Inflation: Causes, Perceptions, Concerns, Strategies, Actions!
The reality of economic conditions is that we experience inflation, recession, or some condition in between. In recent memory, over time, it’s usually a matter of degree, because it seems that regardless of what the so-called experts claim, prices seem to go up! We are experiencing, what appears to be, an inflationary period, in recent months, with prices going up, in almost all areas of life! Prices of houses, cars. Building materials, groceries, etc. are all more expensive! However, it is important to remember and consider that we have just been through one of (if not the worst) pandemic in this nation’s history, including: quarantines, business closures, supply chain challenges/disruptions, etc. , and no one knows for sure what the future might bring. Will this period be a longer or shorter term challenge/obstacle? With that in mind, this article will attempt to consider, review, examine, and briefly discuss possible causes, perceptions, concerns, strategies, and actions to take.
1. Reasons: Simply speaking, inflation is a prolonged period of rising prices across the economic spectrum. Precisely what causes this varies, but, most of us remember, various inflationary periods, as well as other periods, of more stable economic conditions/costs/prices. How much does the pandemic have to do with what we are currently experiencing, and what else can be factors? Due to concerns, due to unemployment, business closures/challenges, government subsidies, federal deficits, and historically low interest rates, many components of our economy are affected!
two. Perceptions: The perceptions of our citizens have a significant impact on our economy. When consumer confidence is higher, people spend more freely, and across the board. When, it’s not, general economic conditions, slow down!
3. Concerns: The worrying 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 big increase in the purchase price of a house? How long will interest rates remain at record lows? When food, gas, and most other things get more expensive, and eventually wages/salaries no longer keep up, what will happen to the economy as a whole?
Four. Strategies: This nation, politically, is a divided country! We have never witnessed the degree of partisan politics that we see today! How much should the government subsidize, what should be the priorities/targets and for how long? How much is too much versus too little? Perhaps the biggest potential difference is the inability of our elected officials to look at the big picture in a relevant and sustainable way, instead of taking the path of least resistance and using the populist approach. ?
5. Behavior: On what can the final result and ramifications of inflationary periods depend, the strategies and actions that those, in leadership positions, pursue and take!
Wake up, America, and recognize the potential impacts of inflation, both short-term and long-term! Will you demand, responsible action, or will you accept, the same – old, same – old excuses, etc.?