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Thursday, June 25, 2009

Inflation,Currency,And Mans Personal Touch

Inflation is a problem thats plauged the world since the dawn of time. prices always go up, and people panic that they cant afford it, if we take it back a couple decades we saw a proactive movement, the initiation of minimum wage. this was a wage that no employer could pay under so that even with inflation the public didnt have to worry about working many jobs just to make ends meet. this way they can hold one job and have enough to get by pretty decently.
Inflation is something we struggle to understand. Without understanding currency and alittle of mans personal touch, this topic would be a struggle for anyone.

Currency is a suplement for trade. before we had money we had items, these items had no set value. this value changed from person to person, and this wasnt a numeric value either mind you. it was what you could trade for. 2 loggs for 20 apples, 5 apples for some iron, ect ect. nothing was set. it was trade you had to haggle, be persuasive. so what changed cuased currency to come into play? who thought of it, why was it such a better idea?
Currency is actualy a brilliant idea. it puts a set value to everything, alowing the growth of different markets business's and unions. if we were still bartering and trading we would want alittle bit of everything for whatever is in need at the moment. Now with currency the values do fluctuate but currency is universal. you can use it for anything, while with trading someone that has something you need may set the limit so high you could never obtain it. putting a value on it makes it obtainable and within reasonable area, becuase the product you have is worth an amount and that amount can go towards what you need.

Example: say you can provide a service, better than anyone else at that. Your service is worth a numeric value of 20. becuase your so good you can provide this service to 5 people in 1 day. so one day of your time is worth a numeric value of 100. You can trade this value of 100 for 5 days worth of food.
now lets look at without currency
Example: Say you provide the same service, but this time your just as good as anyone else providing the same service. this take it takes you have a day to complete one task. but your given no numeric value for this. instead your given 5 apples, so in one day you can get 10 apples witch is enough for a day maybe 2.

in comparison having a numeric value makes life easier in the sence that you get more and it invokes you to work harder at your trade. advancing civilization and technology along with valueable techniques.

now were does inflation come in?
Inflation is the raising of prices due to demand or lack there of products and services. as we require more and more, prices go up and up. as we eat more and more, farmers much raise the price so they can afford more seeds to grow and supply the demand.
this proccess spread throughout the years and now somthing worth 5 cents is 5$, And thats the power of inflation. its not quite as bad a problem as people make it out to be. What we need to be worried about is Mans Personal Touch.

Credit, Credit cards, Banks, ect. this is probably one of the best ideas gone as bad as humanly possible. As things were released that cost more than the average nessesities: Homes, Cars, Dishwashers, TVs. all of these expensive things that we would have to save for months to get, they inspired the idea of credit. "We'll give you this now but you have to pay it in parts untill its all paid off" it made it easier to get what we want now. but then the banks cuaght onto it. "you can spend this much even if you dont have it but you have to pay it back" combine spending money you dont have, and buying somthing you dont have the money for, and this new thing to the world we so commonly deal with is born

Dept. thats right dept is the product of us spending money we dont have. witch is only possible due to credit. Humans definatly arnt perfect. becuase of credit not even the goverment can stay out of dept. Credit is to blame for ressesions and lack of money. becuase if we all spend what we dont have, soon enough the max numeric value is over spend and there literal isnt enough money to cover it all.

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