Topic: Why Inflation is a big problem for a country? - page 2. (Read 593 times)

For example, if the salary for the job you take on increases 2%/year when inflation increases 5%/year.  Your standard of living and expenses go down.  It is an inflationary scenario that causes poverty… As a result the economy stagnates severely, Venezuela is a painful sight of “Inflation”

Depends on how much inflation we're talking about, let's keep in mind that 1-2% rise is deemed healthy for the economy. On the other hand, the opposite of inflation, deflation deemed as catastrophic. Certainly, inflation has skyrocketed the last few months, rising 4-5% in average if I'm not mistaken (for European countries at least, it's about 5% in Greece), leading to price increases in most if not all goods available.

On top of that, electricity and fuels aren't included in that index, thus, the financial burden on the consumer is way higher.

Have I seen a difference in prices the last few months? Definitely, supermarket costs more, while I'm starting to notice price changes day by day. Don't get me started on fuel, a liter of unleaded 95 costs €1,90, which is something I haven't seen before myself (it also happened back in 2012 if I remember correctly).

I'm now a broken record here. Inflation hasn't destroyed economies, too high inflation did. Although there are more or less a handful of countries across the world that have negative inflation, the rest have positive inflation. Even those countries that have negative inflation did not prefer it that way. They simply failed to hit their target inflation.

If inflation destroys an economy, each country today should have already crumbled. If inflation causes more harm than good, no country, instead of all, should have set a certain inflation level.

Without inflation, everything will fall. Deflation happens.

There are really a lot of ways that a government can control or fight inflation. But putting an end to it may not be as easy as it is and that is why most of the countries today are still suffering from the inevitable inflation rate even though each country is also doing their best to control the inflation.  But there are ways really on how a government can reduce inflation. Here's the link: https://www.investopedia.com/ask/answers/111314/what-methods-can-government-use-control-inflation.asp

I believe that we had many years when the world economy did alright, between around 2011 to 2016 it was as stable as it gets as far as I can remember, also between 2001/2002 to 2008 crisis it was still relatively ok as well. These are things that I am making out of my mind right now, I do not clearly remember or even checked the data for it but it wasn't THIS bad for sure.

Between nations handling covid horribly and energy crisis and pandemic causing productions to halt and many other things, profits are not too low for major companies but people are not seeing most of it hence why the world is doing worse. All in all, inflation could be fine as long as it is under %2 but we have been over that for a while now.

Is it possible for people to do something to stop inflation? Maybe with a collected effort of citizens in the country it might be possible to go about stopping inflation, but not as an individual, because you as an individual wouldn’t have what it takes to stop inflation in your country.

Even if it is something you would like to do, because it worries you, do you think that other citizens also have the same interest or that this problem of inflation bothers them as well? The answer is no.

Although it is normal that everyone would complain how the price of things are getting costly, but how many of them are doing to something about it? Then you talk about the government, who are the ones that has as much power that it takes to stop inflation, are they really doing anything about it? The answer is NO.

Don’t  know about that, but inflation has destroyed a lot of economies around the world, take Venezuela as an example. So, I can’t really see how inflation would be regarded a good thing, although I do understand that there is always something good about everything that happens, but some things are way too bad that they cause more harm than good and inflation is one thing that I see as such.
 
In the country where I am living, things has gotten quite bad , lots of things in the market you can’t even afford to pay for them and it’s all because of inflation. You’d see products you used before, and now they will not only get costly, but the quality and the quantity will be reduced as well.

Inflation is an increase in the supply of money circulation. In general,increase in price is a symptom of inflation.

Inflation is good if you're in debt or an investor but it is a big problem for people who had only enough income to provide their necessities. In other words, inflation makes rich people richer and poor people makes poorer.

Inflation is also bad for saving. If you kept your life on saving without making any action, you'de be wipeout in a day or two.Thats why you have to make a plan for the future.

I'm not saying inflation talks are a total nonsense. The media talking about inflation is not nonsense. But the game of inflation is not its presence or absence, because whether we like it or not, inflation has to stay. The discussion on inflation is not on inflation per se but on its level. It's not about wiping out or preserving inflation. It is simply about keeping inflation within tolerable levels. Too high inflation is as bad as too low inflation.


As I've said, if inflation is kept within target, it must be good rather than bad. However, if inflation is rising beyond the maximum tolerable level, it is definitely bad. If the government fails to tame it down, it must be worse.

Well of course --it is feasible to keep inflation under control, but if the local currency is depreciated, it will become more difficult to do so, making the economy worse. Inflation is controlled in a variety of ways some are effective, while others may have negative consequences. Controlling inflation through wage and price regulations, for example, can lead to job losses and a recession.
Stopping inflation, in my opinion, is a difficult task. Just simple as that.

Inflation is the decline in the value of a currency over time. So while living on a steady income means your paycheck will buy less and less things as inflation continues.
and besides that those who are most negatively affected by inflation are those who survive on income from savings, because these savings will be eroded by inflation.
and those on low incomes and fixed incomes such as retirees due to inflation will have to spend a higher percentage of their income on basic needs, and also those who rent will suffer as they will face higher rent payments while at the same time house prices, prices land will rise.

