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A presentation on the dangers of Inflation

Cindy Simpson

on 13 July 2010

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Transcript of Inflation

Double click anywhere & add an idea The Problems with Inflation Inflation is measured by defining
a basket of goods and services
and then keeping track of the cost of that basket Problem #1
Inflation hurts savers Problem #2
People on fixed income
(usually the poor or elderly)
can't keep up with the rise of prices This leads to a greater gap between rich & poor and can lead to more social unrest. Problem #3
If your salary is tied to
inflation and prices go up
you could get kicked into
a higher tax bracket and have
to pay more! Problem #3
Taxpayers can be hurt
Inflation can bump them
into a higher tax bracket
forcing them to pay more!
Problem #4
Producers don't know how to read the change in prices. Is it greater demand or inflation? Problem #5
Wasted time & resources
Time taken up having to
update and label new prices. Inflation can be defined as
a persistent general increase
in prices.
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