Why do we have inflation ?

[bisdak40]

The only reason why we have inflation, is because they keep printing money ... and there's no one to stop these damn politicians & bankers ...
It's pure theft.

Yes, I agree printing money is one of the factors of inflation because it makes the production of goods and services costs high. Also, the demand for goods and services exceeds the supply which is caused by the printing of money where the supply is low and the demand is high so they will increase the cost of their products and services.

[Stompix]

Only real reason for inflation is for rich people to get richer and poor people to get more poor.

So let me get this right, how does inflation keep on working if rich people get richer and poor people get poorer?
Because if people stop affording stuff then stuff is no longer bought then obviously prices decrease or stuff is no longer produced as much so less profits for the rich manufacturer, less income for all the suppliers and employees so less spending power, and on and on and on...
How is that possible that the Gini measurement has fallen from 70 in 1990 to 62 in 2019 if you say the rich get richer and the poor poorer?

Anyone who is trying to justify inflation is not thinking with his head but he only repeats what someone else told him.

And you know that because....somebody told you, right? 

[notblox1]

So let me get this right, how does inflation keep on working if rich people get richer and poor people get poorer?

Are you blind or what?
Because people die and they keep repeating same stuff all the time.
If you think inflation works than I have nothing else to talk with you, because you are brainwashed.

And you know that because....somebody told you, right? 

No.
Becaue I use my brain for thinking, unlike you.

[Aanuoluwatofunmi]

We continue to experience inflation because there is a lot of things needed to be changed concerning the way the governments policies works on the economy and fiat currency monetary policies, if changes can be done, then there wont be any more changes as we have been having over the years, if we have tested on something and we see that its  not working as planned or expected, then a review should be taken in respect of it in knowing on how it could be considered for some levels of changes desired.

[philipma1957]

OKAY let's try simple math.



In the 1950s when I was born there were about 2.5billion people there are now 8.1 billion people.

So demand keeps growing .

LAST I looked the planet is the same size as it was in 1957.

So demand grows and supply stays the same. Thus inflation.   Either no fucking for 5 years just blow jobs and muff diving. Which would reduce demand. A new pandemic that kills 2 billion or a fusion drive making space travel easy giving tons more supply.

I will likely not see no fucking for 5 years or a fusion drive. I AM not hoping for a 33% death rate pandemic. So I will need to live with inflation.

[laijsica]

The only reason why we have inflation, is because they keep printing money ... and there's no one to stop these damn politicians & bankers ...
It's pure theft.

Yes, I agree printing money is one of the factors of inflation because it makes the production of goods and services costs high. Also, the demand for goods and services exceeds the supply which is caused by the printing of money where the supply is low and the demand is high so they will increase the cost of their products and services.

Inflation is caused not only by money printing but also by external debt and excessive government borrowing from domestic banks. If a country's government's ability to generate diversified income shrinks, they starts printing money, which increases inflation. Also foreign trade imbalance, global recession, above all lack of visionary monetary policy of the government can lead to inflation.

[philipma1957]

The only reason why we have inflation, is because they keep printing money ... and there's no one to stop these damn politicians & bankers ...
It's pure theft.

Yes, I agree printing money is one of the factors of inflation because it makes the production of goods and services costs high. Also, the demand for goods and services exceeds the supply which is caused by the printing of money where the supply is low and the demand is high so they will increase the cost of their products and services.

Inflation is caused not only by money printing but also by external debt and excessive government borrowing from domestic banks. If a country's government's ability to generate diversified income shrinks, they starts printing money, which increases inflation. Also foreign trade imbalance, global recession, above all lack of visionary monetary policy of the government can lead to inflation.

. All the debt and borrowing is due to demand endlessly growing.

when I was 7 years old in 1964 there where 2.5 billion people world wide

there are over 8.1 billion this is a 3x increase in demand

we have the same supply in 2024 as 1964. the planet is 0% bigger.

We do have a few better methods in tech and product which help but they are not keeping up with demand growth.

Printing money and taking on debt are ways to cover up the issue. Ie bandages on a wound that is growing day by day.

Even the pandemic which killed a few extra million people world wide is not a match for the constant demand growth (population growth)

I submit that population growth = demand growth. With maybe a bit shaved off by better production methods.

I also submit that we really need to address the issue soon or a fucking shit ton of hurt will happen.

[Chilwell]

Inflation has always seemed to me to be a good way to take as much money as possible from people that they have saved for years, and when the prices of goods and services go up sharply and wages remain the same, people have to use their savings in order to survive. In this way, ordinary people become poorer and even more dependent on the system, and such people are always easier to control than those who are financially independent.

I applaud this point that you made, the increase in good and services  that is taking place day by day (inflection) some people are feeling good about it most especially the traders. Because traders might benefit from this trend, it's essential to acknowledge the harsh reality. Inflation is not solely caused by the government or the wealthy alone, it's a complex issue with multiple factors at play.

Everyone, regardless of their socioeconomic status, contributes to inflation in some way. Even the poor and traders can inadvertently perpetuate inflation by accepting or even benefiting from higher prices.

Traders, in particular, might profit from inflation by selling commodities at higher prices. They understand that people will still purchase essential goods despite price increases, which can lead to individuals depleting their savings and income.

[Agbe]

The only reason why we have inflation, is because they keep printing money ... and there's no one to stop these damn politicians & bankers ...
It's pure theft.

