What is Inflation?
Thursday, June 24th, 2010 at
4:08 am
Shows both positive and negative side
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Filed under: Inflation
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Very VERY good video. Reinforced what I learned in my Econ class!
Another thing I find amazing is the fact it was shown in a kid’s Disney show. I wish there were more cartoons/entertainment like this. (Well…I know it would just end all good but atleast people learn something)
Thanks!
Ducktales was the first animated tv show that went into syndication starting in 1987 because of quality. also, people also have to realize that inflation has BOTH good and bad sides to it.
A good side? Tell me how increased prices and decreased standard of living?
inflation increases foreign trade which means that it creates more jobs as demand for goods rise. if the currency is weak, tourism also increases which means more foreign currency/tourist come into the country which may allow for more foreign investment. inflation is best in a cycle, not as something permanent.
So tell me, when was the last time our all-mighty government cycled inflation down? Get off the government educated spiel and think for yourself. Think micro and not macro, inflation is a loss of purchasing power. . PERIOD. That loss of power is transfered to other entities, be it goverment connected companies or foreigners, who then spend new found purchasing power at the extent of those who lost it. . . . there is NO good in inflation. . it’s just a transfer of wealth.
yes i agree but if you know that a currency is on its way to inflation, how about dumping it and then buying it all back to resell when the inflation cycle ends? inflation stinks but you can make money off it. the euro and the canadian dollar were overpriced when oil peaked 6 months ago. now they are back to normal prices. you could have made good money buying out the canadian dollar at $1 and now selling it at $1.22. this is how people make a living using FOREX and abusing inflation.
what about home owners? since most home buyers don’t pay in full for their house, don’t they receive a real benefit from inflation when they pay off their loan over thirty years? when wages adjust to the inflation, don’t people have more money to spend on other goods/services? (think school loans too)
secondly, why would the government deflate when they have a huge debt? they hold debt, bonds, and contracts for fixed amounts. wouldn’t a lack of cash send them into insolvency immediately?
inflation doesnt increase foreign investment and exports… a currency which is inflated appreciates as fast, or even faster, then the inflation goes.
Only a REAL exchange rate differences would induce exports. And even those are not a real, long-term gain. Almost like peeing on yourself to get warm.
There is never good news with inflation. The hell do I care about a foreign country “investing” in this country. Last time I checked this country once was the largest exporter and investor in other countries.
Yeah, that video really shows how it basically works. The one thing it doesn’t show is how everyone of us can fight back inflation before it actually happens. You don’t know how that works? Try againstinflation[dot]com on google and you will see how that works.