. Biden has loosened the dogs on fighting oil and gas production by deliberately ceasing all drilling on federal lands, by turning the EPA loose on more onerous restrictions on oil and gas development as well as restrictions on pipeline permitting, and by now support for disallowance of the tax code for oil and gas writeoffs which further the interests of all Americans to keep their utility and fuel costs low in favor of promoting the expensive alternatives of renewables.
yep. Not sure why the Federalist carefully avoided tying Biden policies to the spike, even though the cause & effect couldnt be clearer.
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And yet, to my knowledge, every corporate energy & gas company supports Democrats.
God only knows why? All those Keystone Pipeline layoffs came as a shock to so many people.
Again why? How could it come as a shock that Biden and the Democrats did exactly what they said they would do.
They have said they want to shut down oil and gas production in America and they are doing exactly that.
Anyone "surprised" by any of this is a foolish idiot.
Anyone who supported or voted for Biden and his gang of Communists deserve everything they get.
And the rest of us will be punished along with them for their stupidity.
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And yet, to my knowledge, every corporate energy & gas company supports Democrats.
Not every corporate, but most BIG corporate...
God only knows why?
Because it makes it far harder for the little guys to compete.
All those Keystone Pipeline layoffs came as a shock to so many people.
I think dishonest shock.
Again why? How could it come as a shock that Biden and the Democrats did exactly what they said they would do.[
They have said they want to shut down oil and gas production in America and they are doing exactly that.
Anyone "surprised" by any of this is a foolish idiot.
Anyone who supported or voted for Biden and his gang of Communists deserve everything they get.
And the rest of us will be punished along with them for their stupidity.
Exactly
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Anyone who supported or voted for Biden and his gang of Communists deserve everything they get.
And the rest of us will be punished along with them for their stupidity.
Santayana: Those who don't learn from history are doomed to repeat it.
Cyber Liberty: Those who do learn from history are doomed to repeat it because of the idiots who did not.
(Not exact quotes, I know. Too lazy to DDG it.)
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And yet, to my knowledge, every corporate energy & gas company supports Democrats.
God only knows why? All those Keystone Pipeline layoffs came as a shock to so many people.
Again why? How could it come as a shock that Biden and the Democrats did exactly what they said they would do.
They have said they want to shut down oil and gas production in America and they are doing exactly that.
Anyone "surprised" by any of this is a foolish idiot.
Anyone who supported or voted for Biden and his gang of Communists deserve everything they get.
And the rest of us will be punished along with them for their stupidity.
Every bit as deserving are those who chose to not vote, effectively affirming the Democrat vote for President.
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As Inflation Rears Its Ugly Head, Here’s Why You Should Be Worried
Since inflation is a process and not an end-state, it never seems too bad at the start. Unfortunately, Americans should prepare to buckle up for the future.
By Helen Raleigh
April 22, 2021
As the COVID-19 panic slowly recedes across America, you’ve probably noticed that you’re paying more at the pump. Indeed, the national average for regular-grade gas price has risen more than 34 percent, from less than $2.00 a year ago to $2.68 lately. There are several reasons the gas price has spiked up, including the production problem caused by the harsh winter, increasing consumer demand as the country reopens, and one other sinister culprit: inflation.
Inflation is an economic phenomenon that sees a steady rise of prices for goods and services eroding purchasing power — or you can buy less with the same amount of money. Economists usually pay close attention to the inflation rate, or the rate general prices increase. In the United States, the inflation rate is usually measured by the Consumer Price Index, a mathematical tool that measures the prices change for a selected basket of goods and services.
Since inflation is a process and not an end-state, it doesn’t seem too bad in the beginning. As prices for goods and services gradually rise, those who are employed demand higher wages in turn. Employers will usually comply because the early stage of inflation is often associated with booming economic activities and a tightened labor market. So, while workers will usually get the higher wages they demanded, they will typically also have to pay higher prices for things they need or enjoy as businesses find various ways to pass the cost of wage hikes unto consumers.
When consumers notice their money is losing value, it gives them an incentive to spend more and buy more stuff now rather than holding cash. As a result, both consumer spending as well as business investment will increase. Such increases will, in turn, stimulate further economic growth.
more
https://thefederalist.com/2021/04/22/as-inflation-rears-its-ugly-head-heres-why-you-should-be-worried/
We have stockpiled food, paper goods, and other essentials. We downsized and bought a new home, some new furniture, and new appliances. We don't need new clothes or shoes; the clothes and shoes we have will absolutely be fine.
My only concern is the rising cost of health care and gas.
Hoping that our veg. garden produces something this year. Last year's garden was a complete bust.
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Citizen comrades, we live in a different world now.
I trust you will soon learn to understand that.