Social and Psychological Effects of Inflation with ValueMags
Currently, ValueMags, a magazine marketing company for magazine publishers, is seeking magazines that are catchy reads for business men: a market ValueMags feels they are neglecting. There are many subjects that the company would like this ideal magazine to touch on such as the psychological and social effect of how one’s money is handled and distributed. A current effect on individual’s lives includes how valuable their money is one day verse how valuable it is the next. High inflation reflects a volatile economy. In that volatile economy, money does not hold it’s value for as long as it did the previous day and so one… The cost of goods and services is constantly expected to rise too says ValueMags researchers. In 1914 for example, the nickel was worth more than the USD today with current value. Thus, small businesses are suffering because they have higher costs to cover (resulting in layoffs with cut backs in production), local businesses are going bankrupt and so are Americans. Luckily, ValueMags is successful enough to keep floating compared to other drowning businesses.
In the same way, citizens on fixed incomes (individuals on pensions) are hit badly by inflation and deflation. Individuals that are well off are more likely not to be affected by high inflation because they can invest in real estate and the market that increase in value during spikes in inflation. For those that only get a 2% raise every year to match inflation, they will never be able to catch up to the rich. This misfortune leads to certain individuals being well-off and certain companies being very successful. As a result, a very large gap is created between the wealth and the poor, frustrating the lower class whom the government refers to as the middle class. The reality is that there is no middle class in North American explains the ValueMags research team.
The innovative magazine marketing company encourages the government to realistically address the gap between rich and poor in America by bringing back jobs and transforming the system towards a more equal equilibrium (not manipulated) in relation to the distribution of wealth.