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How inflation affects business
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[QUOTE="Etini, post: 278247, member: 90141"] Inflation no matter how you look at it would always have a negative impact on businesses. Inflation would lead to pie purchasing power for the consumers which would translate to lesser patronage. It is even worse for dealers of luxury items. People would only spend their money on the basics of survival. Inflation would lead to a higher cost of production because the prices of inputs would rise. If you used to use $100 to produce 50 units of goods. With inflation, that amount might only take 35 units. It might force a business into debt if it wants to meet up with its normal capacity. I know of a lot of people who shit down their businesses because of the persistent rise in the price of inputs. They couldn't meet up and had to leave the business. Any responsible government should prioritize the need to keep the inflation rate very low. [/QUOTE]
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