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
There are more dollars than there used to be. The central bank prints money to pay for government expenditures but every dollar they create out of thin air devalues all dollars. It takes more dollars to buy the same amount of goods and services. That is inflation. It literally means an increase in the money supply.
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