6 things you should know about inflation
1.The dollar of today
A dollar from 1950 is now worth only $0.12
2. Where does the term "inflation" come from and what does it mean?
The term “inflation” is from the Latin term inflare, meaning to “blow up or inflate,” and it was first used in a monetary sense to describe “an increase in the amount of money” in 1838.
3. Inflation back then vs modern day
The movie Cleopatra cost $44 million to make in 1963. With inflation taken into account, the same movie would cost $300 million to make today
3. How it affects world history.
Hyperinflation occurred in Germany in 1920, leading to great social unrest. The purchasing power of money fell so low that the German currency, the Mark, became cheaper than firewood. Hitler blamed the Jews for spiraling inflation, which helped pave the way for the Holocaust.
4. Studies of effects
Historians cite runaway inflation as a major cause of ancient Rome’s fall.
5. inflation effects our wants and needs
The dollar has lost 21% of its purchasing power in the last decade.
6. Inflations effect on supplies
The first country to hyperinflate in the 21st century is Zimbabwe. In 2008, a loaf of bread cost 1.6 trillion Zimbabwe dollars. Officials in Zimbabwe blamed it on rising global food prices and international sanctions.