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Inflation hurt senior citizens on fix income, unemployed, low income families and first time home buyers.
As prices goes up, more income is needed just to keep up. This is one solutionKEEPING UP WITH INFLATION 3% pay raises which is often called cost of living adjustment want keep up with inflation. So additional income is one solution.
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From Wikipedia, the free encyclopedia
This article is about a rise in the general price level. For the expansion of the early universe, see Inflation (cosmology). For other uses, see Inflation (disambiguation).
In economics, inflation is a sustained increase in the price level of goods and services in an economy over a period of time. When the price level rises, each unit of currency buys fewer goods and services; consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy. A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index, usually the consumer price index, over time. The opposite of inflation is deflation (negative inflation rate).
Inflation affects economies in various positive and negative ways. The negative effects of inflation include an increase in the opportunity cost of holding money, uncertainty over future inflation which may discourage investment and savings, and if inflation were rapid enough, shortages of goods as consumers begin hoarding out of concern that prices will increase in the future. Positive effects include reducing unemployment due to nominal wage rigidity. Continue reading “INFLATION— THE SILENT DISPOSAL INCOME LOST”