Inflation
Summit
Learn about a crazy little thing called inflation.
When prices go up over time, it’s called inflation.
And inflation tends to go up faster when most people
are working and earning money. That’s because
when people have jobs and money, they’re usually
willing to pay more for the items that they want to
buy. And the more people earn, the higher prices tend
to rise.
Think about it this way: The more money you have, the
less you’ll worry about spending some of it. If
you have only $10, a ride in a hot air balloon might
not be worth $5, or half your life’s savings.
But if you have $100, you might be willing to pay $5
for a ride. And when prices rise, businesses charge
more for their goods and services to maintain a profit.
