1
00:00:00,030 --> 00:00:02,879
let's assume your monthly income were to

2
00:00:02,879 --> 00:00:06,029
somehow double congratulations you can

3
00:00:06,029 --> 00:00:07,859
now for the most part afford to buy two

4
00:00:07,859 --> 00:00:10,710
times more stuff but what if the monthly

5
00:00:10,710 --> 00:00:12,960
income of everyone else were to also

6
00:00:12,960 --> 00:00:15,660
double well in that case you'd no longer

7
00:00:15,660 --> 00:00:17,580
be able to buy two times more stuff

8
00:00:17,580 --> 00:00:19,949
because since everyone else also earns

9
00:00:19,949 --> 00:00:22,199
two times more there would be two times

10
00:00:22,199 --> 00:00:24,060
more money chasing roughly the same

11
00:00:24,060 --> 00:00:26,640
number of goods let's take things one

12
00:00:26,640 --> 00:00:29,220
step further what if your income doubles

13
00:00:29,220 --> 00:00:31,199
but the income of everyone else triples

14
00:00:31,199 --> 00:00:33,600
in that case you'd actually become

15
00:00:33,600 --> 00:00:37,020
poorer why because making two times more

16
00:00:37,020 --> 00:00:39,300
money is not enough to keep up with

17
00:00:39,300 --> 00:00:41,370
everyone else who now makes three times

18
00:00:41,370 --> 00:00:44,340
more if there's an overall increase in

19
00:00:44,340 --> 00:00:46,500
the price of goods and services of X

20
00:00:46,500 --> 00:00:47,550
percent this year

21
00:00:47,550 --> 00:00:49,860
you have to earn at least X percent more

22
00:00:49,860 --> 00:00:50,760
than last year

23
00:00:50,760 --> 00:00:53,719
to avoid becoming poorer in real terms

24
00:00:53,719 --> 00:00:56,000
history makes the effects of inflation

25
00:00:56,000 --> 00:01:00,090
crystal clear today each dollar buys you

26
00:01:00,090 --> 00:01:02,699
approximately 39 times less potatoes

27
00:01:02,699 --> 00:01:05,430
than a hundred years ago or 20 times

28
00:01:05,430 --> 00:01:09,090
less coffee 24 times less bread and so

29
00:01:09,090 --> 00:01:11,299
on