Quote:
Originally Posted by fielderLS3
The cause of inflation is deficit spending and printing/creation of money out of thin air by central banks. Inflation by definition is an increase in the money supply. The value of money operates on the same supply and demand principle as the value of anything else. If the supply of money increases faster than the total available quantity of goods and services it is being used to purchase, its value goes down and prices increase.
Rising prices are not inflation, they are merely a symptom of inflation. The "cost" (i.e. value) of goods and services isn't going up, the value of the currency being traded for them is simply going down.
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I'm aware of this. I was explaining how minimum wage laws caused rising prices, which leads to inflation. However, the value I'm using is money, and not some subjective view of value that some may define it as.