Welcome. This is a blog dedicated to the students enrolled in the CSHS AP Economics classes.
Click on the title of the article, read, and click comment.
Inflation is clearly already around us. Products like milk, eggs and bread have had their prices increase in the last couple of years. Gasoline prices are also on the rise again. Inflation affects consumers because it can lead to a much poorer quality of life if the consumer's income rate is less than that of inflation.
Inflation affects each and everyone in this country right now. As the article stated, the present growth rates are not enough to decrease the unemployment rate. The goal to improving the economy is to increase inflation to make up for the low inflation rate presently.
Even though the unemployment rate is high, the government should focus on the inflation issue right now in order to prevent deflation. If deflation happens, the economy would enter a downward spiral that is pretty much impossible to jump out of. It is, however, quite disturbing to know that even though the inflation of gasoline and other items such as milk and egg already raises the prices relatively high, the inflation is still being considered as too low.
Inflation has been seen this past year very clearly. The price of milk as gone up, from it's average of the year being $2.89 to about $3.30. Inflation needs to be controlled quickly before we pay $10.00 for a gallon of milk.
Rapid change in inflation should be expected after a major recession. I'd just like to reiterate that this idea, as Mr. Shepherdson has stated, seems more like a broad statement that they want to do what is right for the economy. I don't like the idea of the government throwing another half a trillion dollars into the myriad of corporations.
Inflation is one of those things where finding a balance is both critical and tricky. Deflation results in an increasingly steep downward spiral, however too high inflation can be equally damaging. As our economy recovers, it is important to keep inflation rates from rising above people's incomes.
This article shows that politicians will put the issues, like the decreasing welfare of our economy, out of their minds if their political careers are at stake like Bernanke did in 2006. Looking at Adam Smith's invisible hand theory one may think the choice will benefit the economy but self-interest choices that do nothing to solve the problem will only make it worse. Inflation should be set so the government can have a goal to pursue from this recession without going overboard into deflation and a double dip depression.
Inflation is definitely an important issue that must be addressed urgently in the current economic situation. Although people are panicking about unemployment rates and housing prices, it's important to realize that we cannot let our country reach a point where goods and services are not affordable by the general population.
Whether the inflation is too high or too low it has an effect on the consumer. The government is trying to find a way for an equal balance. With already high unemployment rates it is important to keep the inflation below consumer incomes but also high enough to make up for the previous low inflation rate.
Inflation is the main problem of our slow economic growth. Slowly everyday products are becoming less affordable to the general population and when this happens chaos will break loose. I suggest the government put inflation as the top priority of things to fix. Like kyle says if this problem isn't fixed soon milk will be 10 dollars a gallon
Inflation, I believe, is hurting this economy. With so many people unemployed, raising prices on goods is not a good way to go. People are unable to afford necessary goods for their daily lives. However, I do agree that inflation will help the economy as long as the prices aren't too high for the public.
inflation is hurting the economy and hindering the economic recovery of the united states. it is evident in milk and gas and it permeates our society in so many other aspects. people are struggling to make ends meet as it is and this economic inflation is only hurting the process.
Deflation is more harmful than inflation. So, the government should monitor inflation closely in order to prevent possible deflation. As others have said, inflation cannot be too high or too low if we want economic growth. The government just has to be very careful in handling inflation, unemployment rates, and deflation.
Although inflation is important for economic growth, it is obviously important to keep a close eye on it, making sure it does not exceed the income of the consumer. Relatively high inflation will discourage consumer spending and lock us in an economic depression. Deflation, which is even more dangerous than high inflation, will crash our economy. This balance between too much and too little is a critical part to our economic recovery, and it is important that we make it one of our central goals in maintaining it.
Inflation has become a growing problem within our country. It has had wide-reaching effects on a huge number of our citizens. Price inflation is evident in goods such as gas and milk. Many people have not been able to afford goods due to their increased prices. This has resulted in severe economic and social consequences that are to comeback from.
