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
Goiod topic choice and well done overall Addi! I would like to see you summary a bit longer. Add you own thoughts and opininions about inflation. Also be sure to comment three different days.
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.
I think that inflation effects everyone because go up an then they go back down. Most people don't want to spend their money anymore because of the high prices and the cause of inflation. Inflation effects everyone on a daily bases because of the products we need.
I agree, I think that it affects everybody in different ways by going up and down.
Inflation has change or effected my life a little, it took a bit to move here the prices on the house we either going up or going really low to put on the market. Inflation is bad becuase the prices but other than that I dont think it has effected my life
Inflation effects everybody everyday because of the rising prices of numerous products. For some things Inflation can be good but it is also very annoying.
I agree, inflation does affect people everyday and sometime it is good and sometiems it is bad.
Inflation is gonna impact everyones life many many time because as prices goes up then people are not gonna be able to buy as much as they used to. I think inflation is good for the economy yet people won't like it because the customers would have to be paying more for something that they paid for cheaper earlier.
I agree, I think inflation can be bad for citizens and for our country.
Inflation effects everyone's lives whether they know it or not. Prices have increased dramatically in these past years. Gas prices have gone up sooo much and other things have too. There are necessities that some people can't even afford anymore.
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