Okay! I am a man with responsibilities then when reading your title, what bounces back in my head is other again the same question: is inflation a problem for countries? really!!...yes, indeed it is an item that must be controlled but in practice it is a big problem for ordinary citizens, mainly the poor, how do you plan expenses at the end of the month for basic purchases, such as You plan to save to buy a house or a car or any valuable asset if the inflation at the end of the year is such that you cannot buy anything or what you projected.

Inflation is always there, it never ceases to be, it is alive and kicking but it is always in a nervous balance, supported by so many aspects that it is chaos when the balance is lost.

In general, the inflation that affects is the accumulated one, not the monthly one, that is why it is terrifying to have $100 and know that the next month those $100 do not buy the same. That there in a little colloquial words, without economic jargon, and I understand it because we all generally suffer from it.

Solution:
it is a controversial issue its control, there is no solution inflation is never zero, it is like entropy itself it is a necessary chaos, although politicians say that adjusting or controlling prices helps, in reality it is a sum of so many things that "healthy" economies they adjust to certain "pre-established" values, so an inflation of 1 digit is allowed, like the Richter scale of tremors that, even if it shakes, the damage caused by gravity is determined by the value of that scale.

The irony of these "assumed" values is that in a country like the United States there are millions of people going hungry, even if that rate is 1 digit.

^ It is not that the government does not think or take action to curb inflation. The entire responsibility of a country is in the hands of the government such as, how the country will be developed, by which step the people of the country can be given a better life, etc etc.


Inflation hurts the country, the living standards of the people deteriorate, and poverty increases. No government wants his country to be underdeveloped slowly. Therefore, it is foolish to think that the government is not taking any steps to curb inflation on purpose. The government also has many limitations. He also has to maintain a lot.

Countries around the world, even the United States, are now plagued by inflation. Controlling inflation is not only the responsibility of the government. We can also try from our own position. Food storage can be very helpful in this case. If food is purchased before the price increases, it is stored properly. Then you will not have to suffer the pain of buying goods at higher prices.

High inflation often causes chaos in the economy of a country, sometimes countries affected by inflation actually get pressure from the prices of goods that continue to rise high, but it is not accompanied by income received by the community so that their economic stability is often disrupted, I think the country should be able to you can keep inflation as low as possible if you don't want chaos to occur in society, because in my opinion low and stable inflation is the main requirement for the country  economic growth as well as improving the welfare of the people of that country.

Technically, I can say the government don't want to take an action to stop inflation because they are advice not to print more fiat currency but they always choose to print more ridiculous fiat every year.
I believe they ought to have learn the solution of inflation through crypto currency but they always choose their own path and I believe that they print more money so they can steal from us.

Wait
Do you mean the US printing money all the time means you don't have to worry about inflation? How come, isn't the more money printed, the higher the inflation they will face? see now what happened to the US from printing too much money during the pandemic? the financial crisis that hit and even inflation was almost unstoppable with a percentage that exceeded last year's.

That's not the concept, and it's not as arbitrary as printing money and circulating it in all directions without thinking about the aftermath. In fact, the United States is now being demanded to reduce circulation, which was indicated when in early January it withdrew all circulation of money in order to re-stabilize inflation so that it would not swell.

because , Inflation has quite a number of impacts on a country's economy, including inflation that can erode people's purchasing power. If this condition decreases purchasing power, then people will be more economical to shop. In fact, one of the drivers of a country's economy is supported by public consumption. If people reduce spending, economic growth will automatically slow down or stagnate, it could even be lower.

Inflation also affects and harms consumers because salaries or income become stagnant, but expenses or expenditures swell due to rising prices for goods or services that are the main needs.

Inflation is mostly as a result of actions taken by the government, for example, the current high level of Inflation in the U.S. and around the world is as a result of many of the policies taken by the government do fight the covid-19 pandemic, lockdowns, printing of more money, etc, were all bound to cause serious Inflation and that's what's happening now and sadly it looks like it'll continue to rise. I don't believe there is no way to stop inflation, government can take counter measures to get things under control, of course that's if they want to, you never truly know what it is the government wants. But having said that, as a Bitcoin user, I use the coin as a hedge against inflation, and thus far it has worked perfectly for me.

A competitive and free trade market is ideal for the economy because production will only be done compared to its demands. There will be no one to control the price and product price will be decided by the people. This is called a market economic system where govt has no infrastructure and control over the resource. That means price and regulation are conducted by the consumer. Some experts suggest that a combination of capitalist and social economy is an idea but there is no practical proof of this theory. You can read more about various economic concepts from this article.

Then what kind of economic conditions are the most ideal.  As explained in basic economics books, there have always been economic systems that have been fully regulated by the government, some have been regulated by the market to mixed ones.  They all have their advantages and disadvantages.  When we complain about the concept of inflation because it is fiat based, the other alternative is crypto, but crypto also cannot escape a financial industry bubble because no one controls it other than the market.  So what kind of economic system is ideal?