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Title: Questions about inflation and what causes it Post by: dolphins4life on April 10, 2011, 05:30:44 pm So I was watching some very old football videos on youtube. Specifically, the 1994 NFC title game. I was staggered by some of the prices I saw in the commercials. Like subway sandwiches were well under $2.
I'm a biology major, not a business major, so I know virtually nothing about inflation and how the economy works. I just know the economy sucks right now. So what causes inflation? Is it rising wages? I know those have gone up too. I remember back then minimum wage was like $5 an hour. Now in MA, it's like $8 an hour. Anybody who can tell me more about what causes inflation and how it could possibly be curbed? Title: Re: Questions about inflation and what causes it Post by: badger6 on April 10, 2011, 07:45:57 pm Supply and demand of goods is a cause of inflation. In our case though it would probably be the devaluation of the dollar. The actual value of goods really doesn't change that much unless there is a shortage. It just takes more of our devalued currency to buy the same goods. The dollar is devalued because our idiot government keeps the printing presses running 24/7. Pretty soon you'll be wiping your ass with hundred dollar bills !!!
Title: Re: Questions about inflation and what causes it Post by: Dave Gray on April 10, 2011, 09:23:40 pm Also, inflation isn't ALWAYS bad. Sometimes, governments will take action to try to inflate their currency. A lot goes into it.
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