The reality of economic conditions is we either experience inflation recession or some condition – between! In recent memory, over the course of time, it usually is a matter – of – degree because, it seems regardless of what the so-called experts claim prices appear to go – up!
We are experiencing what appears to be an inflationary period in the past few months with prices rising in nearly every area of life! Prices of homes, cars, building materials, groceries, etc, all, are more expensive!
However, it is important to remember and consider we just went – through one of (if not, the worst) pandemics in this nation's history including quarantines business closings supply-chain challenges/ disruptions, etc, and, no one knows for sure what the future might bring! Is this period going to be a longer-term or shorter-term challenge/ obstacle?
With that in mind, this article will attempt to briefly consider review, examine, and discuss the possible causes perceptions concerns, strategies, and actions – forward.
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Inflation: Causes Perceptions, Concerns, Strategies, and Actions!
1. Causes: Simply, speaking, inflation is an extended period of rising prices, across the economic – spectrum! Precisely, what causes this, varies, but, most of us, recall, several inflationary periods, as well as other periods, of steadier, economic conditions/ costs/ pricing!
How much does the pandemic, have to do, with what we are currently, experiencing, and what else, maybe factors? Because, of concerns, unemployment, business closings/ challenges, government subsidies, federal deficits, and, historically – low, interest rates, many components, of our economy, are impacted!
2. Perceptions: Our citizens' perceptions have a significant impact, on our economy. When, consumer confidence, is higher, people, spend more freely, and, across – the – board! When, it isn't, the overall, economic conditions, slow – down!
3. Concerns: The concerning part, of inflationary conditions, is our fears, of losing ground, to the ever-increasing, cost of living! How long, will people be willing to pay, the huge increase, in the price of buying a house?
How long will interest rates, remain, at historic lows? When food, gasoline, and, most other things, become more expensive, and, eventually, salaries/ wages, no longer, keep – up with that pace, what will happen to the overall economy?
4. Strategies: This nation, politically, is a divided country! We have never witnessed, the degree of partisan politics, we see today! How much, should the government, subsidize, what should be the priorities/ goals, and for how long?
How much is too much, versus, too little? Perhaps, the greatest, potential difference, maybe, the inability of our elected officials, to look, at the bigger – picture, in a relevant, sustainable manner, as opposed, to taking the path of least resistance, and using the populist approach?
5. Actions: What the end – result, and ramifications, of inflationary periods, may depend upon, the strategies, and actions, those, in positions of leadership, pursue and take!
Wake up, America, and, recognize, the potential impacts, of inflation, both, in the shorter, and longer – periods! Will you demand, responsible action, or accept, the same – old, same – old, excuses, etc?