September 29, 2022

Inflation Anger – The New York Times

3 min read

Americans are unhappy with the economy. They report. Low confidence He did so at the beginning of the epidemic, when the unemployment rate was four times higher than it is now. Their Emotions towards the economy There are almost as few as there were during the Great Depression of 2008.

How is this possible, given the low unemployment rate and the rapid growth of the economy over the last two years? The culprit is the Americans. Explain As one of the most important issues today: high inflation.

Inflation is different from other issues because it is inevitable. Unlike unemployment, this Affects everyone. And people face it every day – when they go to the grocery store, drive to the gas station or buy almost anything.

Inflation also contributes to the feeling of helplessness. Rising prices make people feel that something has been done to them, rather than a problem. By reducing their spending, people can’t do much about inflation.

And after decades of stagnant wages and salaries, inflation is another example of Americans failing to keep up with their living expenses.

George Lewinstein, a behavioral economist at Carnegie Mellon University, said: “People are so raw right now, two years into the code, that anything new will make them upset and angry.” “It feels like one thing after another.”

The problem is not getting better. The government reported yesterday that prices rose 8.3 percent in the 12 months ending April. Inflation has not remained the same for more than four decades – at a time when Ronald Reagan was president, only two Star Wars movies hit theaters and the Internet was non-existent.

When the price of everything goes up, people cover it by cutting costs – sometimes on essentials. “A lot of people are living near the shore,” Loewenstein said. “So an uncontrolled increase in any aspect of your budget can be devastating.”

Some states have. Implemented tax cuts and other stimulus measures. To provide relief against rising prices. But these approaches can actually exacerbate inflation by fueling higher costs and demand.

Rising prices are a sign that the economy is heating up too much – too much spending, resulting in too much demand for limited supplies. Policy makers can deliberately slow down the economy and stop it. They can raise interest rates (increase the cost of borrowing), raise taxes or cut budgets.

The Federal Reserve has raised interest rates. Central Bank Chairman Jerome Powell said they aim for a “soft landing” – basically, to avoid going too far and causing a recession – but there is no guarantee that they will succeed. Will In the 1980s, the Fed tightened its grip on the economy to reduce inflation.

Some economists fear that the United States is on the same path. Inflation eased compared to April The highest level in 40 years In March, but it’s still high. And the April rate was higher than some experts expected. This could force policymakers to be more aggressive – and increase the risk of a future recession.

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For the first time in decades, a Stradivarius from the early 1700s – considered the “golden age” of violin making. Will be offered for auction.

The Stradivarius, also known as Da Vinci, was the tool of choice for Toscha Seidel, who bought it in 1924 for $ 25,000. The front page of the TimesSaddle was very popular: he did weekly broadcasts on CBS in the 1930’s, and he taught Albert Einstein a lesson. He played the role of Da Vinci on some of the most popular movie scores, including “The Wizard of Oz.”

Saddle, who died in 1962, valued the violin and said he would not trade it for “a million dollars”. When the auction closes next month, it could fetch up to 20 million.

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