The U.S. Economy is Shrinking
Prices rose even more in September than the previous month. This is a good example of the increasing inflation in America and the effect it has on the U.S. economy. Central banks started raising interest rates and prices of goods rose. Policymakers need to do something about this, as the multiple interest rate hikes will eventually lead to an economic recession. Living rates and expenses are significantly high right now and inflation is the biggest issue for the American economy at the moment. The Inflation Reduction Act is a plan proposed by democrats to decrease health care and living costs. GOP lawmakers believe that the democrats caused inflation with the payments of stimulus checks and government handouts. The way that the Fed counteracts inflation is by hiking interest rates. However, this attempted solution to inflation could end up backfiring and causing an economic crisis. Gross domestic product fell by 0.2 percent in the second qua...