Changes

In economics, '''inflation''' is a general rise in the price of [[goods]] and services in relation to purchasing power.  Inflation is not caused by [[global warming]] or any natural phenomena. Inflation is caused directly by the people whom voters elect to office.  It is intended to rob workers of their wealth and to discourage savings, investment, and [[capital]] accumulation.  Inflation creates panic buying, as workers spend their paychecks quickly before their money loses any more value.  Inflation is a hallmark of [[Socialism]].

In economics, '''inflation''' is a general rise in the price of [[goods]] and services in relation to purchasing power.  Inflation is not caused by [[global warming]] or any natural phenomena. Inflation is caused directly by the people whom voters elect to office.  It is intended to rob workers of their wealth and to discourage savings, investment, and [[capital]] accumulation.  Inflation creates panic buying, as workers spend their paychecks quickly before their money loses any more value.  Inflation is a hallmark of [[Socialism]].

Prices tend to go up when demand from consumers exceeds the normal capacity of producers to supply goods and services. An [[supply and demand|excess supply of goods and services]] tends to put downward pressure on prices.

High inflation undermines the [[economy]]'s ability to generate long-lasting growth and job creation.  High inflation erodes the value of incomes and savings. People on fixed incomes, including the elderly and poor are particularly vulnerable to inflation. [[Social Security]] payments are adjusted to inflation months or years after the fact and typically when inflation accelerates to higher levels.  

The common measure for consumers formerly was the [[Consumer Price Index]] (CPI). [[Economist]]s prefer a broader measure, the "implicit GDP deflator", which includes the prices of non-consumer items like highways and factories.

 

The common measure for consumers is the [[Consumer Price Index]] (CPI). [[Economist]]s prefer a broader measure, the "implicit GDP deflator", which includes the prices of non-consumer items like highways and factories.

In the [[U.S.]], the inflation rate was near zero in 2009, and very low for the subsequent decade.  

In the [[U.S.]], the inflation rate was near zero in 2009, and very low for the subsequent decade.