I recently received the following question: Please explain to me how my cost of living can increase by 10-15 percent, grocery bills, fuel, energy, clothing, etc. yet my income only increases about 2-3% which typically matches inflation. I have talked to many people about this and a lot of folks feel the same way, how can inflation only be 2-3% when the cost of living keeps going up 4-5 times that number. I am a college student, but only in my first few years so please explain this in basic terms so that I may understand. Thank you tremendously, Jessica This is a common question-- often, it is phrased as "What is the real inflation rate? Who do I believe?" … [Read more...]
Inflation, Oil and the Environment
I recently received a great question from a 6th Grader on Inflation, Gas Prices and the environment all rolled into one. It isn't often that 6th graders think about these issues so I would like to share my response with you... To whom it may concern, My name is Sam and I am a 6th grade student at (deleted) Middle School. I love traveling. Whenever I go places I see lots and lots of poverty. I think to myself why? Than I look ahead of me and see the outrage sky high prices for food, gas and many other things. You may be wondering why I’m telling you this .I’m doing a project on one of the things that you know a ton about. My subject is inflation of consumer and gas prices. As I think … [Read more...]
Greenspan’s Comments on Inflation
Remarks by Chairman Alan Greenspan Financial education At the JumpStart Coalition's Annual Meeting, Washington, D.C. April 3, 2003 I am pleased to be here today to share with you my perspective on the importance of financial education. I commend the leadership of the JumpStart Coalition and the activities it has undertaken to support teachers working on the front-line of financial education. Trends in Consumer Finances As you are aware, today's financial world is highly complex when compared with that of a generation ago. An understanding of how to maintain a checking and savings account at a local financial institution may have been sufficient twenty-five years ago. Today's … [Read more...]
