- One of the main tools The Fed uses to fix inflation is raising interest rates. This is an example of monetary policy.
- The government can introduce fiscal policies to reduce inflation by increasing taxes or cutting spending.
- The Fed has to be careful about raising interest rates because slowing down the economy can lead to hardship for many people.
Many experts have started to suggest a number of different ways to fix inflation. This leads us to one very important question, how? How do we battle inflation?
CAUSES OF INFLATION 2020-2022
- Government Stimulus Spending
- Increased Jobs and Increased Wages
- Demand outstripping Supply
- Deficit Financing of Government Spending
- Population Growth and Hoarding Supplies
- Supply Chain Issues Influencing Circulation
So... here we are... deeply involved in an inflationary period of increased prices and a reduction of goods and services...
At this point in time, it is pointless to point the finger... as there is plenty of blame to go around... the issue that we currently face is, how in the hell do we get out of this inflationary period?
The answer is:
- We need to reduce consumption...
- We need to reduce spending...
- Government spending
- Consumer spending
- We need to reduce the supply of money...
- Increase interest rates...
- Increase taxes...
To blame the Democrats or the Republicans is a waste of time... Politics points the finger of blame for the sole purpose of winning elections... this problem has gone beyond elections... it has seeped into our future and how a majority of us are going to survive...
What we need to understand is that 20% of our population have enough money saved or in income to survive through any type of inflation without hardly ever noticing...
BUT, 80% of the population are the ones who get hurt financially... It is this 80% that is responsible for electing our leaders. We are easily influenced and we need to join together and stop this shit from happening again.
We need to find a way to save ourselves!!!!
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