Cost of living essays

Cost of living essays Have you ever wondered who came up with the cost of living figure, well it all started in 1919 when the Department of Labor first started publishing a little book, rightly named, Cost of Living Index. This handy book has since then been the guide to the pricing of the goods and services that ordinary people use in their daily living affairs. Not only does this figure wavier, but the name was changed to Consumer Price Index, during the Civil War. With so much economical impact the Index is constantly moving up and down. The causes of change are attributed to the change in the supply and demand of goods. Yet the consumer influences it by the amount of money and credit that they can command. It is also greatly affected by the way the government regulates it and surrounding policies. This Index should be moved up and down, depending on the times, so that it assures price stability. Although, this has not always played out the way that we want it too. From 1800-1870 the price of goods rose tremendously during the times of war. The government tried to introduce the idea of greenbacks a term used for paper money. This however didnt give the expected out come. The paper money was not widely excepted and the price of goods was twice as much, if the goods were bought with greenbacks. Also contributing to the loss of confidence in the dollar from the citizens was the setbacks brought from the military. Such as the blockading of the habor, not allow imports to the U.S., and the seizure of Washington. Although after the war the prices started to drop steadily. This trend seems to continue, never the less, only because the government at the time did not know what to do. Since about the 1900s the problem with inflation increased, mainly caused by the governments efferts to try and lower the national debt because of the wars. Thus, creating the great depression and the numberous recessions we have experienced. Again ...