Everything You Need to Know About the Global Economy and Inflation
The current state of the global economy, the stimulus package, and inflation is being reflected over in this blog post. Jessica Wallace, an economist working for the US government, is the guest on the Nova Money Mindset podcast, which is featured in this post. She’s in charge of putting the stimulus plan into action, so she can tell you about what’s going on behind the scenes.
The US currency is currently experiencing inflation of just over 5%. Inflation is measured by the value of the dollar, which is determined by the country’s GDP. It means that the actual values of products being supplied and received are decreasing. As a result, regardless of how much it costs to make these things, it costs more to sell them, resulting in inflation.
Inflation, on the other hand, is more noticeable in particular industries, such as the energy sector, the semiconductor business, and the automobile industry. It occurs mostly as a result of high raw material prices, which raise the price of the end product, diminishing its actual worth. As a result of the pandemic lockdowns, raw materials are seeing an increase in price due to supply chain (manufacturing and production) issues. As a result of these circumstances, there has been a significant disparity between supply and demand. COVID relief money in the form of stimulus packages are being supplied to enterprises in several nations, including the United States, that are unable to absorb the losses, in an attempt to bridge this gap. The present stimulus package is about 1.9 trillion dollars and is divided into sections to help residents and businesses in the United States.
The government is proposing a minimum wage of $15 per hour as part of a long-term plan to strengthen the economy. In the United States, capitalism is built on billions of dollars in tax revenue from various enterprises that employ US citizens, thereby supporting and driving the economy.
The date of the stimulus package in the United States, which was distributed to all eligible Americans, and the investment in GameStop, bitcoin, and other such companies have a very indirect relationship. And it is this benefit of living in a first-world country, where people can improve the economy by staying at home, that has caused Bitcoin to rise.
Working for the government, Jessica says, has given her a better understanding of how money works. Companies must be supplied with incentives in order to engage in relief programmes, allowing them to earn twice as much as they would otherwise. This now includes the healthcare industry.
Anyone, regardless of who they are or where they live, can invest in this economy. Because a period of great inflation is approaching, everyone should immediately be a member of capitalism’s positive side. Stocks and investments are the only things that can keep up with inflation, which is impossible with regular income. Jessica encourages her listeners to invest and diversify their portfolios. The retirement plan is actually less useful than investing due to the variety of possibilities available. It is critical to get started right now!!!
To learn more about the global economy and stimulus packages, check out the latest episode here!