Inflation the biggest problem of the modern era.

[Youngrebel]

I don't agree.
There are ways to escape inflation, even if you  make your money with a bread and butter job you can not escape it.
Only if you don't become active you are victim to outer circunstancies..


Correction from can to can not

I think the first statement also needs to be adjusted to There are no ways* because it doesn't match what you mean in the entire context of what you said. But you have a point, escaping inflation is impossible, you can only cope with it . In a country where there's an inflation the only thing that can be done is trying to survive because this is something that is going to affect both the rich and the poor as well but it affects those that are poor more than those that are rich.

[tabas]

I’d also like to ask this question: Should we fight inflation? I’m talking about controlled inflation, not runaway inflation.
For example, there’s a classic view on controlled, low-level inflation-it encourages people to buy and invest more actively, which is good for the economy. If money sits at home "under the mattress", it won’t be circulating in the economy.
Or, to put it in scientific terms: "Moderate inflation stimulates economic growth, whereas deflation stifles business activity and increases the real value of debt".
I won’t insist that this is the most accurate statement, but there is logic to it.
 

This is what most of the central banks pushes. I think that cash is king during the inflation and don't touch that money that's not moving. You'll have no idea how it means a lot when you're able to have it and prepared on uncertain times. They'll change the interest rates and they'll want people to borrow money to adjust with the inflation. But spending it if it's not intended for investment and you've just forced to do it, I don't think that's a good decision.

[Hamza2424]

Inflation destroys everything. Living 3-5% anual inflation is easy, and that is not the problem. The problem are higher inflation rates over decades.

I grew up in country with 80-100% inflation per month. That is crazy, and economy is destroyed. Nobody knows how much anything costs, sometimes a person gets a good job and it becomes bad quite quickly and might become good again.

Same, bro. We have also lost almost half the value of our currency in the last 5 years. I still remember when $100 was 15k in local currency, and now it is around 30k. Inflation has made things worse. While inflation has increased by 2x, the salaries of employees have only increased by 10% to 15% at most. The lower class is suffering. They are grateful if they get to eat good food sometimes because they have been left in a situation where they can't think about anything else but how to survive in this economy without breaking the law.

Because not everyone is a criminal.

Economies are destroyed mostly because of disasters. The pandemic had the highest impact on our country, and so far we are still dealing with it.

[sunsilk]

I want to ask a question here and although I feel the question might be off from the current discussion but I just can't seem to wrap my head around the whole inflation issue and why it's has eaten up the whole entire society structure.

1. Why do we think all these inflations happen.
2. From the onset is it not the whole set up of the economic that warrants the chances and cases of inflation?
3. If there is a proven means to actually counter the inflation like any example from any nation in the whole why is it not been replicated.
4. The government are the true cause of this right? Because they also have the power to make sure things don't get hyper inflated but I feel there are also in benefits, please correct if am wrong because it's so absurd when you have all the power to set things straight but yet fall to do so.

Due to the cost of production and the suppliers are the ones who creates that and as well as the policies of the government.

As for the counter for inflation. It's nothing that's been hidden, in fact many are aware of the ways to counter inflation. But it's just so happen that it's another way of putting ourselves into more work and to earn more so that we can invest more.

It's a proven strategy to deal with inflation and perfect hedge to have more assets that can appreciate over the period of time.

[Crypto_Timothy]

Yup, Inflation is definitely one of the biggest challenges people face today because it affects the cost of food, housing and other basic needs, making daily life more difficult for millions people. But then however, I don't think it stands alone as the single greatest problem, since issues like war, corruption and fraud often contribute to inflation or make its effects even worse, so.like fixing the monetary system may help, but lasting solutions also require stronger institutions and policies that improve economic stability.

[stadus]

I would say survival is the biggest challenge of the modern era due to the non-stop inflation that is affecting our daily lives. If you have no reliable source of income, you will surely experience the peak of everything, having to struggle financially everyday just to cope up with the high-priced basic needs of your family.

Inflation is the biggest problem and the threat for survival indeed. But what we fail to see about it is that people push to be hard-working and not picky of the jobs just to survive in this high-expensive and challenging world.

[programmer3666]

Modern society is characterized by so many problems, which has helped shaped society and the way it lived. Looking at the modern society that we find ourselves there is the problem of religious extremist which pose the problem of threat to societal peace and safety, yet if am to judge that is not the greatest problem of this modern era. There is also the problem of fraud, which has ever been seen at least not at this present scale which has caused a lot of economic impact on the world economy. Yet I will not say that fraud is actually the biggest problem of the modern society we find ourselves.

There is also the threat of war, which is also a big problem to global peace, with threat of nuclear weapons almost on daily basis, yet I will not even say that that is the biggest problem of the modern era. Inflation remains the biggest problem of this modern era, I have come to the conclusion that, the biggest problem man kind is faced is actually inflation. It's a monetary problem, until the world government fixes our money mankind is in a very serious problem.

