Is inflation increasing in the US? Definitely at a higher rate than expected. According to CNBC, a home in 1940 "the median home value in the US was $2,938." In 2000 "it had risen to $119,600." This is about 41 times the price. With college, college cost "$2,600 annually" in 1971, but today, it costs "$60,000 total including room, board and fees." This is over 23 times the cost in 1971. Today it is much harder for Americans to be financially well off, let alone pay for a child or children's education. The number of food-insecure and homeless people have increased since then.
The government controls inflation by contractionary monetary policy to "reduce the money supply within an economy by decreasing bond prices and increasing interest rates." They also increased minimum wages from "$0.40 [to] $7.25." However, if the cost of owning a home has increased by 41 times, the cost of education by 23 times, and the minimum wage increasing only by seven times. Increasing interest rates also means alumni have more trouble paying off student and bank loans. The goal of contractionary monetary policy is to reduce spending, slowly the economy and slowing inflation. Maybe this will be beneficial for the next generation but hurts this generation more.
I think policy makers should increase the $7.25 Federal minimum wage to at least $15.00. This will make Americans much better off financially, but not enough so they can spend carelessly. However, if it is increased too much, companies would lack the money to pay their employees, leaving them jobless. I doubt the government is planning to increase minimum wages as "the federal minimum wage of $7.25 per hour has not changed since 2009" and maybe the setbacks of employment outweigh the benefits of increasing wages. I personally think the government is not doing nearly enough to solve inflation and Americans lacking money in general.
References
1. Martin, E. (2017). Here’s how much more expensive life is for you than it was for your parents. CNBC. Life is much more expensive for you than it was for your parents (cnbc.com)
2. Kramer, L. (2021). How Do Governments Reduce Inflation? Investopedia. How Do Governments Fight Inflation? (investopedia.com)
3. How Increasing the Federal Minimum Wage Could Affect Employment and Family Income. (n.d.). Congressional Budget Office. How Increasing the Federal Minimum Wage Could Affect Employment and Family Income | Congressional Budget Office (cbo.gov)