A Simple Guide to Inflation: Understanding What You Can Control

We’re diving into a super important topic – inflation in the U.S. and how it’s been shaped by government spending. Inflation is a trigger word these days,, but I’ll break it down in a way that’s easy to understand. Remember, even though lots of things about money might seem out of our hands, we still have the power to make smart choices, especially when it comes to our money and resources.

A Quick Journey Through Inflation History:

• Before 1913: Picture a rollercoaster – that was inflation back then. It went up and down a lot, especially during wars. Things that caused inflation here were finding mass amounts of gold and silver after wars, lost ships, etc.
• 1913 Onwards: The government created the Federal Reserve, the printing press of our fiat dollars.
• World War I and II: Wars cost a lot, and that made prices go up via production
• 1930s Great Depression: Prices actually fell because the economy was in a tough spot.
• 1950s and 60s: Things were pretty calm, with not much change in prices.
• 1970s Stagflation: A tricky time when prices went up, but jobs were hard to find. It was like being stuck in traffic on a hot day – uncomfortable!
• 1980s: The Federal Reserve got strict, raised interest rates, and inflation calmed down, but it was a bumpy ride.
• 1990s to 2007: A happy time for prices – they didn’t jump around much.
• 2008 Financial Crisis: A big money scare that made prices drop, but only for a little while.
• 2020 and COVID-19: The pandemic shook things up, causing prices to jump as everyone tried to adjust. And as we know, trillions entered the market.

Remember this is a broad overview focusing on the Macro environments of these era’s.
What This Means for You:
You might think, “What can I do when all these big things are happening in the world?” As entrepreneurs and business professionals , you’re probably making great choices. When it comes to your money and how to invest for your future, understanding inflation helps you plan better.

Your Power in Choices:

• Stay educated: Just like keeping up with the latest in your field, staying informed about the economy helps you make smarter decisions.
• Plan Ahead: Think about how inflation could affect your retirement and investments.
• Be Flexible: Sometimes, the world throws a curveball. Being ready to adjust your plans is key and having the right tools at your disposal is crucial.

Remember, even when things seem out of control, like rising prices, you have the power to make smart choices for your future. You control YOUR economy. Keep learning, planning, and adapting. If you do those three things, you will set yourself up for a greater future and not have to worry about things you can’t control.