Inflation, is the simple answer. But what causes this? Why couldn’t society just keep on keeping on with prices? Examples, a $0.25 for a candy bar, $0.75 for a fast food burger, $30k for a home etc. It worked then, so why not now, why not just agree to lower the prices of everything?
In: Economics
It’s not inflation exactly. It’s depreciation. In a monetary system that allows interest bearing loans the natural result is that prices must go up and purchasing power drops. The government prints more money to prevent recessions and money becomes less valuable.
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