Everyday mankind is faced with a serious problem and that is survival, with the world economy that we find ourselves today the cost of living is increasing every single day.This has even impacted on the way human used to live , when compared with previous generations. If the world monetary system is not fixed am afraid to say that mankind is at a cross road of survival. Just like the evolutionists will say that the world will only be for only the strongest and the weak will die off.

Inflation does not just make things expensive, it changes how people live. Families that used to eat three meals a day now skip one. People who could afford school fees suddenly can't. It's a slow killer that affects everyone, rich or poor. It's not just about money losing value, it's about losing security and peace of mind. War and fraud are bad, but inflation hits you every single day, whether you like it or not. Until governments get serious about fixing the economy, ordinary people will keep suffering.

[X-ray]

Inflation is deliberate mechanism embedded into our economy for government to control spending.

Without inflation you'd spend your money less and the economy will be stagnating or at the very least become slower than usual.

Your biggest problem isn't inflation but not being able to invest. By converting your money to gold or bitcoin you've eliminated inflation from your financial risk.

But the real question is, can you set aside some money to invest? that's the real question.

You can't solve a problem if it wasn't a problem in the first place.

[DanWalker]

Yup, Inflation is definitely one of the biggest challenges people face today because it affects the cost of food, housing and other basic needs, making daily life more difficult for millions people. But then however, I don't think it stands alone as the single greatest problem, since issues like war, corruption and fraud often contribute to inflation or make its effects even worse, so.like fixing the monetary system may help, but lasting solutions also require stronger institutions and policies that improve economic stability.

Of course, inflation is not the only major problem we are facing, but its certainly one of the most concerning. It affect almost everyone, persist over time and continuously erodes our purchasing power.

You are right that better economic policies are needed, but I do not think they address the root of the problem. As long as central banks can expand the money supply at will, inflation will continue to exist.

[uchegod-21]

So how do we escape inflation caused by natural disasters, pandemic, war and other factors beyond our control. Factors beyond our control cause reduction in supply. Ofcourse you should know that once there is a reduction in supply, the price of goods and services will go high.

As long as man exist, there will always be inflation. We cannot escape it, but can control the inflation rate. Hardwork and government policies cannot solve inflation problems.

Inflation is not a problem. Inactivity towards its effects is the problem.
You cannot escape natural or even desastre not natural. You can have values everywhere you can open accounts, have a wallets,     

Opening accounts and keeping your bitcoins in your wallet can only preserve the value of your assets and your purchasing power for as long as your assets are stored there. It does not prevent the prices of goods and services from going up, especially if the inflation is caused by factors beyond our control. You will still buy commodities at outrageous prices because of shortages in supply.

Like I said before, you cannot avoid or escape it. The only thing you can do is prepare for it. Investing in Bitcoin and having multiple sources of income are some of the ways you can prepare for inflation so you can still live comfortably even when the cost of living is very high.

What you call escaping inflation is simply a way of equipping yourself financially. If inflation wasn't a problem, we wouldn't spend so much time trying to improve our standard of living.

[tygeade]

It's not as easy as you say. When you live in a country where inflation is higher, you'll find everything so difficult - even if you earn more money, it still won't keep up with the inflation, so in the end, what you earn will never be enough. Not to mention, when inflation is higher, many companies will take breaks or even stop operations completely, which will cause layoffs everywhere and make it harder for people to find work and earn more income. If you're lucky, maybe you can get freelance online work to supplement your income, but for most people, it's just a struggle.

I agree. Some people just talk about inflation and fighting against it so casually as if it's not a problem at all, but those who go through the hardships when the economic situations of a country are at their worst state only they will understand how difficult it can be to actually make enough money to fight against inflation.

First of all, companies in such countries would barely pay their employees enough that could cover all their expenses, there is also no check and balance about this thing, the minimum salary for employees might be fixed but companies still exploit their workforce and also don't pay them up to the payscale that they deserve and should get.

As you mentioned, so many people nowadays are trying to have some side work online, maybe freelancing or something else, but then again, it's not everyone's cup of tea to actually start and maintain a successful career in an online industry.

You might start, and get a few clients, but that doesn't mean you will keep having the same response all the time because there is so much competition in these marketplaces, there are way more sellers than buyers on Fiverr and other platforms, which means that if a buyer is looking for a web developer, they will have thousands of choices to choose from, and they only go with the ones at the top.

[AgriTrack]

I would say survival is the biggest challenge of the modern era due to the non-stop inflation that is affecting our daily lives. If you have no reliable source of income, you will surely experience the peak of everything, having to struggle financially everyday just to cope up with the high-priced basic needs of your family.

