Inflation is creating many problems for Americans. When prices rise dramatically, the economy slows dramatically because the dollar loses purchasing power.
When wages are stagnant, like they have been for years now, people buy less and less, worsening the economic situation further.
Oil prices are just one factor in this complex network. When oil prices go up, people cannot afford trips to the store to make purchases, that in turn keep the economy buoyed.
It's a vicious cycle. There's plenty of blame to go around too. Instead of wasting time blaming, our leaders must take dramatic steps. Some that I recommend:
Spend on infrastructure - we need it and the benefits would flow through the economy.
Lower taxes & Higher taxes - reduce or eliminate taxes on the those at the lower ends and raise taxes on those at the higher end. This will encourage spending at the lower end and offset the cost from the higher end.
Make health care available to all - this will eliminate the excess health care costs by allowing the system to spread the costs throughout the economy and it will allow those who suffer the most expensive health care crises to participate in the economy since they won't be on the losing end of health emergencies.
Seek energy alternatives - our dependence on oil is cutting our throats. We must take this off the table as a option and become energy self-sufficient.
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