Inflation is clearly already around us. Products like milk, eggs and bread have had their prices increase in the last couple of years. Gasoline prices are also on the rise again. Inflation affects consumers because it can lead to a much poorer quality of life if the consumer's income rate is less than that of inflation.
ReplyDeleteInflation affects each and everyone in this country right now. As the article stated, the present growth rates are not enough to decrease the unemployment rate. The goal to improving the economy is to increase inflation to make up for the low inflation rate presently.
ReplyDeleteEven though the unemployment rate is high, the government should focus on the inflation issue right now in order to prevent deflation. If deflation happens, the economy would enter a downward spiral that is pretty much impossible to jump out of. It is, however, quite disturbing to know that even though the inflation of gasoline and other items such as milk and egg already raises the prices relatively high, the inflation is still being considered as too low.
ReplyDeleteInflation has been seen this past year very clearly. The price of milk as gone up, from it's average of the year being $2.89 to about $3.30. Inflation needs to be controlled quickly before we pay $10.00 for a gallon of milk.
ReplyDeleteRapid change in inflation should be expected after a major recession. I'd just like to reiterate that this idea, as Mr. Shepherdson has stated, seems more like a broad statement that they want to do what is right for the economy. I don't like the idea of the government throwing another half a trillion dollars into the myriad of corporations.
ReplyDeleteInflation is one of those things where finding a balance is both critical and tricky. Deflation results in an increasingly steep downward spiral, however too high inflation can be equally damaging. As our economy recovers, it is important to keep inflation rates from rising above people's incomes.
ReplyDeleteThis article shows that politicians will put the issues, like the decreasing welfare of our economy, out of their minds if their political careers are at stake like Bernanke did in 2006. Looking at Adam Smith's invisible hand theory one may think the choice will benefit the economy but self-interest choices that do nothing to solve the problem will only make it worse. Inflation should be set so the government can have a goal to pursue from this recession without going overboard into deflation and a double dip depression.
ReplyDeleteInflation is definitely an important issue that must be addressed urgently in the current economic situation. Although people are panicking about unemployment rates and housing prices, it's important to realize that we cannot let our country reach a point where goods and services are not affordable by the general population.
ReplyDeleteWhether the inflation is too high or too low it has an effect on the consumer. The government is trying to find a way for an equal balance. With already high unemployment rates it is important to keep the inflation below consumer incomes but also high enough to make up for the previous low inflation rate.
ReplyDeleteInflation is the main problem of our slow economic growth. Slowly everyday products are becoming less affordable to the general population and when this happens chaos will break loose. I suggest the government put inflation as the top priority of things to fix. Like kyle says if this problem isn't fixed soon milk will be 10 dollars a gallon
ReplyDeleteInflation, I believe, is hurting this economy. With so many people unemployed, raising prices on goods is not a good way to go. People are unable to afford necessary goods for their daily lives. However, I do agree that inflation will help the economy as long as the prices aren't too high for the public.
ReplyDeleteinflation is hurting the economy and hindering the economic recovery of the united states. it is evident in milk and gas and it permeates our society in so many other aspects. people are struggling to make ends meet as it is and this economic inflation is only hurting the process.
ReplyDeleteDeflation is more harmful than inflation. So, the government should monitor inflation closely in order to prevent possible deflation. As others have said, inflation cannot be too high or too low if we want economic growth. The government just has to be very careful in handling inflation, unemployment rates, and deflation.
ReplyDeleteAlthough inflation is important for economic growth, it is obviously important to keep a close eye on it, making sure it does not exceed the income of the consumer. Relatively high inflation will discourage consumer spending and lock us in an economic depression. Deflation, which is even more dangerous than high inflation, will crash our economy. This balance between too much and too little is a critical part to our economic recovery, and it is important that we make it one of our central goals in maintaining it.
ReplyDeleteInflation has become a growing problem within our country. It has had wide-reaching effects on a huge number of our citizens. Price inflation is evident in goods such as gas and milk. Many people have not been able to afford goods due to their increased prices. This has resulted in severe economic and social consequences that are to comeback from.
ReplyDelete