Inflation is the biggest problem and the threat for survival indeed. But what we fail to see about it is that people push to be hard-working and not picky of the jobs just to survive in this high-expensive and challenging world.

Inflation is the biggest problem of today's times, as our necessities of life such as rice, flour, vegetables, etc. are becoming expensive. It becomes difficult for the common people to meet their expenses because they have to buy things that are important. Inflation not only affects people's lives, but also has a negative impact on their future plans. Nowadays, there are many people whose income is fixed. Due to the increase in inflation, their income remains the same. So such people have to face difficulties. Such people cannot even buy things of their own free will or live their lives in peace and comfort. If inflation continues to increase like this, it can lead to unrest and poverty in the society, which is not right. They should provide relief to the people.

[Royal Cap]

Inflation is the biggest problem of today's times, as our necessities of life such as rice, flour, vegetables, etc. are becoming expensive. It becomes difficult for the common people to meet their expenses because they have to buy things that are important. Inflation not only affects people's lives, but also has a negative impact on their future plans. Nowadays, there are many people whose income is fixed. Due to the increase in inflation, their income remains the same. So such people have to face difficulties. Such people cannot even buy things of their own free will or live their lives in peace and comfort. If inflation continues to increase like this, it can lead to unrest and poverty in the society, which is not right. They should provide relief to the people.

Relief is definitely necessary, but it is not a long term solution. If prices continue to rise in the market in the same way then after a few months people will face the same problem again.  So relying only on relief will leave the main problem. Rather I think more emphasis needs to be placed on market management and controlling the causes of inflation. Many economists also say that not only relief, but also effective policies to fix the supply system and reduce inflation will bring more benefits to the people.

[slapper]

It's not as easy as you say. When you live in a country where inflation is higher, you'll find everything so difficult - even if you earn more money, it still won't keep up with the inflation, so in the end, what you earn will never be enough. Not to mention, when inflation is higher, many companies will take breaks or even stop operations completely, which will cause layoffs everywhere and make it harder for people to find work and earn more income. If you're lucky, maybe you can get freelance online work to supplement your income, but for most people, it's just a struggle.

I agree. Some people just talk about inflation and fighting against it so casually as if it's not a problem at all, but those who go through the hardships when the economic situations of a country are at their worst state only they will understand how difficult it can be to actually make enough money to fight against inflation.

First of all, companies in such countries would barely pay their employees enough that could cover all their expenses, there is also no check and balance about this thing, the minimum salary for employees might be fixed but companies still exploit their workforce and also don't pay them up to the payscale that they deserve and should get.

As you mentioned, so many people nowadays are trying to have some side work online, maybe freelancing or something else, but then again, it's not everyone's cup of tea to actually start and maintain a successful career in an online industry.

You might start, and get a few clients, but that doesn't mean you will keep having the same response all the time because there is so much competition in these marketplaces, there are way more sellers than buyers on Fiverr and other platforms, which means that if a buyer is looking for a web developer, they will have thousands of choices to choose from, and they only go with the ones at the top.

You register with Fiverr. You price yourself competitively. Still, the client you are going to be working with does not care about your individual situation. They are simply ranking by the lowest price and highest reviews.

This is not a market. I mean technically it is. This platform however took the advantages and left the workers to fight each other for ever slimmer margins. And Fiverr will take their cut whether or not you made enough money to make the time worth it.

There is too little return on your local economy because of inflation. Therefore you go online. Now you have to compete with someone around the world with a lower cost of living. They can price even lower which means you either match them and starve differently or you do not match them and get no work at all.

[Emitdama]

Yup, Inflation is definitely one of the biggest challenges people face today because it affects the cost of food, housing and other basic needs, making daily life more difficult for millions people. But then however, I don't think it stands alone as the single greatest problem, since issues like war, corruption and fraud often contribute to inflation or make its effects even worse, so.like fixing the monetary system may help, but lasting solutions also require stronger institutions and policies that improve economic stability.

I think other problems can be managed if the economy of a country is good in general, because you mentioned how war can affect the economy or inflation, but I think if there is no corruption in a country and the economy is doing good, in times of war, the government can manage things properly, because it will only be difficult for the citizens if the government puts all the burden on them in times of war, by increasing the prices of goods that are being imported by saying that they have to pay more money for it due to war, which is why people will have to pay more money or taxes for it, but this is all because of corruption, they don't increase only enough to cover the expenses, they increase more so that they can also get a share.

Corruption in a country is the biggest reason for the rising inflation, because as I mentioned above, they collect so much money in taxes from people, but instead of using that money for the well-being of the country, they put most of it in their own pockets and only use a small portion for the development work, and because of this, the economy keeps getting worse. They increase taxes to get more money for themselves, and in return, the companies producing goods increase the prices because they also have to make enough money to be able to pay their taxes.

