Who Inflation Hurts and Who Likes Inflation



 


With all the government aid you would think that there would be no people going hungry? But when your money is not worth as much as it used to be, then there can be a problem not necessarily the difference between starving and being full but some difference. This is in reference to the current inflation rate and how it is rising and predicted to rise a even more each year.

This would not be a problem if your wages raised at the same rate as inflation but that is impossible. The better plan would be to stop inflation, so why does the government cause inflation if it is hurting the people and do all people hurt from inflation. There happens to be a few reasons why the government is in favor of more inflation as listed below.

The most apparent reason for the government to increase inflation is to pay of the national debt. The act of printing more money without it being backed causes inflation, thus the dollar is worth less but the government has money to pay its now watered down debt with. They seem to not care that it is hurting the people, but then again did you expect them to actually care?

Another reason why the government could be in favor of the mindless printing of money is because it looks good on paper. The increase in money and buying makes your economy appear as if it is growing when in reality it is all fake. Countless countries have tried this process, they release money into the public to look good and when that is done they try to retrieve the money they have loaned out. This never works and the economy and people will suffer due to the governments poor decisions.

While the poor suffer from the unnecessary effects of induced inflation some actually benefit outside of the government. People who happen to be more wealthy will not suffer from inflation as much because they have wealth to compensate for the increase in prices. Therefore they can benefit when the prices of luxury items go down.

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