4 ms·
It's simple. Inflation is driven by increasing the dollar amount for, well, everything. He is correct in saying that this is what drives inflation: If every sin
by wanderer_ 5y ago
It's simple. Inflation is driven by increasing the dollar amount for, well, everything. He is correct in saying that this is what drives inflation: If every single thing is worth 20% more, it's really just that the dollar is worth 17% less.
"Inflation" is shorthand for 'price inflation' - every single price and dollar amount goes up, and, when it happens too fast, can tear an economy apart (e.g. 1942 Berliners packing cash into wheelbarrows to go and buy bread).
EDIT: grammar
- wanderer_ 5y agoIn very simple terms, if everyone is getting paid more, then all of the stores can price everything higher... and so on. It's a cycle.
- Calamitous 5y agoIt's not that they _can_ price everything higher, they _must_ price everything higher. Everyone getting paid more includes the stockers, managers, bakers, truckers, farmers, everyone involved in getting (eg.) groceries to you.