We have all been affected by this economic downturn one way or another. Finally, our economic recession has come to a halt. It seems like the unemployment rate is finally diminishing as prices everywhere seem to be increasing, such as medical care and college tuition. However, the Federal Reserve believes that prices aren’t going up fast enough. The Federal Reserve is an elite/nonmajoritarian group of private bankers that control our money supply, thus controlling the inflation in our economy. The Feds believe a little more inflation is just what our economy needs to “start a chain reaction” that would eventually create jobs and stimulate economic growth. This came to a shock to the public because inflation is usually considered an economic evil.
-Rebecca Jania
http://finance.yahoo.com/news/Unusual-worry-for-economy-Is-apf-1253519994.html?x=0
Is the rate of unemployment really decreasing? Just because there are jobs being created doesnt mean its big enough to impact the rate. I agree that inflation is something needed to pick up the economy. It shouldnt occur to fast because it might scare a lot of people. A steady increase should be just enough to help our economy.
ReplyDeleteElizabeth Sziler
Other factors can account for a decreasing unemployment rate, including the discouraged worker as well as a decrease in the number of individuals in the labor force. Inflation stimulates economic growth, which explains the caution associated with low inflation. Even though the Federal Reserve is an elite/nonmajoritarian group, their expertise in economics qualifies them to advise us on the workings of our economy.
ReplyDelete-Ben Clemence