Economics 101: What Policymakers and Voters Need to Know
USASaturday, January 4, 2025
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Everyone's been talking about the economy during the recent election. Both sides promised to take on inflation and globalization, but can they really control these big issues? Not directly. What they can do is help working families with wise policies. Now that one party has control of both Congress and the White House, it's time for lawmakers to brush up on their economics.
You might think inflation is just about prices going up, right? Wrong. It's also about our money losing value. The Federal Reserve, our independent central bank, handles this using the money supply and interest rates. No one wants prices to shoot up or fall suddenly. The ideal is a balance, around a 2% annual increase.
Inflation hurts the most when wages don't keep pace with rising prices. That's where government policies can lend a hand. Forget about tariffs and deregulation; they only make things worse. Instead, let's focus on policies that help average Americans afford their daily expenses. This could involve expanding tax credits, building more affordable housing, or subsidizing child care.
It's not just politicians who should understand economics. As voters, we need to know the basics too. Supply and demand, taxes, subsidies, and inflation – these concepts are crucial for making smart choices at the polls. We have some of the brightest economic minds in the world right here in the U. S. Let's use their wisdom to guide our decisions.
