How inflation affect your financial future
This article talks about inflation and prices in the
next 30 years. It sounds pretty scary to me, to be honest. I’d never thought
that prices could go up that high in the next 30 years. Assuming that inflation
occurs in the next 30 year, many people will suffer. Prices would be so high,
but will our incomes keep up with inflation? Retirees would be the ones who
suffer the most from inflation, because they have fixed income. Now, we can import goods from countries at a
lower cost because our money’s value greater than some of the countries; for
instance, Vietnam speaking in term of currency. Our economy would be hurt if we
have to import goods at a much high cost because the value of our money is
getting lower. There could be some day that many countries would stop exporting
goods to the U.S. because of inflation. While inflation increases 500 or 600
percent at a time, our incomes only increase by a few percent. There’s no
guarantee that we can keep up with inflation. On the other hand, we can’t be
sure if inflation will occur.
With rising inflation, the cost of living adjustment is going to become increasingly more important. People need that adjustment, or they will be progressively making less and less. I do think that we will be able to control our inflation, and that it won't be that big of an issue in the coming years.
ReplyDeleteWithout going into a completely different topic, I believe that the unsettling rise in inflation and cost of living is a perfectly good reason to raise wages. If inflation continues to rise, the cost of living will rise as well, all while people are making the same amount of money or just a bit more. Americans already work longer and more often than any other country, so increasing hours is no option. Inflation needs to be curbed, before these effects take place.
ReplyDeleteI feel like the trend that is shown in the article is somewhat skewed in that the income of an average person will rise by that percent as well. If we look back at the prices of items our parents or grandparents bought its just as shocking of a change. I'm not too worried about the inflation rate and I really don't think that it will get to the levels the blog predicts.
ReplyDeleteInflation rising should mean that wages and everything else should adjust or somewhat adjust to make sure living with the inflation is possible. However you brought up a really good point about the retirees, they're always hurt by inflation because they do have a fixed income.
ReplyDeleteAs was already said, unless something spectacularly awful happens, I'm not too worried about the inflation of our dollar. I'm sure that wages will be able to keep up as well. Let's just hope that we keep the rate under control enough for us to stay competitive on an international level..
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