Chapter 10 Q-2

Overall chapter 10 blew my mind. It's complexities are so deep that it's no wonder why we struggle every year with this same concept of inflation. In chapter 10 Wheelan mentions a lot about how inflation can really impact my life. The biggest impact of inflation on my life is how it hurts my "buying power." As inflation increases the value of each dollar decreases making it less powerful. This simply effects everything. Now I worry about retirement. When I'm older and want to save for retirement, as I save inflation causes that savings to be worth less and now I have to put more money in because the cost of goods and services will also increase with inflation. Wow, this really could screw some people over and it has and will continue to. Inflation can also help people interestingly. If someone is in debt and owes someone a lot of money then unexpected inflation occurs, what you owe them is less now and isn't as bad anymore hurting the person needing to be paid back but also benefiting the debtor. I used to always ponder about inflation as a kid without knowing what it actually is. I would say "let's just make a bunch of money and all get rich!" I think this thought might cross a lot of kids minds but soon they'll learn from Mr. Hoffner of Minnehaha Academy how deeply inflation effects ones life.