Inflation Cartoon

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Inflation Cartoon

• By the pin pals
• Justin Fritzius
• Chris Weddle
• Josh Owens
• Jessica Long

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Source http//www.ding-darling.org/cartoons/house
wife.html
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What is inflation?

• General increase in the price level and decrease
  of the purchasing power of a unit of money over
  time (http//www.carleton.ca/ssridhar/9138020Note
  s2010.PDF)

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Source http//qrc.depaul.edu/djabon/cpi.htm
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Causes of inflation?

• Increases in products costs that are pushed onto
  the consumer
• Cost push inflation
• Excessive spending power of consumers
• Demand pull inflation
• International forces
• Too much money for not enough goods
• Inflation psychology which causes consumers to
  buy ahead

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Consequences of inflation

• Decline in standard of living
• Decline in confidence in economy
• Decline in purchasing power for consumers in the
  market
• Decline in investments and savings

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The Cartoon

• Depicts the effects of inflation and the
  consequences of inflation as they apply to
  consumers.

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Source http//www.financialsense.com/editorials/w
allenwein/2004/0320.html
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Percentage price increases since 1962
The purchasing power decreased

• Item Percentage Increase in Price
• Hershey bar 1180
• New York Times 1100
• First class postage 700
• Gasoline (gallon) 284
• Hamburger (McDonald's double) 861
• Chevrolet (full size) 790
• Refrigerator freezer 60

Source http//qrc.depaul.edu/djabon/cpi.htm