Yes, I agree printing money is one of the factors of inflation because it makes the production of goods and services costs high. Also, the demand for goods and services exceeds the supply which is caused by the printing of money where the supply is low and the demand is high so they will increase the cost of their products and services.

Let face the fact on the table printing of money has little effect on inflation because inflation is basically based caused by cost of production of the goods and services when the cost price of a material is high it's natural that the purchasing price of the material will be high inflation can be reduced by right government policies, one of the ways that inflation can be reduced is through mass production of goods so that the goods can be surplus so that the price of these good's can be reduced

[Mia Chloe]

Inflation question:
What do you think is the more effective method of curbing real inflation:
- price increases
- tax increase
- triggering deflationary processes
- your answer ?

I think one of the major reasons is the financial system. Back when inflation wasn't a problem most part of the world made use of gold and silver for their transactions and that kept the financial system in place since money wasn't easy to create. However the whole system got too greedy and trashed the concept of making use of rare items like gold for money and adopted paper also known as notes.

Before this whole twist paper was used as a means of exchange back then too but it was more like a coupon to redeem a particular amount of gold or silver which was money. Now printing money is easier and over circulation is becoming a bigger issue.

[DrBeer]

Inflation question:
What do you think is the more effective method of curbing real inflation:
- price increases
- tax increase
- triggering deflationary processes
- your answer ?

I think one of the major reasons is the financial system. Back when inflation wasn't a problem most part of the world made use of gold and silver for their transactions and that kept the financial system in place since money wasn't easy to create. However the whole system got too greedy and trashed the concept of making use of rare items like gold for money and adopted paper also known as notes.

Before this whole twist paper was used as a means of exchange back then too but it was more like a coupon to redeem a particular amount of gold or silver which was money. Now printing money is easier and over circulation is becoming a bigger issue.

I agree with you in part, but as always - there are nuances
Let me start with the fact that since childhood I am fond of numismatics. At first I collected just coins of different countries, then, having grown up, a little changed the vector - on numismatics as an investment and one of the options for diversification.
So I will tell you - if in the “beginning of times” everything was as you describe, then already in the Middle Ages began to massively “depreciate” the currency, and even in gold and silver. How do you ask? Very simple ! Among the ways:
- reducing the weight of precious metal in coins
- lowering the quality of the alloy
- reduction of the coins themselves
- issuance of “in replacement” of gold and silver coins - coins and bilon and other metals.
And the reason for this is extremely simple - there was no possibility to extract more gold because of some restrictions. And when paper money appeared, the process became much easier

[Stompix]

I think one of the major reasons is the financial system. Back when inflation wasn't a problem most part of the world made use of gold and silver for their transactions and that kept the financial system in place since money wasn't easy to create. However the whole system got too greedy and trashed the concept of making use of rare items like gold for money and adopted paper also known as notes.

People need to understand things change!
During the gold standard for 400 years, the average inflation was 0.5%, it was 2% in the last 100 years. The world population was 350,000,000 in 1400 and 1,600,000,000    in 1900, in 400 years it grew by 1.2 billion, then it grew by 7 billion in just one hundred years and a bit.

This means demand for stuff grew  28 times faster during the last century than the previous 4!
What happens when demand grows that fast and supply can't keep up with it?

The gold standard would not have kept prices more affordable, it would have kept the price of meat at 1 gram but you would have ended earning half of that gram over time then a quarter then even less as it would have been gold that got more expensive not product cheaper.

[Gurujebs]

Let face the fact on the table printing of money has little effect on inflation because inflation is basically based caused by cost of production of the goods and services when the cost price of a material is high it's natural that the purchasing price of the material will be high inflation can be reduced by right government policies, one of the ways that inflation can be reduced is through mass production of goods so that the goods can be surplus so that the price of these good's can be reduced

The fact remain! Excess printing of money has big side effects on inflation and math's doesn't lie. In Nigeria, the past government under the office of the president, a lot of money were printed without even the approval of the president and look at what the inflation is saying in Nigeria today, it's 32%, don't say dollar made it to go up because before the subsidy thing, inflation was already in 24% before this government came.

Look at what happened to Zimbabwe currency, very similar to what happened in Argentina. Money printing brings inflation faster than any other factors in any economy.

[target]

Let face the fact on the table printing of money has little effect on inflation because inflation is basically based caused by cost of production of the goods and services when the cost price of a material is high it's natural that the purchasing price of the material will be high inflation can be reduced by right government policies, one of the ways that inflation can be reduced is through mass production of goods so that the goods can be surplus so that the price of these good's can be reduced

The fact remain! Excess printing of money has big side effects on inflation and math's doesn't lie. In Nigeria, the past government under the office of the president, a lot of money were printed without even the approval of the president and look at what the inflation is saying in Nigeria today, it's 32%, don't say dollar made it to go up because before the subsidy thing, inflation was already in 24% before this government came.

Look at what happened to Zimbabwe currency, very similar to what happened in Argentina. Money printing brings inflation faster than any other factors in any economy.

Zimbabwe been always the example of this inflation where money of the country becomes worthless. But this story been around for centuries even during the time of Roman Empire which is the reason how they crumble.

During the Chinese dynasty time, they also have this inflation and they also fall. Empire falls because of monetary system failure. They says it's because they keep the war going which wars are expensive. They have to print money.

[Didia Sofunichi]

It might not be entirely correct to say that the reason we have inflation is because they keep printing money, do you have any empirical evidence?

And besides Nigeria is a country full of knowledgeable human resources that understands the implications of printing excess money