inflation
...recipe. A liberal dash of budget deficits, plus a pinch of president and congressional politics, will help supply excessive money. Then you finish off with whatever unexpected nasty seasoning comes to hand, such as oil price increases ("Inflation's Ingredients" 42). Inflation affects everyone; however, some individuals or groups far better than others do. Debtors, stockholders, and business firms are among those likely to benefit by inflation. On the other hand, creditors and savers, retired people, the poor, and people on fixed incomes are those apt to be hurt most by inflation. If this is the case, should not certain groups be in favor of inflation? Not necessarily, as Poindexter explains: "Most individuals are both creditors and debtors. The real value of the wealth they hold in the form of dollar claims is eroded as prices rise" (Macroeconomics 351). It should be noted, however, that economists do not always agree on the reasons for nor the effects on inflation. In recent years, as Parker has noted, overall inflation has h...