Written by Jasir Jawaid
In 1974, as inflation reached 11.04%, President Gerald Ford had an idea: encourage people to save and make disciplined spending. Favoring voluntary actions by people over price restrictions, he suggested that citizens carpool and turn down thermostats to combat inflation as part of his "Whip Inflation Now" movement. Millions of "WIN" buttons were manufactured, and people were encouraged to wear them to evoke solidarity. The plan failed miserably and was later described as a major government PR blunder.
Today, following the pandemic, inflation continues to accelerate rapidly. Thankfully, politicians didn't try to intervene this time around. Instead, the Federal Reserve, which is tasked with setting the monetary policy, responded by increasing interest rates to tamp down inflation. Is it enough? Gas prices are soaring, goods in the grocery store are becoming more expensive, and Americans are paying more for practically everything they were spending this time last year. So, what is inflation, and what can you do?
This article appeared on JoyWallet and can be read here in full.
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