The Definition of InflationSubmitted by zooamerica on Fri, 05/04/2012 - 22:56
"Too many dollars chasing too few goods and services."
Why do prices continue to rise? Why did a gallon of milk used to cost five cents and now it costs $4 or more?
How do we solve the inflation problem of too many dollars chasing too few goods and services?
Create more goods and services...
An economy needs to manufacture enough goods and services in order to keep up with the dollar demand.
We have the "goods," but lack the services (jobs) to create more goods....
The problem with America's economy right now is quite simple. We can not produce enough goods and services to satisfy demand. As a small businessman, I can relate....I can not grow my business. I can not produce enough product to meet demand because I am unable to hire more employees. Shelling out over $5,000 in taxes every 3 months to Uncle Sugarbucks doesn't help.
If I could keep what I earn through my labor, I could expand business and hire more people. I would not have to raise prices just to thin the herd of demand. We can only do so much, and it gets to a point where you MUST raise prices just to prevent yourself from being overwhelmed by demand. I had to cut my hours, because I was getting burnt out from the pace of business. Good problem for me, bad problem for America.
How do we solve the inflation problem? Create more goods and services...how does an American small business create more goods and services? Get rid of the IRS, abolish the Fed, and terminate the Income Tax.