Maybe I should have stayed awake in economics

When I was in college, it was required to take economics. I took it twice a week for 2hrs each day. It was long and it did not help that the class that I had before it happened to be in the same auditorium. I admit, more than once, I fell asleep and had to be awaken by a fellow classmate. The teacher was from the Middle East somewhere and I barely could understand her, so that did not help my situation. Oddly enough, I did manage to pass.
However, maybe if I had stayed awake more, I would have a better understanding of the economy of America today. I mean, everything that I'm hearing and reading says that we are in a recession or on the verge of one--take your pick-- (basically, people don't have money or feel secure enough to be spending it, I guess). Even the government is sending a good part of the American population "free money" to help pump up the economy. I guess my point is, why then are the prices going up on EVERYTHING: gas, milk, food, water you name it, we're paying more for it.
I just don't get it. Why raise prices, when the average American is having a hard time making ends meet? Wouldn't it make sense to at least keep prices at status quo? I'm curious, with these rising prices, how many of us are actually seeing a cost of living raise in our paychecks? Someone has to be getting richer, right? Maybe those of you who stayed awake in your economics class can explain it to me?
Nah, forget about it, it wouldn't make me feel better anyway.