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Paying More to Stay Cool This Summer
Inflation, supply, and demand are all factors; so is government policy
Rising fuel prices are not just making it harder to take the all-American family road trip this summer. It’s also making it harder for some people to stay home.
Rising fuel prices are just one aspect of inflation. And we currently have the highest rate of increase to the CPI (consumer price index) in over 40 years. This is the inflation that hurts working people the most.
Inflation — it’s good for some, bad for others
Inflation is great for some. Those who owe money will find that they are paying less in real terms to service their debt. The federal government comes out ahead in this scenario because it our national debt loses value. Also, inflation raises wages — which pushes people into higher tax brackets. That means more revenue for the IRS to collect. Ka-ching!
For those on fixed incomes, inflation is a disaster. They have the same amount to spend each month but can buy less with it. For working class people, inflation can be a killer. Some will go broke, and the more that people on the bottom go broke, the more the money flows upwards. I mean, it has to go somewhere, right?
