Does Inflation Effect You Today

Prices are on the rise and many people wonder why, there is just not a rise in certain products but most have gone up all across the board. This is due to the rate of inflation rising and that is caused mostly by the government printing more money. They call this quantitative easing but all it really does is raise prices and makes most peoples lives harder.

The government causes this to happen and it can be for a number of reasons such as to pay of debts or to make the economy look better than it is. When paying off debts if the government inflates the dollar then it will be worth less but their debt price stays the same. Thus they have just printed off fresh dollars and can use them to pay off the debt with dollars that are worth less. This then causes are prices to go up in order to compensate for the inflated dollar that has just been released.

Another reason the government likes to inflate the money is to make the economy look like it is doing better than it really is. The numbers are misleading, if more money is printed then given to the banks then loaned out to the people at lower interest rates and the people buy stuff with it then it will look like the economy is growing. But the truth is that it is not, we are working off of loaned money that is worth less than a year ago.

The question is why does the government do this if it will not really help the economy, it could be because they do not have a solution to the problems we face and thus they are creating problems that they have solutions to. Or it could be because they do not care about the people and thus only want to solve the problems that are in their face, not ours. No matter the reason they are not doing the right things, and they do not look like they are going to figure out a better plan any time soon.