Inflation good or bad, illusion or real, and how is it measured?

a percentage of these ideas are really old ideas,

the ideas are still here in case something can be done with it ...

Inflation: what would be the algebraic economic equation that would represent inflation??? can it be condensed into a small equation? or would it be millions of pages long to represent all the people in the world and there algebraic economic lifestyles? could one person, like an economics professor put it together, or would it take something like Microsoft and it's thousands ( ? ) of workers to put it together like they do for a Microsoft office program?

Causes

A definition I found

There are different schools of thought as to what causes inflation. Most can be divided into two broad areas:

quality theories of inflation,

and quantity theories of inflation.

Many theories of inflation combine the two.

The quality theory of inflation rests on the expectation of a buyer accepting currency to be able to exchange that currency at a later time for goods that are desirable as a buyer.

The quantity theory of inflation rests on the equation of the money supply, its velocity, and exchanges. Adam Smith and David Hume proposed a quantity theory of inflation for money, and a quality theory of inflation for production.

anyone truly understands what this stuff means?

one hundred families algebraically economically work together

each family makes one hundred of something that, that family wants and the other hundred families wants ... they trade, so each family has one hundred different things they need in the end ...

some things algebraically economically cannot be completed at the some time because of the algebraic economic laws of physics, so the families come up with a contract in which they use IOU notes when things are completed and given, if an IOU note equals a paper dollar bill then you may understand what money is and what it means in different countries ??? ...

if one hundred families algebraically economically working together equals = an whole economic family ( I don't know what it would be called )

what happens when a whole economic family trades with another whole economic family??? and what would the algebraic economic math problem look like???

what happens when a whole economic family in the US trades with another whole economic family in another country??? and what would the algebraic economic math problem look like???

when the US citizens give money to another country for a product, service or property, does the citizens or government in the other country purchase products from the US ( which puts people to work here and the other country takes a renewable or unrenewable product from the US ), services in the US ( which gives the other country's citizens what they need to live and / or takes secrets that risk national security ) , purchase US land / property ( which the the other country can choose to help the US citizens or choose to help the other country ) everything appears to have a catch 22, ( US citizens live if you do and die if you do, US citizens die if you don't and live if you don't ) ??? I get the feeling that many civilizations have tried to explain what happens, with god and the devil stories real or not???, good and evil stories real or not??? , good magic and bad magic ??? , Indians and the harmony of the lands ??? stories by the camp fire??? fairy tales??? , the legal systems ??? , what happened with the Irish and the potatoes??? , what happened with the great depression ???

an algebraic economic equation seems to unfolding??? the more we can all ( including other countries ) trust each other with out getting hurt, the more solutions we find, the longer we and our children live, the more we can live in harmony??? it appears ( if the history of the bible is correct ), we can and have in the past, reach(ed) the life span of about 900 hundred years old???... compared to eternity, 30 years old in the old west to 70 years old now, to a possible 900 years old in the future is still extremely short period of time??? we have reached hundreds of years of history of record keeping but of course how many algebraic economic books are missing??? the bible says millions and millions of books in the bible are missing, but not lost??? ...

John 21

Bible in Basic English

25 And Jesus did such a number of other things that, if every one was recorded, it is my opinion that even the world itself is not great enough for the books there would be.

what happens with an algebraic economic dead end project??? does the family economy come to an end???

what happens with an algebraic economic open end project and how many more jobs would it create???

1	one family	makes	10	kitchen tables
2	one family	makes	10	sets of chairs
3	one family	makes	10	Book shelves
4	one family	makes	10	couches
5	one family	makes	10	file cabinets
6	one family	makes	10	coffee tables
7	one family	makes	10	beds
8	one family	makes	10	dressers
9	one family	makes	10	desks
10	one family	makes	10	food cabinets

they all agree to take there stuff and put it in a warehouse

the warehouse makes one hundred IOU notes

each family receives 10 IOU notes

each family is allowed to go back and trade an IOU note for a product

so they will be able to get 10 products

because there is apparent laws of physics

there must be an advantage and a disadvantage

to this system,

what are they?

what do they mean to you?

