Steps Of Persuasion

Steps Of Persuasion

Identify at least four (4) key points of a relevant economic article from either the Strayer Library or a newspaper. The article must deal with any course concepts covered in Weeks 1-8.

Apply one (1) of the following economic concepts (supply, demand, market structures, elasticity, costs of production, GDP, unemployment, inflation, aggregate demand, and aggregate supply) to the key points that you highlighted in Question 1.

Explain how the concept that you identified in Question 2 could affect the U.S. economy.

In your concluding paragraph, state whether you agree or disagree with the economic article identified in Question 1. Provide a rationale for the response.

Use at least three (3) quality resources in this assignment with one (1) being your article. Your assignment must follow these formatting requirements:

• Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
• Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

Paper For Above instruction

The economic landscape is continually evolving, influenced by a myriad of factors that impact national and global markets. Analyzing recent economic articles provides insight into how theoretical concepts translate into real-world scenarios. This paper explores a recent article from a reputable newspaper that discusses rising inflation rates in the United States, highlighting four key points related to this issue. Subsequently, I will apply the economic concept of inflation to the key points, examine its potential effects on the U.S. economy, and offer a personal perspective on the article’s stance.

The first key point identified in the article is the persistent increase in consumer prices over the past year, which has affected the purchasing power of ordinary Americans. The article notes that food and energy costs have surged, contributing significantly to inflationary pressures. The second point pertains to the Federal Reserve's response, including raising interest rates in an attempt to temper inflation. The third key point discusses the impact of inflation on different socioeconomic groups, particularly low-income households that spend a larger share of their income on essentials. The fourth point addresses the potential for inflation expectations to become entrenched, possibly leading to a wage-price spiral if not adequately managed.

Applying the economic concept of inflation, which refers to the general increase in prices across an economy, clarifies these key points. When inflation rises, the value of money declines, reducing consumers' purchasing power and altering consumption patterns. The increase in prices for essentials like food and energy exacerbates economic inequalities, as low-income families allocate more of their income to these necessities. The Federal Reserve's monetary policy actions, such as raising interest rates, aim to control inflation but may also slow economic growth, potentially leading to higher unemployment. Inflation expectations influence wage-setting behaviors; if workers expect higher future prices, they may demand higher wages, fueling further inflation in a self-perpetuating cycle.

Understanding how inflation affects the U.S. economy is crucial, given its broad implications. Elevated inflation erodes savings and reduces consumer confidence, which can dampen spending and investment. Businesses facing higher costs may pass these onto consumers through increased prices, contributing to a wage-price spiral. Moreover, persistent inflation can distort financial markets, complicate monetary policy decisions, and diminish the international competitiveness of American goods. If inflation remains unchecked, it risks transitioning into hyperinflation, which can destabilize the entire economic system.

In my opinion, the article presents a realistic portrayal of current economic challenges. I agree that inflation, if not adequately managed, can have deleterious effects on economic stability and social equity. However, I also believe that the measures undertaken by the Federal Reserve, such as interest rate hikes, are necessary to prevent inflation from spiraling out of control. While these measures may slow economic growth temporarily, they are vital for ensuring long-term stability. Therefore, I support the central bank’s approach, provided that it is implemented prudently to balance inflation control with economic growth.

References

• Board of Governors of the Federal Reserve System. (2023). Monetary Policy Report. https://www.federalreserve.gov/monetarypolicy.htm
• Johnson, L. (2023). Rising inflation impacts American households. The New York Times. https://www.nytimes.com/2023/05/01/business/inflation-american-households.html
• Smith, R. (2022). Understanding inflation and its effects. Journal of Economics and Business, 74, 100-115.
• U.S. Bureau of Labor Statistics. (2023). Consumer Price Index Summary. https://www.bls.gov/cpi/
• Williams, M. (2023). Federal Reserve’s interest rate policies amid inflation. Bloomberg. https://www.bloomberg.com/news/articles/2023-04-15/federal-reserve-interest-rate-inflation