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Transcript
Weekly Article #15- Inflation
http://www.usatoday.com/story/money/business/2014/11/18/produc
er-price-index/19189151/
This article talks about the overall inflation in the US, even with
the considerable drop in gas prices. Inflation has picked up in October
of 2014, especially noticeable in items like automobiles, pork, beef,
pharmaceuticals, and electric power. Prices in items like pork have risen
8.1%. This is all against the odds that gasp prices dropped during the
same time period by 5.8%. The inflation and deflation in the US are
hopefully going to balance properly. Both inflation and deflation poses
threats and benefits. Though deflation lowers prices, it can also lower
wages and put us into a recession. Inflation increases wages, but can
price items too high for consumers to buy, also posing a threat for a
recession. Slowing economies in major players like Japan, Europe, and
China have stirred a worry in the US for like things to happen, but at the
same time it raises the value at the dollar, giving a brighter perspective.
This article relates to civics and economics in any ways. Inflation in
closely related to economics, because inflation of prices in items can
affect the decisions consumers make when buying products, ultimately
affecting the economy. Deflation can have the same affect on people
and the economy. This also ties to civics when looking at political and
foreign affairs. Oil prices have dropped considerably, but the prices are
heavily dependent on the Middle East, so foreign affairs can make or
break these prices. Also, the economic status of other countries can
help raise the value of the US Dollar, which has its own impacts on the
US. This is how this article and inflation are related to civics and
economics.