the way I understand it, one kind of inflation

would be

you would get two IOU notes for each product

which equals 20 IOU notes instead of 10 IOU notes

assuming the 1 IOU note equals one dollar

simple algebra says that 1 dollar buys one product

and later in time 2 dollars buys one product

they are both the same, it looks like inflation but it isn't

am I right?

ok, now lets look at another event

the families have families

so now we have 20 families instead of 10

1	one family	makes	10	kitchen tables	1	one family	makes	10	kitchen tables

2	one family	makes	10	sets of chairs	2	one family	makes	10	sets of chairs

3	one family	makes	10	Book shelves	3	one family	makes	10	Book shelves

4	one family	makes	10	couches	4	one family	makes	10	couches

5	one family	makes	10	file cabinets	5	one family	makes	10	file cabinets

6	one family	makes	10	coffee tables	6	one family	makes	10	coffee tables

7	one family	makes	10	beds	7	one family	makes	10	beds

8	one family	makes	10	dressers	8	one family	makes	10	dressers

9	one family	makes	10	desks	9	one family	makes	10	desks

10	one family	makes	10	food cabinets	10	one family	makes	10	food cabinets

ok each family still gets 10 IOU notes

each family is still able to get 10 products

there is 10 IOU notes times 20 families

equals 200 IOU notes made by the warehouse

instead of 100 IOU notes

some people I have talked to said that

that is inflation, but it isn't is it

it just looks that way

they say the government printed more money and inflated

the market, but they didn't did they, the economy just grew

am I right?

to keep it simple lets go back in history to 10 families

1	one family	makes	10	kitchen tables
2	one family	makes	10	sets of chairs
3	one family	makes	10	Book shelves
4	one family	makes	10	couches
5	one family	makes	10	file cabinets
6	one family	makes		coffee tables
7	one family	makes		beds
8	one family	makes		dressers
9	one family	makes		desks
10	one family	makes		food cabinets

each family still gets 10 IOU notes

government takes 5 IOU notes from 5 families

that are working

and gives it to 5 families that are not working

each family can go back and get 5 of what ever

they want, assuming there is enough for everyone?

demand raises the cost of products?

the warehouse raises the price of the products by 2

now a product costs 2 IOU notes and your family

got paid 1 IOU note per product

instead of the original agreement

you now only get 2 products for 5 IOU notes instead of 5

yea you have one IOU note left over to keep for the next

time your family gets paid 5 IOU notes

for producing 10 products which will make 6 IOU notes

so now you can get 3 products

some people call that inflation,

what do you call that?

there could be a lot of possible reasons for this to happen:

maybe the families got ill and need a doctor

maybe the families got injured while making products

maybe the families have no wood to work ( help the other families ) with

maybe the families have been told they are not

legally allowed to work ( help the other families )

maybe some group socially programmed the families

into believing they are not suppose to work ( help the other families )

what do you call all of that?

to keep it simple,

now lets go a little farther in the future and we have 15 families

1	one family	makes	15	kitchen tables
2	one family	makes	15	sets of chairs
3	one family	makes	15	Book shelves
4	one family	makes	15	couches
5	one family	makes	15	file cabinets
6	one family	makes	15	hours of doctor visits
7	one family	makes	15	hours of safety education
8	one family	makes	15	hours of psychology visits
9	one family	makes	15	hours of attorney visits
10	one family	makes	15	hours of tree finders, planters, etc.
11	one family	makes	15	coffee tables
12	one family	makes	15	beds
13	one family	makes	15	dressers
14	one family	makes	15	desks
15	one family	makes	15	food cabinets

now each family gets 15 IOU notes from the warehouse

each family is able to go back and get 15 of what ever they want

15 IOU notes times 15 families equals 225 IOU notes

is that inflation, because the government made

more money, no that is not inflation, the economy grew,

am I right?

now there is nothing to do but look at your stuff

and talk to each other, ever been there done that?

