As of August 18, 2022, inflation rates for consumer prices are currently at 8.5%, and rates are beginning to increase drastically. Since Covid-19 took a toll on everyone considering those employed, skipping ahead two years later, the people left without jobs are beginning to seek wages that benefit them. With supplies cut short and the demand for supplies heightening, businesses are raising their prices of products since there is less being sold in stores. Inflation has been at its highest percentage since the 1970s and now sellers are taking advantage. 

With prices of groceries, gas, housing, and transportation increasing, the inflation-reduction-act-came into effect starting August 16, 2022, and according to The White House Briefing Room, it will be the most aggressive act being put into getting rid of the climate crisis. With past studies being mixed about whether or not there are significant effects on the economy, the main fact is that the government’s solution to solving this issue is to raise prices high enough for people to stop making purchases in order for the pricing to lower. When inflation is controlled, the consumers employed have the money to make purchases, and the service and the economy will benefit. 

 Though it is difficult to tell how long this pricing will continue to increase, raising interest rates is the primary solution to slow the process. If no action were taken to ease increases in the rates of interest, by the second quarter of this year, we would see the economy gradually slip into a recession. If this were to occur, consumers would lose their power of purchase. Those who make a living from paychecks would be affected more as current payments on homes would also rise.

Last week, the U.S. House of Representatives passed the Inflation Reduction Act. This Act was created to make investments to improve the economic conditions of climate change. In hopes, that this act follows through with its plan, consumers will start seeing progress by late 2024, and the action is set to begin with reducing the costs of medicine. Medicare will be able to lower prices and beneficiaries will then be able to pay for their medications.