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
A dollar represents a tiny slice of the whole pie of stuff.
Over time, the size of the pie (amount of stuff) grew bigger. But so did the number of slices we cut it into (the total number of dollars).
We made enough slices that you need more slices to get the same stuff compared to the past.
Additionally, when the pie grows, it doesn’t just grow in candy bars, it also grows in MRI machines and tanks. So that certainly doesn’t help.
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