Inflation Sucks – Everything Is About To Get More Expensive
Inflation is at a 40-year high with record-high prices on pretty much everything and lawmakers are scrambling to help, but it might be too late.
Inflation slightly eased in April but is still hovering around near 40-year highs with an 8.3% year-over-year increase. Even if inflation does start to cool, many economists say it is likely to persist through the year and presents a challenge for policymakers and consumers.
It's bad enough we have to deal with crazy gas prices with prices tickling a crazy $5 a gallon this leaves me with one question. Is this the end of the middle class? The average income in Flint is roughly $20,000 a year, minus taxes it's more like $15k, and that is way below the poverty level. Now with crazy inflation rates, the struggle is about to get real. You would think that pumping a bunch of money into the system with covid relief packages would help, but it's actually the opposite.
Economists are warning that putting extra cash in the pockets of consumers could actually have the opposite effect and lead to longer periods of sustained inflation.
“The problem is when you give people more money, it’s going to fuel inflation even more,” said Veronique de Rugy, a senior research fellow at George Mason University’s Mercatus Center. “It’s a terrible idea, basically is doing the inverse — reverse of what should be done.”Source: NBC25.com