What Really Drives Inflation and Your Cost of Living

Politicians often treat inflation as a campaign talking point, blaming opposing parties. While this behavior fits into short soundbites, they obscure what actually drives up the cost of living. Stripping away the partisan rhetoric reveals that inflation is primarily caused by two coordinated forces: loose monetary policy from the Federal Reserve and massive deficit spending from the federal government. How …

inflation and financial planning arizona

Ongoing Monetary Expansion and Inflation

The cumulative inflation since 2000 clearly reflects a dramatic increase in prices.  This paints a clearer picture of how irresponsible monetary policies and market conditions have affected the dollar’s value and consumer purchasing power over the past two decades. Historical Context: The Tech Bubble and Financial Crisis The journey towards the current economic landscape began with the tech bubble of …

inflation and financial planning

Taking a Hike

Four ways interest Rate Hikes Can Affect Your Finances Unless you live on another planet, you are fully aware of this thing called inflation — whether you’re at the grocery store, a gas station, buying clothes online, hiring a contractor or doing almost any other thing that requires spending money for something. Earlier this year, the Federal Reserve started raising …

Everything is Better with Bacon

It even makes understanding inflation easier. Let’s face it: talking about bacon is always fun. It can even help illustrate a topic that has been in the financial media a lot lately — inflation. In 1991, the price of a pound of bacon cost $2.22 (according to the Bureau of Labor Statistics). Thirty years later, in August of 2021, a …

How Inflation Threatens Retirees

Its effect is subtle, yet significant. Even mild inflation eventually reduces the value of a dollar. If consumer prices rise just 2% a year for the next 25 years, $50,000 will buy the equivalent of $30,477 by the end of 2041. Or to put it another way, a car that costs $50,000 today will cost $82,030 by then. If inflation …