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Author Topic: Questions about inflation and what causes it  (Read 1371 times)
dolphins4life
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« 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?       
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badger6
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« Reply #1 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 !!!
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Dave Gray
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« Reply #2 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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