Rising Inflation and the Great Resignation
The U.S. government announced that the consumer price index has risen by 6.2 percent from the same time last year. This represented the biggest jump in inflation since 1990.
According to experts, higher prices will likely continue into 2022 and could jeopardize national economic gains and higher wages for workers. The news also overshadows a positive jobs report and imperils the passage of President Biden’s signature social spending, the Build Back Better Act.
What do economists believe is the cause of the current increase in inflation?
INSTRUCTORS: click the link below to download this week’s lecture for use in your classroom. The deck contains a writing prompt and a debate question as well as other assessment questions.
Videos:
News Articles:
Inflation Continued Its Ugly Rise in October
U.S. News and World Report
11/10/21
U.S. Inflation Is So High. When Could It Ease?
Time Magazine
11/11/21
https://time.com/6116603/us-inflation-trend-2021/
Surging gasoline, food prices fan U.S. inflation
Reuters
11/10/21
https://www.reuters.com/business/us-consumer-prices-surge-weekly-jobless-claims-fall-2021-11-10/
Why is US inflation so high, and when will it begin to subside?
Fox News
11/11/21
https://www.foxbusiness.com/economy/us-inflation-what-to-know
News Articles (Analyses):
A record 4.4 million Americans quit their jobs in September as labor market tumult continued
Washington Post
11/12/21
https://www.washingtonpost.com/business/2021/11/12/job-quit-september-openings/
The number of U.S. workers quitting their jobs in September was the highest on record.
NY Times
11/12/21 https://www.nytimes.com/2021/11/12/business/economy/jobs-labor-openings-quit.html
A record 4.4 million Americans quit their jobs in September
CBS News
11/12/21
https://www.cbsnews.com/news/jolts-job-openings-quit-september-2021/
Hating work is having a moment
Vox
11/12/21https://www.vox.com/recode/22776112/quit-jobs-great-resignation-workers-union
Assessment:
Writing: Explain why American politicians get so nervous when the word inflation is attached to news about the economy. What is the current administration doing to try to lower the rate of inflation?
Debate: Is it good for the American economy to have some inflation or is near zero inflation the only acceptable outcome?
Poll: Have you experienced higher prices in your everyday life?
Short Answer: What do economists believe will finally slow the number of Americans leaving their jobs.
QUIZ:
The current increase in inflation is the highest in the United States since what year?
a. 1986
b. 1990
c. 2003
d. 2010
How many Americans have quit their jobs in 2021?
a. 4.4 million
b. 10.4 million
c. 34.4 million
d. 50.4 million
Which federal institution is seen as most responsible for controlling inflation in the U.S.?
a. the Department of Labor
b. the presidency
c. the Council of Economic Advisors
d. the Federal Reserve
Economists expect that inflation will continue well into 2022. (T/F)
President Biden and his administration previously downplayed the threat of inflation. (T/F)
Most workers who resigned their jobs did so because they were required to work from home. (T/F)
