By: Reese Yan

Gas costs 50% more this year than it did last year. In 2021, everything in Dollar Tree was a dollar, but this year, it’s a dollar and twenty-five cents. Target has also seen a 20 cent markup. Why is this happening?

Normally, money and supplies are balanced; however, in some associations, they have become unbalanced. This happens when rates go down, so Feb has to constantly give more money, making the amount of money in circulation rise. After the money goes up, the resources get expensive since everyone has a lot of money now people can afford it.

Another cause of inflation is when money is balanced while supply decreases. When the supply decreases, the money for the product rises, causing inflation. Even so, there are ways to solve the problem of money increasing and resources decreasing. For supplies, the prices have recently gone down because the government has found a way to negotiate with other countries. In order to decrease the amount of money, you have to raise the rate, so whenever the bank loans people money, people would have to give back a lot more than what they loaned. However, when the rate rises in the United States money gets more valuable, causing currency from Japan to lose value when converted to U.S money. Though it is a good thing for the United States, it’s bad for countries like Japan. Therefore, if America raises its rate, it will hurt our allies’ economies.

Right now, the prices have become a little cheaper, which is good. Inflation will take a long time to go down, but fingers crossed, the prices will improve.