As of August 2022, the U.S national inflation rate was 8.263%, up from August 2021 at 5.365%. Compared to 2020, both of these numbers are astronomical; the inflation rate in August of 2020 was a mere 1.310%. Although these numbers may seem minimal they have disproportionately affected some markets. In the car industry alone the average price of a car has risen by 9000 dollars from 38,000 dollars in 2020 to 47,000 dollars in 2022. With continuous supply chain issues, the producer of said cars or any item is unable to produce enough supply to meet the demand. This drives the price up for all items and the issue will not be resolved until the supply chain is fully functioning again.
In the two years since 2020, the government has also spent about 3.8 trillion dollars which affects inflation. The dumping of money into the economy, not to stimulate the market but instead to increase taxes on everyday Americans, effectively devalues all the current money in the economy. This causes consumers to have less to spend and producers to charge more because they have to pass rising material costs off to consumers.
As long as the government continues to overspend money the economic state will keep declining. To pay back these debts, taxes must be raised and Americans must combat rising expenses from both inflation and excessive taxation.
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