1	one family	makes	20	kitchen tables
2	one family	makes	20	sets of chairs
3	one family	makes	20	Book shelves
4	one family	makes	20	couches
5	one family	makes	20	file cabinets
6	one family	makes	20	hours of doctor visits
7	one family	makes	20	hours of safety education
8	one family	makes	20	hours of psychology visits
9	one family	makes	20	hours of attorney visits
10	one family	makes	20	hours of tree finders, planters, etc.
11	one family	makes	20	coffee tables
12	one family	makes	20	beds
13	one family	makes	20	dressers
14	one family	makes	20	desks
15	one family	makes	20	food cabinets
16	one family	makes	20	hours of entertainment, movies
17	one family	makes	20	hours of entertainment, plays
18	one family	makes	20	hours of entertainment, shows
19	one family	makes	20	hours of entertainment, baseball games
20	one family	makes	20	hours of entertainment, football games

each family gets 20 IOU notes

that is 20 families times 20 IOU notes

equals 400 IOU notes total

is that inflation, because the government made

more money, no that is not inflation, the economy grew,

am I right?

we haven't even talked about food yet

1	one family	makes	25	kitchen tables
2	one family	makes	25	sets of chairs
3	one family	makes	25	Book shelves
4	one family	makes	25	couches
5	one family	makes	25	file cabinets
6	one family	makes	25	hours of doctor visits
7	one family	makes	25	hours of safety education
8	one family	makes	25	hours of psychology visits
9	one family	makes	25	hours of attorney visits
10	one family	makes	25	hours of tree finders, planters, etc.
11	one family	makes	25	coffee tables
12	one family	makes	25	beds
13	one family	makes	25	dressers
14	one family	makes	25	desks
15	one family	makes	25	food cabinets
16	one family	makes	25	hours of entertainment, movies
17	one family	makes	25	hours of entertainment, plays
18	one family	makes	25	hours of entertainment, shows
19	one family	makes	25	hours of entertainment, baseball games
20	one family	makes	25	hours of entertainment, football games
21	one family	makes	25	Servings of apples enough for a family
22	one family	makes	25	Servings of bananas enough for a family
23	one family	makes	25	Servings of oranges enough for a family
24	one family	makes	25	Servings of strawberries enough for a family
25	one family	makes	25	Servings of lettuce enough for a family

each family gets 25 IOU notes

that is 25 families times 25 IOU notes

equals 625 IOU notes total

is that inflation, because the government made

more money, no that is not inflation, the economy grew,

am I right?

now look at some more problems that can happen

1	one family	makes	20	kitchen tables
2	one family	makes	20	sets of chairs
3	one family	makes	20	Book shelves
4	one family	makes	20	couches
5	one family	makes	20	file cabinets
6	one family	makes	20	hours of doctor visits
7	one family	makes	20	hours of safety education
8	one family	makes	20	hours of psychology visits
9	one family	makes	20	hours of attorney visits
10	one family	makes	20	hours of tree finders, planters, etc.
11	one family	makes	20	coffee tables
12	one family	makes	20	beds
13	one family	makes	20	dressers
14	one family	makes	20	desks
15	one family	makes	20	food cabinets
16	one family	makes	20	hours of entertainment, movies
17	one family	makes	20	hours of entertainment, plays
18	one family	makes	20	hours of entertainment, shows
19	one family	makes	20	hours of entertainment, baseball games
20	one family	makes	20	hours of entertainment, football games
21	one family	makes	20	Servings of apples enough for a family
22	one family	makes	20	Servings of bananas enough for a family
23	one family	makes	20	Servings of oranges enough for a family
24	one family	makes	20	Servings of strawberries enough for a family
25	one family	makes	20	Servings of lettuce enough for a family

