Inflation is an increase in prices over a period of time. This can be anything from how much goods cost, or how much people pay for services. Inflation can be caused by more jobs. This causes a higher average household income. People then begin to buy more, leading businesses to increase their prices. They do this because they can, with much more demand taking place, make them more money. This leads to overall inflation- because everything gets a little bit more expensive as time goes on.
Although people usually think of inflation as something bad, it actually runs our economy and helps everyone in the end. Inflation helps people in debt, and it helps businesses because it encourages people to spend their money, instead of save. People have the mindset that if you buy now, it will be cheaper than buying later. This motivates people to buy things and helps businesses make more money. Inflation also encourages producers to employ more people, leading the unemployment rate to lower. This makes everyone more money and makes more people buy more, continuing the process of inflation.
Inflation raises interest rates which slows down the spending of money. The decrease in money spending can eventually lead to unemployment. As inflation rises it highers the cost of living and causes things to cost more.
How does inflation effect your life?
Do you think inflation is good or bad?
Replies
Inflation effects me everyday as I make a purchase almost everyday from gas to snacks to clothing etc. As someone who doesn't make much compared to a full time employee, I think it affects me more because I have less to spend, but it's also a struggle for people who need to provide eveything for themselves. Inflation is looked down apon by many people but it's always going to be something that happens.
I think inflation effects people's lives in a lot of different ways. It effects mine a little bit just when I go shopping or go to get food, it makes it hard to get anything since everything is getting so expensive. I think it's bad because I don't like paying a bunch of money for things that shouldn't cost that much.
I agree, inflation can affect peoples lives in differnet ways whether its for the better or worse.
I believe that inflation has become a huge issue in our world today. I always remember when I was younger my parents always saying how soda never always cost 2 dollars and they said it cost a couple of change to get a can.
It effects my life more often then not due to the prices rising and having to spend more then you normaly would. I think there is always going to be inflation no matter what anyone trys to do people are going to want to make more money and that will only result in producers making there products more costly.
Inflation affects me every day by making me pay more. But it also affects everyone around us as we make more because of inflation as well. Inflation is going to happen no matter what we try to do because people are always going to want to make more money, and when we make more money producers make their products more money.
I agree, there is nothing we can do about inflation because it will always be there.
Inflation affects my life by raising the price of things I buy. I don't think inflation is good because I believe all does is make prices go up and that means your dollar is just worth less than it was. Right away inflation can look good but after a while, it isn't good anymore.
It effects my life by buying groceries each week, since the prices change about every week. Inflation might help the companies, but it doesn't help us consumers to buy things that are expensive. I hope that inflation decreases in the next several years.
In flation effects lifes of many due to the prices rising and having to spend more than usual. Inflation for citizens can be bad casue it can make people barely make ends meet but can be good for the government casue it earns them money.
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