Economics 101: Inflation

For decades Americans have elected politicians promising free market economics with little or no government intervention. They got what was promised along with stagnant wages, low savings rate, and a bloated, expensive education and healthcare system.

With inflation rates at highs not seen for decades, consumers are blaming Washington for not controlling and reducing inflation. As the old saying goes, “Be careful what you wise for.”

In this video:

• What is inflation? 00:44
• U.S. Consumer Price Index (CPI). 1:21
• Supply and demand. 2:37
• Cost of goods sold. 3:47
• An unregulated free market. 5:37
• Federal Reserve interest rates. 7:46
• Credit and inflation. 9:13
• How your personal inflation rate may vary. 10:12