now your family gets 20 IOU notes instead of 25

the first thing the social worker says is

your family needs to cut back on entertainment

so your family can get the things they need

instead of the things you want

1	one family	makes	20	kitchen tables
2	one family	makes	20	sets of chairs
3	one family	makes	20	Book shelves
4	one family	makes	20	couches
5	one family	makes	20	file cabinets
6	one family	makes	20	hours of doctor visits
7	one family	makes	20	hours of safety education
8	one family	makes	20	hours of psychology visits
9	one family	makes	20	hours of attorney visits
10	one family	makes	20	hours of tree finders, planters, etc.
11	one family	makes	20	coffee tables
12	one family	makes	20	beds
13	one family	makes	20	dressers
14	one family	makes	20	desks
15	one family	makes	20	food cabinets
16	one family	makes		hours of entertainment, movies
17	one family	makes		hours of entertainment, plays
18	one family	makes		hours of entertainment, shows
19	one family	makes		hours of entertainment, baseball games
20	one family	makes		hours of entertainment, football games
21	one family	makes	20	Servings of apples enough for a family
22	one family	makes	20	Servings of bananas enough for a family
23	one family	makes	20	Servings of oranges enough for a family
24	one family	makes	20	Servings of strawberries enough for a family
25	one family	makes	20	Servings of lettuce enough for a family

then the social worker says

we need to share the wealth

because we cannot let people suffer

		IOU notes available divided by families

1	one family	makes	20	kitchen tables	and gets paid	16	IOU notes
2	one family	makes	20	sets of chairs	and gets paid	16	IOU notes
3	one family	makes	20	Book shelves	and gets paid	16	IOU notes
4	one family	makes	20	couches	and gets paid	16	IOU notes
5	one family	makes	20	file cabinets	and gets paid	16	IOU notes
6	one family	makes	20	hours of doctor visits	and gets paid	16	IOU notes
7	one family	makes	20	hours of safety education	and gets paid	16	IOU notes
8	one family	makes	20	hours of psychology visits	and gets paid	16	IOU notes
9	one family	makes	20	hours of attorney visits	and gets paid	16	IOU notes
10	one family	makes	20	hours of tree finders, planters, etc.	and gets paid	16	IOU notes
11	one family	makes	20	coffee tables	and gets paid	16	IOU notes
12	one family	makes	20	beds	and gets paid	16	IOU notes
13	one family	makes	20	dressers	and gets paid	16	IOU notes
14	one family	makes	20	desks	and gets paid	16	IOU notes
15	one family	makes	20	food cabinets	and gets paid	16	IOU notes
16	one family	makes		hours of entertainment, movies	and gets paid	16	IOU notes
17	one family	makes		hours of entertainment, plays	and gets paid	16	IOU notes
18	one family	makes		hours of entertainment, shows	and gets paid	16	IOU notes
19	one family	makes		hours of entertainment, baseball games	and gets paid	16	IOU notes
20	one family	makes		hours of entertainment, football games	and gets paid	16	IOU notes
21	one family	makes	20	Servings of apples enough for a family	and gets paid	16	IOU notes
22	one family	makes	20	Servings of bananas enough for a family	and gets paid	16	IOU notes
23	one family	makes	20	Servings of oranges enough for a family	and gets paid	16	IOU notes
24	one family	makes	20	Servings of strawberries enough for a family	and gets paid	16	IOU notes
25	one family	makes	20	Servings of lettuce enough for a family	and gets paid	16	IOU notes

