Inflation nation
Critical Analysis
Inflation is a loss of purchasing power over time, meaning your dollar will not go as far tomorrow as it did today. It is typically expressed as the annual change in prices for everyday goods and services such as food, furniture, apparel, transportation costs and toys. According to the data from the chart above, as of December 2021, what was the rate of inflation (the year-over-year percent change in the Consumer Price Index)?
According to the data from the chart above, when was the last time the inflation rate was a high as it was in December, 2021?
According to the data from the chart above, what is the highest the inflation rate has been since 1965?
The price of food grew 6.3 percent and apparel rose 5.8 percent in 2021. Used cars and trucks surged 37.3 percent. What are some examples of inflation that you have noticed in your life?
What is the big picture the chart above tells?
How much do normal people talk about inflation and who do they blame for it?
Inflation can be the result of rising consumer demand. But inflation can also rise and fall based on developments that have little to do with economic conditions, such as limited oil production and supply chain problems. That means most goods, from game consoles to oranges, are more difficult to get to store shelves. But US consumers simply haven’t stopped buying, and that demand-supply disjunction has caused record inflation. Besides the supply chain, what are some of the main causes of inflation? (See learning extension below.)*
Joe Biden became president on January 20, 2021. Check out the inflation rate and President Biden’s popularity since January 2021 in the charts in the visual extension (below)*. Describe the political consequence of inflation on President Biden’s popularity.
The White House has limited tools for reversing higher prices. That task belongs more to the Federal Reserve Board. What is the Federal Reserve Board (The Fed) and how can The Fed try to tame inflation? (see Learning Extension below.*)
What else can a president can do about inflation?
Learning Extension
Action Extension
Contact President Biden and share your concerns about inflation and any advice about what he should do about it.