What is Inflation

The basics of what price inflation is and how the CPI-U is calculated

Category:

Education

Tags:

• inflation
• consumer
• price
• index
• cpi
• finance
• economics

[mdadnan]

Sal if you are watching can I suggest to put a number in the video title before and after? Usually you have just the title like "What is Inflation" I download all videos but once downloaded they are not in sequence(see the algebra videos they are numbered in end). Obviously you made in a sequence but I have no clue which one should I watch first(in the finance section). Another related issue I cannot find a missed video in the finance section, alphabetically ordered once missed difficult to find

[josepharchbold]

Khan you could and should teach everything ever!

[nerfmyaccount]

@U2HereY remember the point of a currency isn't to maintain wealth distribution, but price stability. My share of the wealth should shrink if i'm doing nothing but sitting on a currency, but the amount of goods I could have bought with the currency when I earned it should not go down over time - that is price preservation NOT value preservation. Gold standard is poor to terribly at achieving this and never has (it has always been tied with credit money of some sort)

[nerfmyaccount]

@U2HereY Because the supply of gold is mostly stable gold tends to be deflationary. Imagine a small model economy in which you own 1 gold bar, this bar exchanges for 1/5th of all the goods and services in this economy. Imagine someone works their butt off and makes a new product, they have increased the goods, but the amount of gold is the same - you can still exchange for 1/5th the goods, so you you can buy this product at 4/5ths its surplus value. this lowers incentive to invest or produce.

[mrfoodarama]

Aren't Food and Energy (fuel) Excluded from the governments Inflation Numbers (CPI)?

Shouldn't these two categories Alone be the Most Important part of the CPI?

Why would the government exclude these fundamental necessities of Everyday Life?

[mrhnm]

@U2HereY Gold and silver keep their values despite inflation. If you want to save your money go down to your local shop and buy gold and silver.

The FED is a banking cartel that was created to rob people. When they print money they are taking value directly from your wallet.

[U2HereY]

Questions, why did we move away from elemental metal "money", ie. Gold, Silver etc, to paper currency? Paper currency can be forged, elements can't be. Does the world need more "money" that there are elements in the world? Paper of course can be easily reproduced (for circulation). Would be interesting to see a comprehensive historical/economical discussion on paper currency and metal currency.Especially with how gold and other metals affect regional and world economies. Any videos address that?

[U2HereY]

I agree with the post below @mdadnan. I don't know which order I should watch them in. Please prefix with a number or something to indicate the order.

[generationalist]

@VERGIS92 what research? You still failed to site your source. Telling me that it is based on some obsolete data mining err. meta analysis means --- absolutely nothing.

[VERGIS92]

@generationalist that 7% is a figure based on a research done in the UK years ago, the people interviewed were either paying rent, or paying off a mortgage (the biggest expense), then spending on all other things. If they left their money in cash, it would lose 7% of its buying power in a year! that's

7% inflation.

For people who live on rent, it can be even higher, since rent increases alone can hardly be absorbed.

[hyylo]

@josepharchbold

I'm still waiting for Mr Khan to teach English

[hyylo]

@generationalist

what are you talking about? i said gold is money. the dollar is not money.

the dollar is paper with ink on it.

people like you try to make economics complicated.

i think you need to read real economics such as Austrian Economics.

Stop reading the government books on economics from government schools and colleges.