This week 7 episode was about “Inflation and Bubbles and Tulips” and how these things affect us in our daily lives. Inflation is when people have a lot of money and bid off for things also known as Demand Pull inflation, another cause of inflation is when producers raising prices and producing less because of an increase in production cost.The global rise in home prices the biggest bubble in history when each person is betting that they can sell at a higher price but you run out of buyers and this causes the Bubble to burst. Tulips in the 1630s were such a fad that people were willing to pay big prices for them such as selling 12 acres of land.
A rise in prices is merely the same as a cut in taxes. We are constantly having to adjust for inflation
A rise in prices is merely the same as a cut in taxes. We are constantly having to adjust for inflation