I'm worried about both inflation and the health of the economy. Oil is holding our economy hostage and it's driving the cost of everything up. And as long as countries like India and China continue to experience tremendous growth and along with their demand for oil continues to rise, inflation will continue to rise here and around the world. I hear talk of raising interest rates, but that won't help the problem. It will only send the economy into a deeper recession. America needs a energy plan and fast. Starting with the industry: we need to force them to raise the fuel milage standard. Next we need to revamp our monetary system - the dollar is weak & almost worthless around the world.

The Fed has taken too long to take an anti-inflation stance and now the beast awakens. Anytime the Fed raises its rates Wall Street has sniffles. And while I agree that to raise rates at this point would push the economy into a deeper funk and Wall Street may catch the flu, the horror of runnaway inflation is much worse.
They need to 'bite the bullet' and raise rates now.
Inflation hurts only the fixed income consumers. Workers will get pay increases eventually, though typically not enough to cover rising prices. And corporations love inflation [though none will ever make that statement] as its immediate costs are passed through to the consumer while all debt is now to be repaid in diminished dollars.

Inflation I think is worse because the effects hit quickly. Grocery shopping is something one does often, and I can see the increase and feel the effect. All previous economic downturns seemed like news events compared to this one. This one is real.

The answer seems obvious, though, as to what to do. We need to get off oil as soon as we can. We need more wind and solar. Why don't companies just start building the new facilities for wind and solar. They should also start building train tracks so people don't need cars. I remember once when I was in Germany for a few months back in the 1980's. They had a train that went to every tiny town. In the town I stayed in, one could easily walk or bike to every store or needed destination. Half the people didn't even have cars or want them. That is the way we should go. We should even redesign towns to favor biking and walking. All this would require a lot of building, but that would provide lots of jobs...and that would get the economy going again.

By the way, I do not hear that from either candidate.

I'm a small business owner and my business has slowly decline still for the first of the year. I get less calls and very little work when customers do call. Spon I'll be force out of business because I'll be making under 18,000 clear. With a house payment to make, food to buy and two children to raise that's not enough money to do it all. Soon I'll be in the Welfare line applying for Food Stamp because I can't afford to buy food. That's not a good feeling. Need I mention, I'm a single mother. Not that it makes any difference. It's been a long while since I seen the economy at such weaken state. Where thousands of people are losing their home. The government plan to help home owners, will only help around 15% of home owners. I'll be glad to see Bush get out of office.

I ask this question: Will raising interest rates really curb inflation? The upward pressure on prices has been mainly due to rising oil prices. If we raise interest rate will that have any effect on oil prices? Or will that be like adding gasoline to economic recessional fire?

Over roughly the last twenty-five years the inflation-adjusted wages of the bottom 99% of Americans has risen by about 8%--8% total over 25 years. However, over this same period the inflation adjusted wages of the top 1% has risen by 177% (308% for the top 0.1% and 408% for the top 0.01%). Talk about class warfare. See Time magazine, November 26, 2007.

Also, productivity gains have been substantial over this same period. However, for the most part this productivity gain has not been shared with the workers.

These facts may at least in part explain why most Americans are having trouble making ends meet.

Over the last 25 years or so the Federal Government has made little or no progress in reducing our need for oil--for example, only recently have automobile fuel efficiency standards been raised.

We are now reaping the "benefits" of unbridled free-market capitalism--more and more income to fewer and fewer people.

But, on the other hand we wilingly supported these policies by our votes. So we probably should not cry in our milk.

What should we do now? Get rid of those office-holders who got us in this mess!!

The question is stupid, of course. Inflationary and recessionary influences must always be balanced. From a public vote of amateur economists, one should expect a bias against inflation. It will come from the vast majority who are suffering from price increases, but have not lost their jobs (yet). If they lose their jobs later, those same smug people will experience a great awakening, and reverse their votes.