			400	IOU notes total

				divided by 25 families equals	16	IOU notes for each family

now your family gets paid 16 IOU notes instead of 25

now there is even more things the social worker says

you are suppose to do with out so your family can make it

		IOU notes available divided by families

1	one family	makes	16	kitchen tables	and gets paid	12.8	IOU notes
2	one family	makes	16	sets of chairs	and gets paid	12.8	IOU notes
3	one family	makes	16	Book shelves	and gets paid	12.8	IOU notes
4	one family	makes	16	couches	and gets paid	12.8	IOU notes
5	one family	makes	16	file cabinets	and gets paid	12.8	IOU notes
6	one family	makes	16	hours of doctor visits	and gets paid	12.8	IOU notes
7	one family	makes	16	hours of safety education	and gets paid	12.8	IOU notes
8	one family	makes	16	hours of psychology visits	and gets paid	12.8	IOU notes
9	one family	makes	16	hours of attorney visits	and gets paid	12.8	IOU notes
10	one family	makes	16	hours of tree finders, planters, etc.	and gets paid	12.8	IOU notes
11	one family	makes	16	coffee tables	and gets paid	12.8	IOU notes
12	one family	makes	16	beds	and gets paid	12.8	IOU notes
13	one family	makes	16	dressers	and gets paid	12.8	IOU notes
14	one family	makes	16	desks	and gets paid	12.8	IOU notes
15	one family	makes	16	food cabinets	and gets paid	12.8	IOU notes
16	one family	makes		hours of entertainment, movies	and gets paid	12.8	IOU notes
17	one family	makes		hours of entertainment, plays	and gets paid	12.8	IOU notes
18	one family	makes		hours of entertainment, shows	and gets paid	12.8	IOU notes
19	one family	makes		hours of entertainment, baseball games	and gets paid	12.8	IOU notes
20	one family	makes		hours of entertainment, football games	and gets paid	12.8	IOU notes
21	one family	makes	16	Servings of apples enough for a family	and gets paid	12.8	IOU notes
22	one family	makes	16	Servings of bananas enough for a family	and gets paid	12.8	IOU notes
23	one family	makes	16	Servings of oranges enough for a family	and gets paid	12.8	IOU notes
24	one family	makes	16	Servings of strawberries enough for a family	and gets paid	12.8	IOU notes
25	one family	makes	16	Servings of lettuce enough for a family	and gets paid	12.8	IOU notes

			320	IOU notes total

				divided by 25 families equals	12.8	IOU notes for each family

now your family gets paid 12.8 IOU notes instead of 25

now there is even more things the social worker says

you are suppose to do with out so your family can make it

		IOU notes available divided by families

1	one family	makes	12.8	kitchen tables	and gets paid	10.4	IOU notes
2	one family	makes	12.8	sets of chairs	and gets paid	10.4	IOU notes
3	one family	makes	12.8	Book shelves	and gets paid	10.4	IOU notes
4	one family	makes	12.8	couches	and gets paid	10.4	IOU notes
5	one family	makes	12.8	file cabinets	and gets paid	10.4	IOU notes
6	one family	makes	12.8	hours of doctor visits	and gets paid	10.4	IOU notes
7	one family	makes	12.8	hours of safety education	and gets paid	10.4	IOU notes
8	one family	makes	12.8	hours of psychology visits	and gets paid	10.4	IOU notes
9	one family	makes	12.8	hours of attorney visits	and gets paid	10.4	IOU notes
10	one family	makes	12.8	hours of tree finders, planters, etc.	and gets paid	10.4	IOU notes
11	one family	makes	12.8	coffee tables	and gets paid	10.4	IOU notes
12	one family	makes	12.8	beds	and gets paid	10.4	IOU notes
13	one family	makes	12.8	dressers	and gets paid	10.4	IOU notes
14	one family	makes	12.8	desks	and gets paid	10.4	IOU notes
15	one family	makes	12.8	food cabinets	and gets paid	10.4	IOU notes
16	one family	makes		hours of entertainment, movies	and gets paid	10.4	IOU notes
17	one family	makes		hours of entertainment, plays	and gets paid	10.4	IOU notes
18	one family	makes		hours of entertainment, shows	and gets paid	10.4	IOU notes
19	one family	makes		hours of entertainment, baseball games	and gets paid	10.4	IOU notes
20	one family	makes		hours of entertainment, football games	and gets paid	10.4	IOU notes
21	one family	makes	12.8	Servings of apples enough for a family	and gets paid	10.4	IOU notes
22	one family	makes	12.8	Servings of bananas enough for a family	and gets paid	10.4	IOU notes
23	one family	makes	12.8	Servings of oranges enough for a family	and gets paid	10.4	IOU notes
24	one family	makes	12.8	Servings of strawberries enough for a family	and gets paid	10.4	IOU notes
25	one family	makes	12.8	Servings of lettuce enough for a family	and gets paid	10.4	IOU notes

