InflationEssay Preview: InflationReport this essayWho is hurt and helped from inflationInflation is the rise in the general level of prices in an economy. The ones who are hurt from inflation are the people who arent prepared for it. People who save a lot are hurt from this because with inflated prices they are not able to save as much. When you are someone who saves a lot you are not used to when you arent able to save on a regular basis. The retirement fund is affected by this because you arent able to put as much away as you would like. People who live on social security and different retirement plans are affected because their money is the same no matter what the price of goods are. As prices are rising they are able to buy less because their money is fixed and never increases due to a change in economy. Also, Creditors are hurt by inflation because when someone takes out a loan then that amount of money lessens on its worth due to increasing prices. As prices go up then the value of the dollar deceases.
As inflation increases prices then so do the people who benefit from it. The loan officers use this time to get people to take out more money due to rising prices. People will need more money during this time because people do not want to change their lifestyle due to increasing prices in goods. The flexible income person is not greatly affected by inflation because they are flexible with their income. Business owners can benefit from inflation because they can raise their prices faster than inflation can and thus receive greater revenue. Companies will raise their price if they think that could be an inflation in prices and be receiving more income even before an inflation occurs. Businesses very rarely are hurt by inflation due to the fact that they can raise the price of their product and never see the profit diminish from inflation. Inflation is very hard on the economy as a whole but people do survive this and even benefit
The inflation is so severe that people do not want to work. The government should be doing an economic adjustment. We need to strengthen the financial sector and help businesses to absorb the more rapid increase in interest payments as the economy increases. We must also continue to build our nationalised industries. We will also keep free-trade agreements between China and other countries as they change on the basis of their economies. If governments are unwilling to do the best they can for the people in those countries, we will have to implement more, not fewer, policy reforms. But the big problem with those reforms is that I would suggest going back to the idea of free trade. That is, we have to create a free economic system, so that people, whether they are working or not, can make choices as to what to spend by their spending. I would suggest that we give free money to certain activities that are being conducted in a free economy. For example, the free financial services that the government does with its economic system. People may also use the bank to buy things, like insurance, but I would suggest that citizens pay a higher interest rate if they use their savings account and have a lower interest rate when they invest in this. The free financial services help people to pay their bills so consumers of the same financial firm should avoid going in cash for some time and take out less when they go online. I think that free financial services in our financial services system are actually helping the market economy as well as creating jobs and that free financial services provide a lot of economic benefits for ordinary people and it will help them get jobs with lower incomes and get good incomes. However, the policy changes I propose would only work if I could do it with more government money. I just don’t find it helpful to discuss the details. If I can do it with further government money, I would consider setting up a new company that can pay taxes and invest a lot of money instead of investing a lot of government money. In some cases the economic system might get more competitive with other institutions for the next 20 years. However, I will call for greater government investment and use of government money to create more government investment in new and better places with a better environment for growth. I do not like that politicians do not even bother to make a lot of reforms that get into effect soon. It is only appropriate that they do not go for more government reforms as I do not want them to become part of an increasingly competitive system. When you have a government with its budget to provide goods and services and other government departments dealing with big issues like health policy, security policy, tax policy, education policy, this can make a huge difference. We do not need to introduce new taxes, new business tax breaks, new regulations, and so on but it is perfectly reasonable for governments to do their best to provide the best quality and the highest prices for all of these services. However, we can start by strengthening the economic system again. We can give free money to small businesses. If we do not give some of these activities over the counter to the government as much I would think we should use it to raise the income of companies that need more to make a profit and the profits of smaller companies that need less for some period. The government should offer loans to small businesses and increase the percentage of their income going to the government at their point of operation. If we want to make it much cheaper for entrepreneurs, we could start by increasing the amount of the government’s financial reserve. I know there are many people who consider small businesses to be the biggest winners in the current financial economy. But if you start with the big banks, that is the biggest losers. Since we pay more in interest and deposit taxes than we pay in capital, we should always include in the calculation of our savings that