Inflation

I remember sitting in an Econ class in colllege and the professor saying why inflation was a good thing and one of the main points was that people would rather see wages prices increase than wages decrease.

One thing I realized was that people that had fixed incomes like retirees or those with very low incomes would be punished by inflation over time, as their income brought diminished purchasing power. As I have done a lot of reading over the last couple of years, I finally found a book that serves as a good starting point.

I just finished How an Economy Grows and Why It Crashes by Peter Schiff and I think it is a great introduction to how the US economy has changed over time and all of the problems caused by government.

My wife read it, learned a lot and even enjoyed it. I have tried to talk to her about these types of things before, but I think this example using the fish as money made it very easy to understand. 

Updated : The reason I got inspired to do this post was the quote "Inflation is simply a means to transfer wealth from anyone who has savings in a particular currency to anyone who has debts in the same currency."

Bankers and government can spend other peoples money and have the public take the losses. Not a bad deal.