When an empire enters his twilight years. The nation's people will be more materialistic, less productive, enjoying the luxury of life and self-centered.
This leads to the creation of a divided class of society. The "haves" and the "have not" or the rich/poor or the master/slave or more accurately a classical classes society.
The rich are usually the boss and the poor are usually the worker.
The boss will demand more productivity and a higher price for their goods.
While, the worker will demand less job, higher pay and lower price of goods.
However, here the boss controls the financial wealth and the demand and command system in the economy.
Therefore, the boss will usually win in the end. As a result, the price of goods increase and the worker must be more productive or will be replaced and become unemployed.
As a result, stagflation occurred. Stagflation is inflation with a recession and massive unemployment at the same time. This occurred currently in many developed countries especially USA, Euro Zone, and Canada.
After sometime, worker unemployed, no more fund to buy goods, leads to nationwide depression.
When the government, decided to generate fiat money from the magic printing press during the depression, hyperinflation shows his ugly picture.
That's basically, how stagflation leading to deflation and eventually hyperinflation.
"God bless us"
Jolly! Good Luck!
Yours sincerely,
Dr Lion.
This leads to the creation of a divided class of society. The "haves" and the "have not" or the rich/poor or the master/slave or more accurately a classical classes society.
The rich are usually the boss and the poor are usually the worker.
The boss will demand more productivity and a higher price for their goods.
While, the worker will demand less job, higher pay and lower price of goods.
However, here the boss controls the financial wealth and the demand and command system in the economy.
Therefore, the boss will usually win in the end. As a result, the price of goods increase and the worker must be more productive or will be replaced and become unemployed.
As a result, stagflation occurred. Stagflation is inflation with a recession and massive unemployment at the same time. This occurred currently in many developed countries especially USA, Euro Zone, and Canada.
After sometime, worker unemployed, no more fund to buy goods, leads to nationwide depression.
When the government, decided to generate fiat money from the magic printing press during the depression, hyperinflation shows his ugly picture.
That's basically, how stagflation leading to deflation and eventually hyperinflation.
"God bless us"
Jolly! Good Luck!
Yours sincerely,
Dr Lion.
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