Inflation
Inflation
The rate of increase in price of goods over a period of time.
Tariffs
Tariffs are the tax on traded goods between nations. Affecting the cost on an item as well as spending on such items when traded internationally.
Lumber impact.
In recent years, lumber prices have greater increased, gaining over 17% in 12 months, as of January 2025. These price increases have been part to the tariffs and taxes between Canada and the United States.
Inflations effect on the price of goods.
As jobs increased in wage and the economy hit an all time high, prices of necessities increases almost double. The price of pork increased from 9 cents a pound to around 19 cents. This drastic increase hit families of all classes.
UNICEF Stance on international poverty.
1 in 4 children under 5, live in severe food poverty. This means around 181 million children only eat two or less food groups.
The measurement of Inflation.
Through CPI (Consumer Price Index), inflation is measured through the percent change between the index during one period of time to another.
Impact on farmers.
With 1.9 million farms within the United States, American farmers export $12.84 billion worth of soybeans to China in only 2024. With tariffs, this years sales only in April are down 25 percent.
Lumber Statistics
In September 2015, it costed around $229 per thousand board feet. Yet, in May 2021, it reached an all time high of $1,439 per thousand board feet. In just six years, the price increase around $1,200, all due to supply and demand and inflation.
Germany's way of dealing with their reparations.
Germany paid reparations through printing marks at an increased rate, raising the mark to dollar value to a trillion marks to a U.S. Dollar. This caused the economy to digress into an instable environment.
Federal Chairman Bernanke statement on financial crisis.
"Restoring stability to the market for housing and home mortgages has been a particular area of concern. To address this problem, the Fed has [been] buying securities in the open market. The FOMC has approved purchases of well over $1 trillion this year of mortgage-related securities guaranteed by the government-sponsored mortgage companies".
Effect on the economy.
Inflation can impact the purchase capabilities on citizens within a country. As well as the ability for international trade and business stability.
Effect on the public.
Within the last year, 77% of service firms and 75% of manufacturers increases costs due to U.S. tariffs. As companies continue to raise costs, wages and salaries do not. Leading even more people unable to make a living wage.
The type of share that housing contributes toward.
Housing costs account toward 36% of the CPI index, the largest share relative to the other categories of needs, such as food and energy. Being one of the most expensive costs for citizens.
The effect of inflation on factory jobs around the United States.
Many of the previous wages were increased due to societal pressures, increasing almost 30-50% higher than before. In most cases, even through this increase, the workers decreased in efficiency and skill than before, due to drafting.
President Richard Nixon counteraction to inflation in 1971.
President Richard Nixon implemented a 90-day freeze on prices and wages in 1971, as an attempt to counteract the rising inflation. Initially, this proves effective. However, in 1973, inflation increased to a rate higher than it was during Word War II.
Effects on consumers.
In relation to inflation, it will effect consumers in many ways. Prices will increase on essential products, decreasing the amount that people will be able to buy. As well as interest will increase, making fair loans harder to come by.
Current tariffs from United States on interacting countries.
Due to concern of drug trade, current tariffs are added to Canadian, Mexican, and Chinese imports. With a 25% tariff on Canada and Mexico, and a 10% tariff on China.
Poverty rates in 2016
In 2016, according to the United States Census Bureau, the national poverty rate was around 12.7%. In relation to the U.S. population size at the time, that would be around 40.6 million people living in poverty.
The rate of Marks to Dollars change.
Due to the German reparations after the war, marks increased from 4 marks to a dollar to 69 marks to a dollar, from the sudden increase of money circulation after people stopped hoarding marks at the end of the war.
President Trump's standings on Tariffs.
President Trump used tariffs on Mexico, Canada, and China as an attempt to stop illegal immigration and illegal drug trafficking. These tariffs would encourage the countries to follow President Trump's expectations, as much trade flows between these countries and the U.S. However, these tariffs also impact the citizens of the United States, as many resources and products come from these international countries, raising prices of daily necessities.
Factors that cause inflation.
In 2022, it was found that within the United States, 42% of inflation was due to government spending, 17% from pre-expected inflation rates, and 14% from high interest rates.
Effect on businesses.
Tariffs not only impact the consumers, but business have to prepare for the possible tariff increase within the U.S.. This has caused businesses to be exposed to their competitor. They must evaluate their supply chains and resources to adapt to the income change that may come.
House afforability.
In current years, only about 37 affordable homes are available for every 100 extreme low-income renters. This means that around 705 of low-wage income homes spend over half their income on rent. This means that food, clothes, and other necessities are unable to be resourced effectively.
The U.S. economic situation development.
With a fifth of U.S.'s resources going toward the war, inflation reached an annualized rate of 18.5% between December 1916 and June 1920. Between 1915-1920, the prices of food and clothing almost doubled.
President Sheinbaum response to President Trump's tariffs.
In March 2025, President Sheinbaum responded to President Trump's tariffs on Mexico, saying how the countries are economic trading partners. One that rely on each others resources to retain economic stability. In Mexico, these tariffs could cause serious economic repercussions from the government and businesses alike.