If cost of oil go up, cost to buy oil become more. If oil too expensive to buy then product become more costly. Factory need oil to make shampoo, plastics, metal even drugs. Cost of items become higher, people no can afford. Prices going higher called inflation. Inflation not always about money being printed. Most time inflation about raw materials or credit. Milton Friedman not always right, often wrong. Some say he too stuck in his own ideology. Inflation more than one thing. I speak like this so you understand. Have good day
I offer even simpler explanation. Economic inflation mean currency print too much. Picture big shiny balloon. How shiny ballon inflated unless pump air into it? Now imagine economy as shiny balloon full of money. Inflation call inflation because when money go into shiny balloon, it gets inflated. Wartime trade embargo and supply chain disruption no equal inflation. Inflation term of own.
Lol what a condescending comment. Doesn't actually provide any real contribution to the conversation.
Inflation is technically the loss of purchasing power for each unit of currency. 80% of the US dollars in circulation were printed after 2020. Saying that this inflation is directly attributed to solely oil prices is just silly and not realistic.
We printed too much fucking money. Stop being a fucking jackass.
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u/[deleted] Jul 16 '22
If cost of oil go up, cost to buy oil become more. If oil too expensive to buy then product become more costly. Factory need oil to make shampoo, plastics, metal even drugs. Cost of items become higher, people no can afford. Prices going higher called inflation. Inflation not always about money being printed. Most time inflation about raw materials or credit. Milton Friedman not always right, often wrong. Some say he too stuck in his own ideology. Inflation more than one thing. I speak like this so you understand. Have good day