The Bridge to China How is the US economy really doing?
Jun 11, 2024
Author Kyla Scanlon discusses the economic sentiment in the US, emphasizing how perceptions don't always align with reality. Topics include inflation impact on consumers, challenges in the housing market, disparities in city construction between US and China, middle class dynamics, importance of economic education, investing in index funds, transportation challenges, and overall US economy analysis.
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Inflation Defined
- Inflation is a decline in purchasing power, making your currency buy less.
- Post-pandemic inflation was largely caused by supply and demand imbalances.
Inflation Causes
- Supply chain disruptions during the pandemic significantly impacted prices.
- Service inflation is rising due to increased wages, which are increasing because of goods inflation.
Sticky Prices
- Decreasing inflation means prices rise slower, not that prices are falling (deflation).
- Prices tend to be 'sticky,' meaning they don't often decrease even when inflation slows.