will start by taking for granted that most people feel that our economy
is struggling and that higher prices are being felt. But why is our
One of the biggest reasons is inflation. So, what
exactly is inflation and why is it a problem? Inflation has recently
been redefined as a rise in prices; however, real inflation is an
increase in the money supply (a.k.a. printing money and credit out of
thin air), and this leads to overall higher prices.
For our dollar, the
increase in the money supply has been alarming and devastating to
everyday Americans. The money supply inflation has been at about 15 percent,
which is much higher than most Americans' yearly pay raise. This is
devastating to Americans because our earnings and savings are worth
less and less; for example, it takes $3.60 to buy a gallon of gas
instead of $2.