Economics can be defined as the study of the allocation of scarce resources that have multiple purposes...
Why are they scarce resources?
They are scarce because the supplier cannot get all the resources that are needed into the marketplace at the time they are needed...
Why do the resources have multiple purposes?
Resources that have multiple purposes are those resources like petroleum crude oil which can be used to make a variety of products such as gasoline, jet fuel, plastics, fertilizer, etc.
When suppliers produce more resources than are needed in the marketplace, then the price goes down but if the opposite takes place then the price goes up... and, when one thinks about that, it makes a lot of sense.
Gasoline prices are increasing because there is simply not enough gasoline being put into the marketplace for sale... this same logic can be applied to all the food that is being sold in grocery stores... and, since most food is transported by 18-wheelers and they have to pay more for gasoline, that also assists in increasing the price of food.
In addition to the price of gasoline, there are less Americans working in the marketplace today than were working two years ago. If there are less workers, then there also must be less products being created that are available for purchase.
Less products as we know mean higher prices...
Inflation is typically controlled by increasing interest rates to remove money from the marketplace... this removal of money will decrease the demand... but, what also happens is that when less products are being produced and purchased, then our economy falls into a recession... which means NO GROWTH AT ALL...
When a country falls into a recession, everyone one of the citizens or residents have less available to them... and each and everyone of them are negatively impacted by this. The only group of people that are not bothered by either inflation or a recession are the WEALTHY...
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