From the article: What Is Inflation?
The government has pumped trillions of dollars into the economy to end the recession. Will this cause inflation, which eats away at your purchasing power? Or should the government spend more, risking inflation, to create more jobs? Which is the greater threat - recession or inflation? Share Your Opinion
Recession should be the bigger concern!!
- Amercia needs some form of "inflation" to give the economy the push it need at this time, sure the interest rates are low, bu Americans don't have the needed confidence to either invest or spend to give the economy the boost it needs. America needs confidence at this time to trun the economy around. Americans also need jobs maybe the up coming election will change the image we have at this time, many are hoping. Concern Citizen,
- —Guest Sammie McNeal Jr.
twodolphns
- When answering the question, why are grocery prices so high, the first reason given was that the increased prices are due to increased price of gas. However, the price of gas, at least in Phoenix, Az, is more or less the same in May of 2012 as was in May 2011. So if the gas prices are within a few cents of what they were last year, why are grocery prices increasing. I did read the other reasons given but would like some clarification on the first reason given.
- —twodolphns
Life in USA
- How is life in Ameerica.............. T-E-R-R-I-B-L-E. Period. No comments.
- —Guest Chan
Rich people cause the recession
- If the rich people got more rich then they will be holding more money and less money will be in circulation. That is the make cause of people suffering.
- —Guest shivana
The country"s draw back
- With all the comments by the people indicates that the United States is in so much trouble and it takes several years if at all anybody hopes that the country will be bouncing back.If the immigrants wait hoping that the country will be bouncing back, then they will be spoiling their children future.The second generation will be having some problem or the other, like they are not qualified better because of the lack of good education system in middle and high school.If one does not educate well during middle and school level I don't think so that is possible in life time to recover in terms of good education.Mostly the problem in America primary, middle,and high school education is secondary.In a way I can say that as a country they don't know how to bring up a children.The education is good in the Master level and Phd level which is not considered as education but it is enhancement of BS education.My argument is the Master level and beyond is one's own interest, but the BS.
- —Guest chan
Inflation
- Both recession and inflation reflect disequilibrium in the economy. Inflation however, imposes an enormous burden on those least able to pay. Moreover, the "cure" for inflation is also quite painful because it means generating a recession to ease price pressures. This can cause job loss that exceeds even that caused by recession (albeit possibly for shorter periods). Inflation debases the currency, encourages consumers to delay payments thus hurting business cash flow, and creates illusory profits as companies chase their tails to ensure meeting inventory replacement costs and discourages saving. The "cure" for recession is somewhat more palatable since it involves easier credit, additional fiscal spending, etc. However, if it is possible to live without either, any society is better off.
- —Guest Jim Wygand
we'll have both
- Demographics drive everything. 10,000 Americans retire daily and this is how we got down to 8.6% unemployment. First you'll see increased wages for STEM people and prices of homes, cars, stocks, commodities, etc plummet. It would be great but for gov't borrowing to cover entitlements for retirees. Then we'll have the real problems associated with our success. All these young folks crippled by obesity (diabetes, joint ailements, blood pressure, etc) will be unable to work! Then we'll have the great humbling of lower standards of living and devalued currency. Read how Malawi can't get imported items because it has no hard currency since the aid spigot dried up. Our borrowing is a form of aid and when we can't borrow any more we'll be out of everything except paper money. You can profit from this set of expected paradigm shifts but you'll have to spend more time working at it than posting on these blogs. Stay healthy and get the kids good at math! Regards, Robert O
- —Guest Robert O
Objective or just Shilling for Obama?
- "...However, the economic stimulus package restored confidence, and GDP growth began to return to a healthy range in the third quarter...." You lost me with that statement. I have yet to come across a casual Keynesian like Kimberly who can detail the line items in BOTH of the so-called 'stimulus'. Flooding the market with fiat money not only corroded our currency, it took us deeper into dept (resulting in the loss of our AAA rating). Coupled with the fact that the 'stimulus' was engineered as a crony-capitalistic/vote for purchase handout to the likes of Solyndra and public sector salaries+pension. REAL and sustained GDP can only come about with the growth of REAL, ACTUAL private capital for REAL goods and services. I have more trust and confidence in my local deli owner’s ability to stimulate the economy than in the Potemkin ‘stimulus’ and GDP of this administration.
- —Guest DanNYC
Inflation!
- I think inflation is much worse. The devaluation of the dollar. It's purchasing power is detereorated. Just ask a banker, they hate inflation! It is too much money chasing too few goods. The government MUST stop printing money.
- —Guest Marty Boone
How sad it is
- Can someone truly imagine that we(America) have the capability or resolve to come out of this without total collapse? Capability doesn't have a chance(stated debt is $46,000 per every man, woman and child in this country). Resolve, no one wants to give up what's important to them... ...that's proven by the debt debate and the unwillingness to face reality and truly cut to give ourselves a chance. As I have said bbefore: "You don't have to worry about defense"(not only can't we afford it); the eenemy is not from without......it is 'us'!!!!
- —Guest Doug R.
Inflation
- Inflation means the price of the commodities have been continuously increased but the demand of the product has been decreased.So the poor people has affected the consumption of the product
- —Guest Dr.G.Prabhakaran
synergy
- We should not fear unemployment because automation is a fact of life. Instead, exchange less military spending for more all expenses paid education grants to absorb jobless into studying what they really enjoy. That 1 in a 1000 ex worker will come up with a better mousetrap we all benefit from. (Note the inventiveness and creativity of prison populations much to the chagrin of the warden, i.e. Shawshank Redemption). Additionally, government should incentivize industry to automate redundancy and actually encourage unemployment and furthering education. Automation reduces overhead and increases capacity. Thus the combination of government provided scholarships for the jobless takes care of recession while incentivized automation takes care of inflation. Of course, as stated, the defense budget will have to be cut for the process to begin.
- —Guest vic
Peter
- Simple answer to complex systemic question: recession (fighting off double dip) is far more important. Recesssion causes direct job losses, taking large amounts of the income needed to pay for inflation driven goods out of the system. People working can cope nicely with moderate inflation much better than they can with job losses and no income.
- —Guest Peter Bowler
Rebuilding the Primary Home Market
- Both inflation and recession create excessive amounts of people that cannot ajust to the changing economic conditions. They therefore fail financially. Where national policy is failing is allowing this to happen because of political reasons, policies do not change as rapitly as our economy changes. When you have large numbers of people failing financially the economy colajpses if prices are deflating or inflating. We need to put into effect policies that help people to suceed financially so they can provide for themselves and their families. Search the words "foreclosure crisis solved" Please read the articles and you will better understand what I am talking about. Thank You
- —happyashell
For The Banks or me personally ?
- Inflation isn't an issue until the Little Guy starts getting his share of the pie.
- —Guest Paul Lanyi
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