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
Money changes.
Pre 1933, dollar coins had gold in them. You wonder why dimes are small? They were made of silver. Nickles are big because they needed to be to equal the price of the silver coins.
1945 pegged an ounce of gold to 35 dollars.
1973 took us off the gold standard and gold was allowed to float in price.
In 2008 we had quantitive easing to change the value of money again.
In the pandemic the rules were changed again.
Why do we have inflation? Because we keep changing what money means.
It is power creep in a video game. You tweak the rules to keep players engaged, otherwise the ponzi implodes.
Money is debt, and will continue to rise as long as debt is allowed to grow,
If the debt ever has to be paid back, you get deflation, which is debts going bad and money is destroyed.
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