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
I always hear people complaining about how expensive the cost of groceires at fareway are. I think inflatation is not good because its making people may more. The biggest change from inflamation was 1.25 tree and no longer dollar tree.
I think that inflation is bad because everything prices are rising which means you are possibly losing more money. Right now inflation is not affecting me as bad as it probably will as I get older because I don't pay for a lot of my stuff so not a lot of money is coming out of my bank account.
Inflation affects everyone's life. It causes prices to go up and the economy to go down. For example, gas prices have gone up these past couple of years, it impacts me as a young kid who has to pay for gas with the money I earn from a minimum-wage job. It sucks having to pay so much money to be able to drive to school and work. Inflation isn't good.
I think inflation has a big affect in people lives. We lived through inflation during lockdown and is still going on today but at a very slow rate. I think inflation is a bad thing because it increases prices of everything. I think it would be good if people paychecks went up aswell.
I agree, inflation can be both good and bad.
Inflation affects us because the more it goes up the less we can purchase with the money we have. From the non business owners point of view inflations is a very bad thing and they want to do away with it, however it is the opposite ofr buisiness owners because they can charge more for their product/service.
well inflation does effect us and somein bad ways and some help another people like it affect us with prices but for business sometimes is good is like everithing is gonna go up and down but there are the good thing like when prices go down but when they go up people suffers a little bit
My family has noticed the affect of inflation more and more since Covid. Inflation is very good for businesses, however difficult for families and individuals to get their basic needs because of an increase in price. My family specifically has been more conservative of what we consume and how much in order to fight inflation.
I agree, inflation has changed a lot more since covid.
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.
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