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User avatar #93 - ospreys (07/06/2012) [-]
lol this dude needs to search Zimbabwe hyperinflation
+2
#69 - sumakabob **User deleted account** has deleted their comment [+] (1 reply)
#91 - chickenfarting (07/06/2012) [+] (2 replies)
l'm not exactly a economic genius or anything so what I'm thinking is that it of course causes inflation. This is bad on two fronts:   
1. The people are screwed because everything costs more and even though their employers will raise their salary there is still that gap of between everything costs more and when they get an increase in salary.   
2. For countries like USA, France, UK, Spain, Italy (maybe, I'm not really sure) and Germany (maybe, there is of course their large car industry, hurrr durrr) etc where their services sector outweighs their manufacturing industry their economy is 						****					 because imports cost more and although they gave better exports it's bad becuase their imports outweigh their exports.   
   
tl;dr? inflation is bad because of cost to population and imports and exports.   
   
If not please tell me, don't mind people telling me I'm wrong.
l'm not exactly a economic genius or anything so what I'm thinking is that it of course causes inflation. This is bad on two fronts:
1. The people are screwed because everything costs more and even though their employers will raise their salary there is still that gap of between everything costs more and when they get an increase in salary.
2. For countries like USA, France, UK, Spain, Italy (maybe, I'm not really sure) and Germany (maybe, there is of course their large car industry, hurrr durrr) etc where their services sector outweighs their manufacturing industry their economy is **** because imports cost more and although they gave better exports it's bad becuase their imports outweigh their exports.

tl;dr? inflation is bad because of cost to population and imports and exports.

If not please tell me, don't mind people telling me I'm wrong.
User avatar #94 to #91 - akg **User deleted account** (07/06/2012) [-]
Spain is in some deep **** though. Way worse than any of the other countries listed. That is mostly because the country was ruled by a dictator till the 70s(?) and they had to rebuild their country. When the crisis occured, they didn't have enough money to keep up with all the work, so there are a lot of half-finished buildings there, as the government can't pay the workers.

Also, Germany's economy is great. One of the best in Europe. Perhaps the best.
#88 - northyrn (07/06/2012) [-]
Easy explanation of how hyperinflation works:   
Imagine that everyone in England was given £1 million a year rebate from the government. The bottom fifth of households in England today have a yearly income of £15,000 (after tax and benefits).    
   
A sofa store sells one type of sofa. The sofa is poorly made but cheap. Its customers are the people who's income is in the bottom fifth of households, as this is the only sofa they can afford. The sofa manager decides after the rebate he will increase the price of this sofa from £200 to £10,000. People will still buy the sofa as they have a lot more money. Here's why:   
   
This sofa's price was increased alongside inflation. If we look at the original cost of the sofa (£200) and the yearly income of the people buying the sofa (£15,000), we see that people would have spent around 1% of their income on this sofa (200/15,000=~0.01) These people are now given a rebate from the government on top of their existing annual income (increasing their income to around £1.015 million a year), so the price of goods rises (like the sofa's price increasing to £10,000). We see that people would still be paying around 1% of their income on this sofa (10,000/1,015,000=~0.01).    
   
People may have been given more money, but this just means the price of goods has increased. This is how inflation works. If you look at Japanese Yen for instance, you could have a ¥1 million note, but that is only worth around £8,000. Less than those householders in England in the bottom fifth in terms of annual income.
Easy explanation of how hyperinflation works:
Imagine that everyone in England was given £1 million a year rebate from the government. The bottom fifth of households in England today have a yearly income of £15,000 (after tax and benefits).

A sofa store sells one type of sofa. The sofa is poorly made but cheap. Its customers are the people who's income is in the bottom fifth of households, as this is the only sofa they can afford. The sofa manager decides after the rebate he will increase the price of this sofa from £200 to £10,000. People will still buy the sofa as they have a lot more money. Here's why:

This sofa's price was increased alongside inflation. If we look at the original cost of the sofa (£200) and the yearly income of the people buying the sofa (£15,000), we see that people would have spent around 1% of their income on this sofa (200/15,000=~0.01) These people are now given a rebate from the government on top of their existing annual income (increasing their income to around £1.015 million a year), so the price of goods rises (like the sofa's price increasing to £10,000). We see that people would still be paying around 1% of their income on this sofa (10,000/1,015,000=~0.01).

People may have been given more money, but this just means the price of goods has increased. This is how inflation works. If you look at Japanese Yen for instance, you could have a ¥1 million note, but that is only worth around £8,000. Less than those householders in England in the bottom fifth in terms of annual income.
User avatar #85 - kevinhuse (07/06/2012) [+] (1 reply)
You give me his/her ******* name right now, OP! Right ******* now!
User avatar #81 - severepwner (07/06/2012) [-]
That's what they're doing.
How about we don't let these dumbasses be America's mascots.
Seriously guise.
#80 - kornloverx (07/06/2012) [+] (2 replies)
A girl in my class said that once XD (but with world hunger)
#70 - KFCownz (07/06/2012) [-]
this is the future of our country
User avatar #63 - Furubatsu (07/06/2012) [-]
you clearly never herd of germany after WWI
they were so bankrupt that they tried that very thing, but because there was so much money it was worthless, my grandfather had to actually carry a bag (bag, not wallet) of money to buy some bread. The economy went to **** .

The same thing fir china and japan, they printed enough moneyfor the population but now it's worth nothing, that's why in anime's and games a can of lemonade is worth 200Y or something
User avatar #58 - keduti (07/06/2012) [-]
Governmint. Now they're governing the mint. **** , they take everything away from us!
User avatar #55 - lajbros (07/06/2012) [+] (2 replies)
if we print money... and saying that we are running out of money... whydon't we print more :I
#61 to #55 - KFCownz (07/06/2012) [-]
1.open a new tab
2.type in google the word inflation
3.become educated.
#51 - Pyrowe **User deleted account** (07/06/2012) [-]
#2 - niklamacz ONLINE (07/05/2012) [-]
Hovermint
User avatar #73 - ShadeElement ONLINE (07/06/2012) [-]
America invented Facebook...
but stupid people have been around long before we were even a country.
#66 - petal (07/06/2012) [-]
HURRPP DEEERRR GOVERNMINT.   
   
   
inflation, dumbass.
HURRPP DEEERRR GOVERNMINT.


inflation, dumbass.
User avatar #64 - gwegw (07/06/2012) [+] (2 replies)
Because inflation would cripple the economy?
#62 - devout feminist (07/06/2012) [-]
da fuq did i just read!
#49 - noschool ONLINE (07/06/2012) [-]
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