Trying to explain inflation to friends…

Hey Reddit Fam…

I'm trying to explain inflation and its simplest terms to friends on my Facebook page but before I post I want to make sure that the following statement is accurate and true….


If you live in a neighborhood that has 10 houses, and each neighbor posesses $1,000 then you can say each neighbor owns 10% of the total $10,000 money supply.

Now, if the HOA of said neighborhood prints $10,000 of new (stimulus) money, and gives each of the 10x neighbors a $500 (stimulus check), each neighbor now has $1,500 and the HOA possess $5,000…

Which means the HOA posesses $5,000 OR %25 of the total $20,000 money supply…and each neighbor now has $1,500 or only a %7.5 share of the total money supply.


Please comment with any edits I need to make or even suggestions to better explain to friends and family.

submitted by /u/TucciSwagoo
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