Introduction There are various effects and causes of bad economy in the U.S. which has attracted people’s concern since the situation became apparent within recent decade or so. The paper addresses the causes of bad economy and reasons why it has reached such an alarming rate. People will always demand for their rights which they really deserve from the government to which they pledge an allegiance. People scream everywhere that they are the %99; meaning that other wealthy people who are living comfortable and luxurious lives are just one percent of the population (Visco 1-12). Governors have the total responsibility on the happenings within United States of America. It is more important to help people afford their needs than just letting the police hit them or put them into jail while they are fighting for justice. Innocent civilians should never be treated unjustly when demanding for their rights. They leave their houses, their jobs, their belongings for the purposes of speaking on behalf of those who can’t speak for themselves with regard to better living standards. Why are they shunned through the use of guns? Why are some of them in prison? Scope The literature review includes all scholarly articles on economic crises and inflation rates obtained via the Academic Search Premier database using the key words inflation rate in the U.S and economic crises in the U.S. and published between the years 1984 to 2011. Organization The paper addresses some of the causes, effects of bad economy and reasons why it has reached the current situation. The introduction gives the overview of the economic crisis within United States of America with the subsequent sections describing the effects of bad economy on individual living standards. This paper is formatted as an argument and complaint at the same time. At the end, it is directed to the wealthy people who are managing the economy and making it go down and back up as they want. Such a paper should be published in public, like newspapers where people around the global know what is going on in the United States. There are some agencies that care about the matter and do not agree with harming the human rights. Words are not enough to describe what is happening nowadays. There must be a fair solution that persuades everybody and let them be proud of living in the United States of America. Problem Statement The paper focuses on real economic issues which encompasses the role of trade costs in the home bias goods spending, acquisition of assets as well as financing of investment expenses. These issues contribute so much in revealing the reasons as to why prices of goods do not adjust appropriately and quickly to exchange rates changes. This has caused so much rising in prices making people to pay more for the same goods and services. The slow rate of increase in income as compared to inflation has led to low standards of living since most of the commodities are not affected on equal measure, making financial planning more cumbersome. This has forced the majority of the people to save more for the purposes of managing higher pricing of goods in the future. Objectives  1. To assess the major causes of bad economy, inflation and its effects on people  2. To establish the necessary measures to be undertaken towards solving economic crises within United States of America. Background on effects of bad Economy in the United States The rate of inflation has badly hurt people’s standard of living, since the rising prices have ensured th