			256	IOU notes total

				divided by 25 families equals	10.24	IOU notes for each family

now your family gets paid 10.24 IOU notes instead of 25

now there is even more things the social worker says

you are suppose to do with out so your family can make it

		IOU notes available divided by families

1	one family	makes	10.4	kitchen tables	and gets paid	8.32	IOU notes
2	one family	makes	10.4	sets of chairs	and gets paid	8.32	IOU notes
3	one family	makes	10.4	Book shelves	and gets paid	8.32	IOU notes
4	one family	makes	10.4	couches	and gets paid	8.32	IOU notes
5	one family	makes	10.4	file cabinets	and gets paid	8.32	IOU notes
6	one family	makes	10.4	hours of doctor visits	and gets paid	8.32	IOU notes
7	one family	makes	10.4	hours of safety education	and gets paid	8.32	IOU notes
8	one family	makes	10.4	hours of psychology visits	and gets paid	8.32	IOU notes
9	one family	makes	10.4	hours of attorney visits	and gets paid	8.32	IOU notes
10	one family	makes	10.4	hours of tree finders, planters, etc.	and gets paid	8.32	IOU notes
11	one family	makes	10.4	coffee tables	and gets paid	8.32	IOU notes
12	one family	makes	10.4	beds	and gets paid	8.32	IOU notes
13	one family	makes	10.4	dressers	and gets paid	8.32	IOU notes
14	one family	makes	10.4	desks	and gets paid	8.32	IOU notes
15	one family	makes	10.4	food cabinets	and gets paid	8.32	IOU notes
16	one family	makes		hours of entertainment, movies	and gets paid	8.32	IOU notes
17	one family	makes		hours of entertainment, plays	and gets paid	8.32	IOU notes
18	one family	makes		hours of entertainment, shows	and gets paid	8.32	IOU notes
19	one family	makes		hours of entertainment, baseball games	and gets paid	8.32	IOU notes
20	one family	makes		hours of entertainment, football games	and gets paid	8.32	IOU notes
21	one family	makes	10.4	Servings of apples enough for a family	and gets paid	8.32	IOU notes
22	one family	makes	10.4	Servings of bananas enough for a family	and gets paid	8.32	IOU notes
23	one family	makes	10.4	Servings of oranges enough for a family	and gets paid	8.32	IOU notes
24	one family	makes	10.4	Servings of strawberries enough for a family	and gets paid	8.32	IOU notes
25	one family	makes	10.4	Servings of lettuce enough for a family	and gets paid	8.32	IOU notes

			208	IOU notes total

				divided by 25 families equals	8.32	IOU notes for each family

so the economy spirals down, am I right or am I wrong?

if the government makes 625 IOU notes

so each family once again gets paid

25 IOU notes with out the work being done

what do you call that? that is probably true inflation

am I right?

the people believe they have 25 dollars but

because the value of the dollar fell,

because the work it not being done

to represent the true value of the note

the algebra catches up with them and

they still only have

8.32 dollars per family

I feel it is important to make life the most important thing

and it is important for everyone to have what they need

but I do have a different view on how to do that

instead of dragging everyone down

find ways to improve the economy so we do not need to economically

drag everyone down

what do I believe the best way to do that is

right now I believe economics education is the best solution

at least until the algebra catches up with it

then it will most likely be something else we need to learn about

which will most likely be another form of education

so if you encourage the social workers to go through

true economics education on many levels, that would probably

be a good start, especially, since most of them that I asked

if you had one idea to improve the economy, what would it be?

had no idea at all, except take from the rich and give to the poor

which makes everyone poor

if we are going to take from the rich in the form of taxes

and give to the poor

and we use that money to improve the economy

then everyone would be richer

and if we started colleges that were economically self sufficient

because they had much better economics classes

the amount of taxes taken from everyone would be even less

there is a lot of economic things I did not talk about here

so do not let this be your soul judgment on what do to next

it is just something to think about ...

play economic games

make things out of paper to represent things in the economy

get families together and play with the math

try to figure out what problems are in the economy

there is real results, if you can get them

then try to figure out what the algebraic economic math is

it probably includes algebra, logic, linier, calculus,

real variables, emotional variables, and a whole mess

of other kinds of math

that's why true economics is not easy to pin down and explain

??? the possible pay off, when you get paid, and they say you

can only expect to get paid what you are worth

you are probably worth a whole lot more

than they understand ...

but none of that matters, if the other people

and you do not understand economics ???

there is a bid difference between wishing

you knew how to do something

and truly understanding it ...

http://www.mageniemagic.com/