How is inflation created, and why does it endure?
While we consume goods daily, the accounting value we assign to goods endures forever. This phenomenon is greatly effected by the profit margins used. Let’s use an apple as an example. The farmer picks the apple for free, and sells it to a wholesaler for five cents. The wholesaler then sells it to a distributor for ten cents. The distributor sells it to the supermarket for twenty cents. The supermarket sells it to the canteen truck for forty cents. The canteen truck sells it to you for eighty cents. Everyone has made 100% profit, but the consumer has an eighty cents apple. For him to be able to pay eighty cents, he has to profit eighty cents selling another good of his to somebody else. Now let’s pick the same apple, and use different math, 50% instead of 100%. A farmer picks an apple for free and sells it to the wholesaler for one cent. The wholesaler sells it to a distributor for 1.5 cents. The wholesaler sells it to the supermarket for 2.25 cents. The supermarket sells it to the can
