Why did inflation become embeded in the economy ?

Question

Houses, Automobiles, Beef, Milk, Soft drinks and plastic goods have all gone up in price.....but less people can buy them than ever before

Automobiles that save our environment cost 30% more than others....how can we expect to live life without houses, food or clean air?

Answer 1

When the government decided to suck so much money out of the economy that they needed to print worthless money to keep the economy afloat.

Answer 2

we are to greedy, and demand ever higher wages.

Answer 3

Tough times every economy on earth has to allow for Inflation unless you want Wage and Price controls which don't work very well and just create shortages and a black market,the economy is cyclical and hopefully the bottom isn't too much deeper

Answer 4

Because people had more money through their homes value, and inflation only effects those that have money not those without it!

Answer 5

Perhaps people will have to make choices rather than thinking that they have to have everything.  Computers, internet, cell phones, and cable tv are not necessities.  A car isn't a necessity for most people especially those in cities.  People don't have to have soft drinks or bottled water.  They can drink tap water.  Most packaging is for convenience and appearance.  Perhaps people will need to buy in bulk and package their own goods in reusable containers.  Houses have gotten to be much bigger than people need.  Look around at the number of people that have 3,4 or 5 bedroom houses for two or three people.  And why does everyone in the house need their own bathroom.  Smaller houses would be more affordable.  

People complain about the prices of things going up and talk of a depression because they can't afford all the luxuries.  A depression happens when most people don't have any luxuries and have trouble affording necessities.  

Answer 6

The US Federal reserve: Ben Bernanke and his troupe of idiots + his predecessors.

Answer 7

You getting a bit mixed up here. Air is not paid for at the moment, and just because there is some inflation does not mean people cannot afford to buy these things. It just means that they are dearer that's all

Answer 8

In general, there is always going to be inflationary pressure on a capitalist economy. If goods and services are scarce, the price goes up ... and it gets passed along.

However, that's the economy as a whole. Price can and frequently do come down in specific industries and products. Innovation and mass production can produce great savings.

Best example I can think of -- the calculator. I received one in 1972 for Christmas. It added, substracted, multiplied and divided. The cost: $100. Now, you can get one at the Dollar Store.