Discussion: "Inflation"
In the past, the single largest asset a person or family owned was their home. However, since the Great Recession and the bursting of the housing bubble in 2007, many families consider owning a home a risky investment.
Check out the Bureau of Labor Statistics (BLS) Inflation Calculator
Test out the impact of inflation on an asset like a home.
• Click on "Try the Inflation Calculator."
o Enter the year you bought your home. If you have not purchased a home, enter a random year.
o Assume that you paid $100,000 for it.
How much has the value of the home changed based on the CPI calculator?
Why does inflation encourage businesses and households to hold physical assets like homes, buildings, and equipment?