The Effect of Inflation on the Consumer and Money Markets Research Paper - 2

The Effect of Inflation on the Consumer and Money Markets - Research Paper Example The federal government realizes the impact inflation has on the elderly and in their social security system there is a safeguard protocol that protects the beneficiaries. The payments of social security are adjusted each year to offset the effects of inflation.   Another reason the elderly are affected a lot by inflation is that the elderly spend a lot of money on medical expenses. The inflation rate in the medical field is approximately 10%. The inflation varies by goods and industries. When inflation occurs in food prices the lower class is affected the most because poor people have limited income to pay to its food necessities. The amount of inflation in an economy depends on the country. In the United States, the inflation rate as of February 2011 was 2.1% (Tradingeconomics). Historically the United States has always had a low inflation rate. There are parts countries in this world that have been completely destabilized by the effects of inflation. A phenomenon in economics known as hyperinflation can destroy an economic system. Hyperinflation can be defined as extreme or excessive inflation. A country that is currently going through a hyperinflation crisis in Zimbabwe. Two other countries that have suffered from hyperinflation in the past are Argentina and Russia. In the past, the cost of living was much lower. We have heard stories about how our grandparents used to pay a few pennies for a can of coke or a pound of bread. Through the passage of time, things have gotten much more expensive. Despite lower wages, our ancestors had great wealth because they could buy more goods and services with less money. During those years owning land and homes was more accessible because prices were much lower. When inflation goes up in the United States the Federal Reserve can take measures to control inflation. This is called monetary policies. The current chairman of the FED is Ben Bernanke. Inflation is an economic variable that affects the lives of everyone. When inflation is low people enjoy a better standard of living in the long run because their money is not getting diluted due to inflation. In the United States, inflation is currently low at around 2%.

What was the scientific revolution all about How did this major Essay

What was the scientific revolution all about How did this major transition change overall lifestyle - Essay Example The books were title ‘De revolutionibus orbium coelestium’ (On the Revolutions of the Heavenly Spheres) and De humani corporis fabrica’ (On the Fabric of the Human body) respectively. The two books were published in 1543. These two books were later followed by the Principia written by Isaac Newton in 1657. Introduction of Newton’s work was viewed as the climax for the works previously carried out in physics and astronomy since the Principia had laid a foundation for future developments in the two fields (Jacob 27). Before the advent of science, religion and philosophy were the main forces, which influenced people’s thinking. More specifically, the power of religion was more significant in Western Europe, and it had control over many aspects. Scientific revolution allowed people to  develop a distinct perspective about the world; science replaced philosophy. Religion-based ways of thinking started to fade out and logic was applied when searching for answers to questions that puzzled people regarding life, death, world and the universe. Therefore, science gave people a chance to solve numerous problems without consulting the gods as was the norm when religious approach was applied in solving issues (Shapin 47). Before the era of the scientific revolution, people used to view the world and the existing things as something only of god’s creation. This fact hindered many scientific developments since many people feared interfering with the gods’ creations, and religion was such a powerful force that united people together and never accepted any scientific development (Shapin 49). At the same time, the philosophical and religious thoughts used in solving problems before the advent of the scientific revolution advanced further. The educated People from the West at the time of the scientific revolution got a chance to advance their scientific skills to greater levels, which improved their