Opinion: The Effects of Rampant Inflation and How to Address It
Inflation is currently the worse that it has been in the past 30 years. The partial cause of this rampant inflation can be attributed to the Federal Reserve's inaction. However, a combination of government stimulus, a supply chain shortage, and rising wages are causing inflation to go above the Federal Reserve’s 2% target. Inflation is costly for everyone in the economy and especially low income individuals as it can be seen as a universal taxation. The only way to adapt to an increase in inflation is by investing your money. Signs of inflation have already been acknowledged a few months ago, but the Federal Reserve did nothing to address it and still kept interest rates at near zero levels because of they wanted to decrease unemployement. Their low interest rates postition had adverse consequences because it causes companies and individuals to keep on investing and spending in an economy that is already on the rise which is leading to higher prices and inflation. Addi...