Inflation: The Real Menace to Society

We’ve all seen it, and our pockets have definitely felt it: inflation. Defined, inflation is the general progressive increase in price of goods and services. The 2021 inflation rate has increased by 6.2 percent as measured by the CPI from October 2020 to October 2021. The price of goods has nearly doubled compared to the prices 20 years ago. The rate was recently measured in September of 2021, and it has decreased to 4.4 percent. Gas prices are the most noticed and most affected by inflation, driving around for hours to find the best deals in gas stations. 

 

How is inflation bad?

Inflation racks up the prices of necessities without increasing the average pay rate of workers, therefore draining pockets all over the country. Inflation rids money of its purchasing power, and lowers the value of cash. It impacts the cost of living, doing business, taking out loans, government bond yields, mortgages, and pretty much everything else that has affiliation with basic living and the necessities of life. In addition, tax is also increased, and saving money is discouraged, because it will have less value in the long run. Exports and trading with other countries is also lowered, the high prices coming off as unappealing to buyers in other nations.

 

Gas Prices

Everyone who drives a car that runs on gas, needs it. Studies show that “Gasoline is the dominant transportation fuel in the United States…” and the percentage of individuals in the U.S. that use gasoline is 56%. A year ago, the price of gas was about $1.87 a gallon, but now, the nearest Wawa is charging an astounding $3.29 per gallon. The worst part is, the gas stations cannot lower the price themselves.  This is due to the company that regulates gas prices that must take into consideration oil prices and their decrease since the United States oil production has risen. This simultaneously decreases the regular income from oil merchants. In attempt to replace this money, taxes have escalated, taking the biggest toll on the gas industries. Taxes, fuel blends, and margins all take part in the increasing price of gas. On social media, society claims that the government can lower taxes and therefore lower gas prices. On the contrary, policies and legislation can certainly play a role, but it is mainly the oil prices as well as the supply and demand that depend on how the gas is priced. 

 

Beating Inflation

It may be a question, what can help? Honestly, not much, the government has to deal with it itself, but in addition, there are small things that can be done to protect from inflation. Instead of renting an apartment or household, buy it to have a set price rather than rent going up each month. Along with purchasing homes, taking out loans and financing with a mortgage would help. Improving energy efficiency, like using an electric car to save from the influx of gas prices or solar panels. Preparing for shortages, such as saving money can allow an individual to use the resided money to pay. Negotiation is also an amazing tip to get a lower price. In the end, Americans need to depend on the government to finally jump into the churning whirlpool of inflation, while they focus on the little things to help themselves.