It's no surprise that inflation, near 8.5%, is hurting average Americans where they feel it the most; at the gas pump.
According to 247 Wall St, the average car driver in America spends 2.24% of their monthly income on gas, while pickup and SUV drivers spend 3.12%.
The Washington Examiner points out that March 2022 had the highest inflation rate America has seen since 1981 – not good news for the President’s approval rating. Still, his promise to tap America’s Strategic Petroleum Reserve brought a great sigh of relief to many, at least for a moment.
According to The Mercury News, President Biden plans to continue using the strategic oil reserve for six months, hopefully allowing things to calm down between Russia and Ukraine and ensuring Americans can withstand the ever-increasing inflation.
Based Politics offers a different perspective on why inflation keeps surging and why gas prices aren’t the only commodity seeing a massive increase – blaming the Federal Reserve for flooding the economy with cash reserves.
Inflation Can Be Good
When the word inflation gets thrown around, it’s easy to think that it’s always negative, but that’s not always the case.
Natural inflation over some time is reasonable. A rise of 1 or 2% in prices over ten years is an intrinsic part of economic growth.
However, anything over 5%, even for a short amount of time, can lead to noticeable inflation that hurts the economy. When an economic system runs over 5% for an extended amount of time, it can lead to what experts call, ‘hyperinflation.’