| Comment | If people can’t buy things - it would result in a recession. As the economy would stagnate or regress. Inflation is high or rise in these instances - but in these cases - measures to address inflation result in continuing unemployment.
If the a guy is selling apples and he sells 10 apples per week. He will die as that’s not enough money. But if he has to pay people to sell them and turns a profit of 5 apples. He needs 5 apples to pay his rent, replenish stock & support his family in general.
Now the cost of living rises… he has to pay his workers an extra 2 apples. He’s now only got 3 apples left. But he needs 5. What does he do? Increases the cost of apples… so he continues to have 5 apples. Now his workers need to pay more for the apples - but they got a wage increase. That’s inflation with wage rises… |
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