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Anonymous asked in Arts & HumanitiesPhilosophy · 2 months ago

Why does inflation happen?

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  • 2 months ago
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    Population increases and people need more access to money. So governments print more money and the value of currency goes down. That is normal for a country if the inflation rate is less than 2%. Too much inflation leads to decreasing purchasing power and a loss of the value of the country's currency and that could be caused by tariffs, an event that took a large toll on GDP, etc.

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  • 2 months ago

    just one more way the people of today steal from the people of tomorrow

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  • 2 months ago

    Inflation happens because there is no efficient mechanism to control it. It happens for any reason.

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  • 2 months ago

    All those good answers told you well "how" and not "why" inflation happens.

    There is is no systematic answer to anything when you ask 'why' something happens. For example: "Why are some people successful?" all the way to, "Why did God create the world (if he exists)? Have fun.

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  • 2 months ago

    The government prints the money. The more money in circulation the lower the value of your money. The reason for taxes is to take money out of circulation.

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  • Anonymous
    2 months ago

    greed

    greed

    greed

    oh yes

    • Blahblahblah2 months agoReport

      It's more complicated than that

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  • There are various types of inflation and various reasons for each. For example there is Cosmic Inflation, caused by lambda (theoretically), Economic Inflation caused by population to money reserves ratio (one cause) and than there are things like, Ecosystem inflation, growth in a population of a species, Biological Inflation of the lungs, heart, pupil, etc, which occur due to muscle contractions. Do you know what you are looking at?

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  • 2 months ago

    Basic economics start with supply and demand. Inflation begins when the demand for goods/services exceeds production capacity. Prices of these goods/services increase to decrease consumer demand. When prices rise, wages also rise to maintain living costs. It's inevitable, although it is possible to minimize it. Hyperinflation happens when a government prints more money to pay for it's spending. Regular inflation takes its course, although the government keeps printing money therefore prices increase.

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  • 2 months ago

    The 'gifted program' in public schools leads to an overinflated sense of self-importance thus causing the uncontrollable inflation of one's ego.  Their enlarged sense of self-confidence ultimately leads to devastating failure that they have no idea how to cope with.

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  • 2 months ago

    0bama's printing of Trillions upon Trillions of unsupported dollars dilutes the value of each dollar you held in your wallet . That's one common cause anyway .

    Fortunately for us , Trump has not been on a printing spree and so inflation is very , very low especially considering the strength of the economy

    • Who
      Lv 7
      2 months agoReport

       got that wrong
       Obama HAD to print money to bail out the US after the crash in 2007 - if he HADNT the whole wester world financial system would have seized up  - trump HAS been ion a spending spree - BUT he has borrowed money to do it

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