Inflation and Absolute Power Essay

Inflation and Absolute Power Essay

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Throughout the years the government has gained complete control over money and its development. The government wanted control because it believes that it is easier to acquire monetary assets if they have the control over all money and, at the same time, eliminate the middle-man of trade. With the ever growing population the government came up with a way to counterfeit money to keep up with the demand of money. This counterfeiting of money created inflation.
Inflation happens when there is more and more money being created, this lessens the value of each individual dollar. Inflation also lowers the standard of living because people decide to buy now and pay later, this also creates higher inflation. Inflation causes the business cycle to take place. The business cycle is when the economy is at a peak, then experiences a contraction (recession), then goes through a trough (lowest point). Once the economy has passed its trough stage, its goes through its recovery stage (going back up to its original peak) and then keeps expanding, creating a new peak. Then the cycle starts all over. ...

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