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Thank you We sneak and here's your shmoop du jour

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brought to you by inflation which is the reason that

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cost of balloons keep going up not to mention the

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balloons themselves Alright What's inflation and hear potential answers All

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right This is inflation and this is inflation And this

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is inflation Well not sure what it is Okay specifically

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it is a rate at which the prices on goods

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and services increase Usually yes but on an annualized basis

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Well this holiday season when your grandmama's ask her what

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she paid for her house This one the one she

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bought fifty two years ago The one with the bathroom

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door knob that it always falls off Yet she bought

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it for eight grand about what you pay now for

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a six year old prius The house would sell today

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for three hundred grand Why That part of town suddenly

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get more valuable No not at all It's the same

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It increased in value at the same rate as inflation

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So it's real value is about the same as it

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was back Lynn fifty two years ago An average worker

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made a thousand bucks a year Today that same average

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Worker makes thirty seven point five grand a year And

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guess what The home back then sold for eight times

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the average worker's salary And well guess what Today it

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sells for eight times the average worker's salary Right back

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to the answer Inflation is an increase in prices not

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just a change So is out See really foreign currency

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How about asking if it refers to the sound loose

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skywalker's lightsaber makes when he turns on the power random

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All right d increased purchasing power No the opposite If

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you have lots of inflation a dollar goes less far

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than it used to Remember that wheelbarrow full of german

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marks right there their currency back then before the euro

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it used to take one of those paper bills to

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buy a loaf of bread and inflation struck and well

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you know start eating stagflation No it's Not about breeding

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kentucky derby winners Stagflation refers to a specific element of

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inflation where prices go up But employment does not And

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yeah it's a bad thing unlike the breeding scenario Okay

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so that's it The answer is b increase in prices

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we dread the day that balloons will eventually cost twenty 00:02:21.603 --> [endTime] Bucks Each that's really gonna burst our bubble

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