Answer Close-Reading Questions
Have students write their responses, or use the Close-Reading Questions to guide a discussion.
• What is inflation? Why has it been happening in the U.S.? (Central Ideas)
Inflation is when the price of nearly everything rises. A 2 percent inflation rate is considered normal, but inflation recently reached its highest rate in 40 years. From May 2021 to May 2022, prices increased by 8.6 percent. Inflation has been increasing more than usual because the pandemic disrupted the global supply chain. Also, Americans started buying more goods, increasing demand. A third cause is the rising price of oil due to high demand and low supply, as well as the war in Ukraine.
• What statement does the political cartoon make about food prices? How does exaggeration help get the message across? (Media Literacy)
The cartoon is saying that a trip to the grocery store has become very expensive for many families. The cartoonist uses exaggeration to make his point by comparing a trip to the grocery store to a Hawaiian or European vacation. Those trips typically cost thousands of dollars, while a grocery trip typically costs much less. The family looks stressed out—especially the mom, who is looking at a long receipt.
• How is the government trying to help reduce inflation? (Key Details)
The Federal Reserve is trying to help by increasing interest rates. Making money more expensive to borrow should lower demand, which in turn should reduce inflation. In June, the Fed made the biggest single increase to interest rates in almost 30 years. The agency will probably continue to slowly raise rates as needed until demand goes down and supply goes up. Then prices should level off.