INFLATION, Explained in 60 Seconds

Here’s why everything is getting more expensive.

For a more detailed 6-minute explanation, watch this video:


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Comment (48)

  1. So… do you feel rich? This inflation is probably caused by lack of competition, not an oversupply of money. When there's a lack of competition, the Village Market raises prices and everyone has to pay because no one is allowed to open a competing village market with lower prices.

  2. Oh sure – inflation is the store owner's fault, not the giant pile of cash the government just handed out. That is inflation. The minute they did that all the dollars that were out there were less valuable than they were before.

  3. That's demand induced inflation. What we see now however, is that the supply is cut short through COVID, war, China, supply change etc. which limits the amount on the market and things get sold out without too much money in the system. You can fix this by resolving the supply problems, not by changing interest rates. Those may only push back the problem and give time for fixing the supply, but they also lead to recession. So, there is that as well…

  4. You expect me to look at that beard and you eating doritos with a chopstick and not call you a conspiracy theorists like your points may make sense but come on those chopsticks and domino's are telling me something else

  5. Nah, he’s not like β€œI should raise prices” his wholesaler ha also run out of stuff so they compete with the other store owners by paying premiums and this means they sell for that but extra because they are buying for that hit extra and THAT is inflation.

  6. LOL. The only problem is, the villagers in your allegory used the money they got from "the giant pile of cash" the government gave to pay bills, rents, debts, etc. and buy necessities, NOT fancy electric bikes and other luxury items. Furthermore, the "extra money" aren't even that much; it's close to bread crumbs.

  7. Totally wrong the seller raises prices because money became less valuable as someone just printed it. Not because he’s running out of stock.
    In an economy run by fiat currency inflation is basically an invisible way of robbing people by whomever is in control of printing money.

  8. This visual make inflation more dangerous then what it looks like.
    If this happens to you please buy and own a store or buy and sell houses. And inflation would be less dangerous.

  9. I feel like this isnt entirely describing inflation. Its describing supply and demand.

    Money has the same value but stores charge more because they can without worrying that people will not purchase items.

    Inflation is when the money itself has less value due to a hypothetical greater pool of circulating money. Stores and suppliers charge more because buyers are generally believed to have more purchasing power.

    Im sure both happening simultaneously is a thing.

    Could be wrong. Thats just what i always think of.

  10. That’s one way to get inflation. Another is for corporations to claim that they are raising prices due to increased costs while in reality they are increasing prices well-beyond their increased costs to pump up profits to record levels. Like what’s happening now.


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