How inflation affects the economy and hurts the poor

Yeira Polito, Writer

Governments and banks have powerful motivation to keep inflation in a good position. In the United States and around the globe over the past years, forwarding has been to manage inflation using money policy. Inflation can threaten to grow and target most banks. Policy makers can raise the minimum interest rate. Borrowing can cost and cross the economy higher by limiting the money supplyso my opinion is that I think people and banks should be more careful and watch out how much money is spent and banks should check security to be safe in case something happens. 

Inflation and the rates of interest move in the same way. By raising interest rates like inflation rising, in the future if the prices keep rising and makes most of us concerned that banks could go bankrupt because citizens can keep taking loans and anything for their families, Making more crimes could happen like robbing a bank if these prices are too high. Elevated inflation can definitely discourage saving, since it builds up the power of the savings over time.

Inflation affects the poor because of tax and increased prices, This hurts the poor because they don’t have enough money to support everything in their life like insurance, rent, food, water, bills, and gas. What makes me scared is that these people can go homeless and I can go homeless, so the increase of homelessness is by a lot and it makes me very worried for those out there who are trying to put food on the table and working too hard just to support their families.

My opinion is very strong on this because I am not so successful so I can’t take care of everything in my life so I have to save money or cents so I can eat, But some of us are have some luck because Illinois has removed sales tax because of inflation but this doesn’t affect much, but it helps a lot of anyone in need.