[icebar]

When a war starts, inflation increases due to that war, but even after the war ends, inflation does not decrease. Although the increase in the rate of inflation is a common thing in the present day, it has the most negative impact on people's lives. When inflation occurs, it shrinks the scope of people's work. The working wheel of the economy slows down, and people start losing their jobs. As poverty increases due to inflation, at the same time the income gap between the rich and the poor increases. The possibility of new business growth also decreases. Not only the economic pressure but also the negative impact on the social and human aspects of people is seen.

With the occurrence of inflation, anxiety usually increases among people, which also affects the family. And when unrest is created within the family, it spreads everywhere. It affects all sectors of education, health. Inflation increases social unrest, which creates insecure or worse situation for the common people.

[Unknown Op]

What I realized is that inflation is part of a growing economy. So expect that inflation will stay for good.

However, despite how negative the impact inflation is, still there are means not to totally eradicate it but at least to minimize getting affected with inflation. You can increase your source of income through getting a side hustle, create investment like gold and bitcoin that can hedge against inflation, or simply invest in your backyard. Grow natural foods in order to save from food expenses.

There are many families who are struggling with the increasing amount of inflation they are working multiple jobs just to cover up their basic needs and it is not possible for them to invest in Golden Bitcoin or to grow their own food as they do not have been left with extra time or money and similarly investing in Bitcoin is very volatile and risky's involved it might protect against inflation for the long period of time in certain cases but also can lose significant value in short period of time that is not suitable for the people who cannot afford financial risk and already struggling inflation is not based on any once individual efforts all the government and banks are also responsible to maintain the prices of the commodities table and in couraging economic growth.

[DrBeer]

I’d also like to ask this question: Should we fight inflation? I’m talking about controlled inflation, not runaway inflation.
 

Nope we should not, we should look how to get over it.
A way where the inflation is not a problem, you make 15 000 and the inflation gets 20% you laugh
 
You make 1.500 and 20% have more weight. 
 
You make 150 and 20% and you cry.

Just to clarify-20% inflation is A LOT! 2%, 3%, or 5% is exactly what I was talking about, but 20% inflation is a major problem that makes it very difficult to run a business and sustain the economy...
But we can also discuss deflation! Things aren’t exactly rosy there either, for both the general public and businesses.

[WillyAp]

Just to clarify-20% inflation is A LOT! 2%, 3%, or 5% is exactly what I was talking about, but 20% inflation is a major problem that makes it very difficult to run a business and sustain the economy...

O yes it is.
:
Africa: Inflation rates: https://tradingeconomics.com/country-list/inflation-rate?continent=africa
Latin America: Inflation rates: https://www.theglobaleconomy.com/rankings/inflation/Latin-Am/
Asia is the winner: https://tradingeconomics.com/country-list/inflation-rate?continent=asia

Ranking from 83% Iran, to below 1 in  those countries
Senegal   0.4   %  Central African Republic 0.4% Morocco 0.3%, Togo 0.1%,  Burkina Faso -0.4%, Benin -0.4%,   Guinea Bissau -1.2%, Niger -4.8% and the Chad -3.7%

[DrBeer]

I’d also like to ask this question: Should we fight inflation? I’m talking about controlled inflation, not runaway inflation.
For example, there’s a classic view on controlled, low-level inflation-it encourages people to buy and invest more actively, which is good for the economy. If money sits at home "under the mattress", it won’t be circulating in the economy.
Or, to put it in scientific terms: "Moderate inflation stimulates economic growth, whereas deflation stifles business activity and increases the real value of debt".
I won’t insist that this is the most accurate statement, but there is logic to it.

There is no scientific evidence that that is any true, it is one of the main theories that they have pushed across to the mainstream academics of economics. There is no validity in the claim, and it is actually possible that we would be better of with inflation that is very close to zero or even deflation. There are no good arguments against deflation, they usually make up something exaggerated like comparing runaway deflation to normal inflation which does not make sense. It is like using hyperinflation as an example why deflation is better than inflation. When big interests join together to push a theory like this into the mainstream, it is not usually because it is true. Just look how many years they have called Bitcoin a scam, some like in the European Union are still doing it. Was it true, is it true? Similar stuff happens with economics theories, you won't even get published in the best journals if you bring a paper that destroys the inflation arguments. Anything above 1% inflation is too much.

Okay, I agree! But could you please provide logical arguments and scientific economic models that account for deflation? I’ll go out on a limb and ask-can you provide that?
Another question: examples of countries with a deflationary financial system, along with an analysis of their economies, would be very illuminating from the perspective of a reasoned dialogue and a rational debate!

Or, if this is purely your own theory, please share your perspective and assessment of a deflationary economy-I’d be really interested to hear it! Thanks in advance for your response on this truly VERY interesting topic.