What is inflation? Economics explained
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Inflation is one of the most important concepts in economics. It’s also one of the simplest. It’s just the average rate that prices are rising. A small amount of inflation is healthy for an economy - but how is it calculated and what happens when it gets out of control? Subscribe to The Guardian ► http://is.gd/subscribeguardian Please donate to the Guardian and Observer's Christmas charity appeal 2015 ► http://www.theguardian.com/society/guardian-charity-appeal-2015 Guardian website ► http://is.gd/guardianhome Suggested videos: ► ► Guardian playlists: Comment is Free ► http://is.gd/cifplaylist Guardian Docs ► http://is.gd/guardiandocs Guardian Features ► https://goo.gl/JThOzd Guardian Animations & Explanations ►http://is.gd/explainers Guardian Investigations ► http://is.gd/guardianinvestigations The Global Migration Crisis ► http://is.gd/RefugeeCrisis Anywhere but Westminster ► https://goo.gl/rgH1ri Casetteboy remix the news ► http://ow.ly/TUqey More Guardian videos: We Walk Together ► http://bit.ly/WeWalkTogetherFilm Everyday racism - Akala ► http://bit.ly/akalacif Pretty Radical ► http://is.gd/PrettyRadical1 Capitalism is failing - Paul Mason ► http://is.gd/MasonCif My life as a female bodybuilder ► https://goo.gl/4U4jHt After Banksy: the parkour guide to Gaza ► http://ow.ly/TUpgj If I Die On Mars ► http://is.gd/IfIDieOnMars Revenge Porn: Chrissy Chambers and her search for justice ► http://ow.ly/TUoOs Mos Def force fed in Gitmo procedure ► http://is.gd/mosdef Edward Snowden interview ► http://is.gd/snowdeninterview2014 Bangladeshi Sex Workers take steroids ► http://is.gd/sexworkers Other Guardian channels on YouTube: Guardian Football ► http://is.gd/guardianfootball Guardian Music ► http://is.gd/guardianYTmusic Guardian Australia ► http://is.gd/guardianaustralia Guardian Tech ► http://is.gd/guardiantech Guardian Culture ► http://is.gd/guardianculture Guardian Wires ► http://is.gd/guardianwires Guardian Food ► http://is.gd/guardianfood
Comments
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Here's inflation in a nutshell:
1. Look at the cost of a house in 1986, compare it to today. ($34,000 -> $171,000)
2. Look at the cost of medical insurance in 1986, compare it to today. ($100/mo -> $865/mo)
3. Look at the cost of tuition at a community college, compare it to today. ($18/Credit -> $131/Credit)
4. Look at the cost of tuition at a university, compare it to today. ($38/Credit -> $240/Credit)
5. Look at the cost of an unskilled clerical position in 1986, compare it to today. ($7/Hr -> $12/Hr)
6. Look at the cost of a mill worker in 1986, compare it to today. ($11/Hr -> $14/Hr)
And tada... you have inflation on a pandemic scale.
And who's responsible for this?
The Federal Reserve Bank, neither Federal, nor a reserve, and has more in common with a cartel than a bank. -
this was a waste, a waste of time!! 😡
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This should be titled - Inflation Described, not Economics Explained. However, I like the video, it does give a lot leads towards other topics that would better explain economics.
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No, inflation is an increase in the supply of money in circulation. A general increase in prices is a symptom of inflation, not an example of it. Inflation is only desirable to politicians who can boast about their records when GDP increases. But an increase in GDP is not a valid measure of prosperity. Quality of life is the best measure of prosperity, and that can hardly be quantified, which is why it's considered irrelevant.
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That's a description - not an explanation
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This video is a half-baked explanation that creates more questions than it actually answers.
The creation and issuance of money, per se, only causes inflation if there is more money chasing too few goods. The question is: why does this happen in the first place? The answer: The money supply is created by private banks through the process of loan making in the form of debt, and the amount of money created by banks exceeds the overall amount of savings in the economy and goes primarily toward inelastic goods such as the property and financial markets.
If money creation were restored to government there would be no need for inflation. -
....thank for that, I guess...
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Not a single word on what causes it?
What happened in Zimbabwe in 2008?
What happened in Germany in 1920?
How does it get out of hand?
You say that it's seen as a good thing? How?
How does it keep an economy growing?
If one's personal income doesn't keep up with inflation, one gets poorer, is the same true of Nations? Is this a cause of infinite growth, or merely a symptom?
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