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 my life all the time and I cant stop it or do anything about it. When i buy things like fuel it cost more money than it should just becuase of the inflation. I think we need to do something about it before it gets way to high and then nobody can buy anything they need.
I agree, there really is nothing to do to help inflation.
There is really no way for inflation to not effect your life. Everyone has to buy things and it gets increasingly harder for people to buy things they need when the price keeps increasing. I think inflation is bad and we need to figure out some solution so families are able to buy the things they need to survive.
Inflation affects everyones lifes, this is because it makes everything more expensive around the world. This tends to be a major problem because the average American might already have a tight budget so spending more is not what they need to do.
I agree, I think it can be a major problem for Americans with tight budgets.
In my opinion, inflation is a problem that needs to be fixed. For many, their pay is not increasing as much as inflation, and prices are getting more expensive. Even if certain things are only slightly increased in price, the slight price increase on everything adds up. Gas prices are a big problem especially for people because they are getting too expensive.
I agree, I think it needs to be fixed and our pays aren't keeping up with inflation.
It affects my life because if I want to buy an inexpensive object, and it's increased to where I can't do it anymore, it changes lots of things. I think inflation is bad.
Inflation doesn't effect me personally but I do still think it's bad financially but is happening for a good reason.
Inflation has seemed like a bad thing to me. I've seen it even just in resturaunts around Harlan and in Council Bluffs. I went to border fare the other day and got a couple average meals and some cheeseballs and it was a little over $50. That's crazy to me for just some food, also when it used to be way cheaper. It's also heavily affecting bussiness owners.
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