Is Inflation Immoral? : Inflation? Essays

1033 Words Oct 16th, 2015 null Page
Is inflation immoral?
Inflation occurs when the price of ordinary goods go up and people can no longer buy the things they need with the same amount of money. The compounded effects of even small percentage points of inflation is that over time wages haven’t kept up with inflation and the buying power of consumers has decreased. For example, my husband and I purchased a life insurance policy back in the 1980’s for $100,000 thinking it would take care of the family in the event of our death. Back in the 80’s, $100,000 was a lot of money but it would not go very far today. In addition, “inflation wipes out the savings of the government and people,” and the effects of inflation are so subtle that most people do not even realize what is happening (Skarica, 2010). Most of us are caught up in the day to day struggle to make ends meet, and although there is a sense that we are losing ground, we can never quite pinpoint why we are not getting ahead. Those who are opposed to inflation contend that there is not enough transparency by the Federal Reserve (United States: Fed Will Stave Off Threats to Autonomy, 2012) and some feel like it is a vehicle politicians use to get around the problem of directly taxing constituents, referring to it as a hidden tax.
A hundred years ago the United States operated on the gold standard but today we have fiat money. The problem with fiat money is that it loses value over time and thus fails and important requirement of money, which is to serve…

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