Do you think that the government has done enough to keep prices lower?
Over the last few years, we have seen massive inflation in the United States. This meant that the prices of everything has gone up, while our savings have become less.
Covid had a huge effect on the economy leading to great economic shifts not only in the United States but also worldwide.
- The supply chain was affected
- Fewer people were able to work
- Large numbers of businesses went bankrupt
One of the solutions was to implement economic stimuli. The idea is that you give people money, and they will spend it. This leads to increased profits for businesses leading to greater employment, and, ultimately, everyone has more money to spend.
One of the side effects of this is that if people have more money to spend, businesses can raise their prices, leading to inflation.
As you can see, the whole issue of inflation and price increases is complicated and has only been touched upon above.
In the past few weeks, gas prices have been reduced by 23%, which hopefully is a sign that better economic conditions are to come.
Please comment below, letting us know why you answered as you did.