A general definition of inflation is the increase of products caused by the decrease of the value of the purchasing method. That being said, Inflation rates in the United States have increased in the past decade, to say the least. In the past year alone it has jumped 5.4%, showing the biggest increase in the last 13 years, and according to some experts that percentage will continue to increase. So what are the negative effects of this? Well rising prices on commodities will cause a strain on the lower class of workers in America. Making it difficult for your average 9 to 5 worker to live a comfortable life. This will require more of an increase on minimal wage, because the more prices go up the more base pay needs to increase for sustainable life. Which is something that should happen regardless, when some of the more taxing jobs in this country on workers, provides some of the least amount of pay. The downside of this though, is that it could cause an increase in inflation since corporations are going to have to spend more money paying workers to make products. It is a cycle that will be interesting to see how it plays out in the next few years.
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The cycle of inflation is indeed an interesting topic to look at this year. What do you think caused the 5.4% jump in the past year? Could it be linked to COVID, and if so, do you think the direct influence of Covid had on the cycle?