Inflation Explained in One Minute

A one-minute video explanation of inflation. No matter what it is you currently do for a living, at the very least knowing a thing or two about inflation is a must.

Otherwise, you risk losing purchasing power without even realizing why and most importantly, without being in a good position to figure out what to do about it.

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[OneMinuteEconomics]

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[DonaldMark-nese]

I'm not kidding when I say that the market crash and high inflation have me really stressed out and worried about retirement. I've been in the red for a while now and although people say these crisis has it perks, I'm losing my mind but I get it Investing is a long-term game, so focus on the long run.

[HodgeChris]

I see the rising interest rate as a very big problem, as more investors will definitely pull out more money from the Stock market. This might have worked when I was still invest-ing with a couple thousand dollars, but it is more difficult now to decide whether to pull out more than $365k from my port-folio. I know some inves-tors still make that despite the strong bear market. In wish I could pull that feat

[steveclarke]

This doesn't explain Inflation. It explains the effects of inflation on wages.

[GoldIRA]

Cash will only lose value because of inflation so its better to protect your investment by doing the right option. You see, lots of people nowadays choose gold to protect them from such catastrophe. The gold market has the record of staying high for a long period of time. Be it any country of the world, the gold markets touches the peak and continues to stay there for a long period of time which is why people consider it to be the best way of preserving their wealth.

[lukey]

Ok so basically the government makes more money and the more money the less valuable it becomes and everything gets more expensive

[AGamerPS]

It always comes down to the first thing I learned in economics. Supply and demand.

[AdiJuttofficial]

i just didn't get that, i want to know properly what INFLATION actually is?

[ToTheNines]

The most common type of inflation is demand pull inflation, which we are seeing a lot of right now. I don’t think this video did particularly well explaining inflation.

[lucasgarcez]

This video does not explain what is inflation, he talk about a effect of inflation: The lost of purchasing power.

[maharlikanstvchannel]

Awesome video clips, thanks for sharing.

[andreastw]

"Then I heard what sounded like a voice among the four living creatures, saying, “Two pounds of wheat for a day’s wages, and six pounds of barley for a day’s wages, and do not damage the oil and the wine!” - Inflation 😂

[killerbee]

How do you calculate how much a currency lost its value?

[stevenarturodeleondelacruz]

I have 15 and I'm studying economics and it looks fun! I hope one day i can be a economist and do analyzings and decisions!

[NetProfitPath]

Very Educational. I would recommend this video for educational purposes!

[coolstuffbrazil]

That's true when govermment prints money. However this is impact is not direct because people don't spend all money earned in goods, they save part of it, and inflation could be little bit less. I prefer austiacs economy school explanation.

[econevery]

For those looking for an explanation of inflation, you should be more confused about what inflation is then before you got here.

Let me see if I can help.

Inflation is when the demand for goods and services exceeds the supply of them.

Basically, when things run short (become scarce) assuming demand for them remains about the same, the price will increase.

However, creating money does not _cause_ inflation.

Think about it like this. If the demand for Cheetos rises by 10%, does Frito Lay increase the price, or create more Cheetos? Hopefully, you realize that they will just increase output. But if you think they would raise the price, imagine going to the store and seeing the prices of snack chips right around $3.50, but Cheetos are $4. Which one would you buy?

Most people would swap to something else, meaning that Cheetos will find their sales and market share decrease and their competition will increase.

So when would prices rise?

That depends.

What caused the shortage?

Let's say that demand has stayed roughly the same, but the supply of raw materials needed to make snack chips increase. Maybe a drought cut the supply of potatoes, corn and wheat. This would cause disruption in the supply chain and costs would rise.

The other kind is much less common kind of inflation is called demand pull. This supply stays about the same and there is a sudden unforeseen demand and as a result, supply runs short.
I say it's much less common because if snack companies are able to predict future increases in demand, they will overproduce and create inventories.

Think about Christmas, if it was true that increase demand causes prices to rise, why is everything on sale on Christmas a time when about 20-30% of all sales happen?

Even in cases where demand outstrips supply and prices rise, those increases usually lead to increased incentives to supply the industry that's running short.

Case in point. Oil/ Gas prices. Froma bout 2005-2013 gas prices were elevated. That incentivized new energy opportunities and as a result of that increase in demand North America is not the oil capital of the world.

In the end, just as a glass can be 1/2 full or 1/2 empty, inflation can usually be looked at more than one way. It's important that you see and understand the whole picture before making judgments.

[vickieheard]

Great videos! Question: Could I put these on my Facebook page for my real estate business? (of course, credit going to you!)

[chuckf]

You got a video on modern monetary theory? I'd be down to see a video explaining MMT.

[Imotbro]

This video looks painfully similar to "OHOOOHHOHOOHOHHOHOHOOH CAILOU, HOW DARE YOU SNEAK INTO CHUCK'S AND CHEESE, THAT'S IT, YOU ARE GROUNDED GROUNDED GROUNDED GROUNDED GROUNDED GROUNDED GROUNDED FOR 63467845868867346784367 YEARS, GO TO YOUR ROOM NOW!"