This past week of class, I have been learning more about inflation. It's actually quite interesting learning about how if you make too much money it can affect the whole economy of a country. For instance, I have watched this video about the Venezuela's inflation in 2018. They made so much dollar bills that it soon became practically worthless. It had gone to the point where they made arts and crafts out of it! While there is some humor in people doing that to money, it's also sad. For example, their society in that country started to resort to bartering because they were unable to pay for food at their grocery stores.
While Venezuela's government is still paying for their actions today, it can serve as a reminder to be careful with the increase of money as it can cause deflation if it occurs. For instance, America already learned this lesson when the stock market crashed in 1929. That took a huge toll in our country at the time and we lost a lot of money. This is why there needs to be a balance in the economy and when the government needs to know when to stop. Causing inflation can ruin the economic system as well as people's lives. Source: https://www.youtube.com/watch?app=desktop&v=SCz1x5-tgig
I agree! It was humor and yet disheartening at the same time. I also agree that this should serve as an example to not only the United States but to other nations on what not to do in their economy. I wonder what the trajectory the United States is on and if it will lead to inflation such as it did it Venezuela. Hopefully, our economy will will remember history so that it may not repeat itself.
I completely agree that when governments like Venezuela or Germany try to solve their financial problems by putting money into the economy instead of paying their debts legitimately, it ends of hurting more people then it helps.