Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
It’s generally believed by economists that a little inflation is good. But it catches up with most
of us sooner or later.
Most people’s pay, wages, pensions (not to mention social security payments) don’t go up as much as the official inflation rate goes up (and personally I think the official rates are understated).
Most of us get poorer every year. There are undoubtedly exceptions, but for most of us that’s how it is. You don't have to be John Kenneth Galbraith to figure this. I have no background in economics or finance. But IMHO it seems that most of us are getting further and further behind.
Many economists, businessmen and politicians maintain that moderate inflation levels are needed to drive consumption, operating under the larger, overarching assumption that higher levels of spending are crucial for economic growth. The Federal Reserve typically targets an annual rate of inflation for the United States, believing that a slowly increasing price level keeps businesses profitable and prevents consumers from waiting for lower prices. There are some who believe the primary function of inflation is to prevent deflation.
http://www.investopedia.com/ask/answers/111414/how-can-inflation-be-good-economy.asp#ixzz43jzdQk5k
