Did you know America has the 8th highest inflation rate in the world? Prices are rising faster than ever right now with inflation rates rising to nearly 6% in 2021, but this isn’t anything new to Americans.
In 1778 Americans experienced the highest inflation rate of all time at nearly 30%! In 1913 the Federal Reserve was signed into law with money being backed by the gold standard. The Consumer Price Index followed 6 years later and is still used today to collect average prices of goods. In 1965 the Great Stagflation began where Americans saw sharp increases in inflation rates again. This period lasted nearly 20 years and inflation rose more than 14% at its peak! Of course many people remember the Great Recession of 2008 which began due to policies trying to reduce inflation, clearly they were unsuccessful.
In 2021, prices are 15 times higher than the average prices 100 years ago but we are paying more for the same amount of product. Inflation is inevitable, but there are steps you can take to protect your finances. Investing money in stocks and real estate is a way to secure a solid ROI. Investing more into a retirement account can help prepare yourself for life after your working years.
It is expected that inflation rates are going to jump higher than they have in the past 30 years! Inflation is inevitable and this is not the first time the country has experienced such a steep rise, are you prepared to protect your finances?
Source: Expensivity
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