Every year people are worried if economy only grew let’s say 2%. If we already have things good, why does it still need to grow and it’s a bad thing if it stays the same?
In: Economics
The growth of the economy needs to outpace inflation. If it does not wage earners making the same amount as last year will lose purchasing power. Inflation is necessary to encourage spending. If my dollar will be worth less next year, I’m more apt to spend.
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