The Years Go By Money Can Buy Less And Less Items

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Mamahua,Steven Period 8, JROTC 11-25-14 Research Paper As the years go by, money can buy less and less items. In 1990 you could buy a weeks worth of food with 20 dollars, now you can barely buy a days worth of food with 20 dollars. This is because of inflation, which is an increase in the price level of goods and service. This happens because the employees want to be paid more, which in the long run is going to hurt everyone. Sure ten dollars an hour seems amazing, but what happens when you want a burger and instead of one dollars its two. Everything starts to become more expensive, and why is that, its because the place you 're buying the items want to make back the money getting paid to the employees, so they increase the price of the…show more content…
This might not seem like a lot but it will impact you in the long run. Instead of one dollar for a burger, you are going to be seeing two dollars for the same burger. Well should you really care about inflation? In the short term, inflation isn’t that big of a deal, so it doesn’t affect you too much on a daily basis. The average inflation rate yearly is 3.75%. This means that by the time a 25-year old today turn 70 years old, he or she would see inflation turn that million dollars into the equivalent of $190,781 in today’s dollars (Plans for retirement, Feb 23,2013)That would technically mean that in order to be in a good retirement situation then you are are going to need 10 million dollars today in order have at least 1 million dollars when you reach 70 years old. When inflation happens money is not always but sometimes tight. This means that you need to watch on how you spend your money and have to spend it wisely. If money is tight for a store owner and he needs a new employee, he won 't have enough to pay the employee. If the owner cannot find a employee than he/she is going to need help, the only thing that could really he/she could really is a volunteer to help with the job for free. If a volunteer were to help around than the store owner would save a lot of money. In conclusion inflation is a increase in the general price level of goods and service. Inflation does not impact your life in the short run,

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