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
If you have the world’s only remaining Michael Jordan card, it would be very valuable and you would be rich. If they started reprinting 100 million identical cards, it would not be worth anything.
>why not just agree to lower the prices of everything
Related to the example, it’s like asking everyone to destroy their copy of their Michael Jordan card so that it would be very valuable for the last person who holds onto it. As you can imagine, it is very hard to convince the government to “unprint” the dollars that caused the inflation.
Latest Answers