Inflation Explained

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What is inflation? To really understand inflation, you need to know what money is and why we use it. Money represents the value of hard work and producing things that other people want to use. The measurement of this production or hard work is done with units of money. If I spend $20 to buy a can opener, that $20 represents an hour of work serving food at a restaurant as an example. You can see this by looking at a job that pays wages by the hour, and then taking those wages and buying things that you do not produce to obtain all of the things that you need to live. The backbone of this idea is exchanging and trading goods, because making everything you need by yourself may not be possible.

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