Sunday, July 5, 2009

Duck Tales Inflation Lesson

Duck Tales Inflation Lesson :

An episode of Duck Tales dealing with the negative consequences of inflation.
Inflation happens when the cost of goods and services in the marketplace all go up at once. There are two main types of inflation: Demand-pull inflation, and cost-push inflation. Demand-pull inflation happens when people's incomes rise, but the amount of goods and services in the marketplace remain the same. Because people have more money to spend, they are willing to pay more for goods and services. In other words, the total demand will go up, which will cause prices to rise. Demand-pull inflation instead has been described as "more money chasing the same amount of goods." Cost-push inflation happens when the cost of producing the item goes up. This means that the total supply for an item goes down, and again prices rise. the FED will certainly cause a Hyperinflation like that of Zimbabwe Argentina or Yugoslavia if it continues to flood the market place with paper money printed out of thin air and backed by nothing...
for more information visit www.mises.org
Tags:
ron paul inflation economics freedom liberty federal reserve counterfeit money banking government congress

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