Madison Webster, Chapter 10, Q 2/6

The quote that Wheelan stated that struck me the most was "The most instructive way to think about inflation is not that prices are going up, but rather that the purchasing power of the dollar is going down".

This affects my every day life in the sense that I use money regularly. My family uses money to buy food, clothes, necessities, wants, bills, taxes, etc. I obviously want to get the most for the money I spend. Wheelan talks about the value of money, he says it is worthless. All it is is paper! However, there needs to be a common unit of trade in order to compare the value of different items for purchase. This is weird to me because a $100 bill seems to be worth so much yet it is worth so little. I would convey that inflation is a scary things. You could be a middle class member at one point and be poor the next. In some countries, the value of the dollar changes everyday!! This is incredible to me. 

Going back to the quote I mentioned up top, Wheelan makes an excellent point. Since the dollar has such little value, it isn't important to think about the prices of items according to money, but rather how much you can buy for a dollar. A dollar buys less than it used to. You used to be able to see a movie for 19 cents and now it is $10! "A paper value only has value because it is scare"... I would also argue that it has value because it is the unit of trade amongst our nation.