Inflation Equals Dependence on The Government

In the simplest terms inflation is when money is decreased in value and thus prices increase, and deflation is when prices are decreasing. So how can prices be decreasing and increasing at the same time? The core inflation rate is only reported at 1%, so even if items are being raised how come prices are so much higher than one percent? This makes many people wonder why the gold standard was ever dropped.

These questions are quite deserved, and this is how inflation and deflation can be hitting at the same time. Inflation takes effect on some items, such as items everyone needs and uses, items that a person can not really live without. Deflation hits on things of luxury, things that are not essential to life but make life so much more pleasurable.

I see this all the time, I use to constantly think if our money is not worth as much and prices are rising then how come I see so many more expensive cars driving around? Inflation and deflation hitting at the same time makes this question more than simple to answer and also a little disgusting. Inflation hurts and destroys the middle to lower class who are just trying to make it by, but benefits the upper class.

People with large net worth is not effected by inflation, generally the lower class who try and save are hit hard by inflation. Therefore when buying essential things such as food, energy, and gas the lower class will struggle to make it to the next day. While the upper class will buy there new cars and TVs without to much worry.

I am not bashing the upper class, if they have strategies in such a way to be well off during any kind of crisis more power to them. I am not being mean to the lower class who may not have had an opportunity yet to make a better life. No, I am simply stating that with inflation also comes deflation and if you are trying to save your way to a better tomorrow wake up now.

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