Thursday, October 29th

Inflation! It's what scares most people. The topic for learning and discussion today was inflation - what is it and what does it mean? Mr. M took the students through an inflation simulation. Students became heads of households and earned fixed incomes. Mr. M had his store which was representative of the entire productive capacity of the classroom economy. After a round of people earning their fixed income and saving/spending in the store - Mr. M flooded the economy with money. Predictably everyone then bought everything possible. This created severe shortages in the economy and soon prices began to rise. Eventually, most students weren't able to buy anything....inflation.