New Car price inflation? Will it continue to inflate (read below)?

Inflation is part of a healthy economy. Economists go to school for many years before they get to work for the government. If you want economic growth then it historically comes with some inflation. Economists do work to try to slow inflation.

Following the Great Depression (Stock Market Crash) and World War I, inflation became runaway in many countries including our own. Things got way more expensive than people could afford.

There is a reverse process known as 'stagflation' where inflation does not happen. That is just as bad. For a healthy economy there will always be some inflation.

With our recent economic crisis, the problem is that people's paychecks are not keeping up with inflation. This is a serious concern. A small majority of Americans now hold 70% of America's wealth and take home way more money than the average working American. For the wealthy, doubling the car prices is no big deal, they have plenty of money.

You cannot analyze inflation by looking at only one product like cars. Sometimes products take a huge adjustment when they have remained less expensive for too long. As Americans we pay less for a gallon of gas than in most other industrialized nations because our government subsidizes the gas to make it more affordable for Americans to get to work. To get rid of the national debt, the government is subsidizing less and less when it comes to gas prices and that is why they continue to rise. They are making an adjustment to be more inline with global gas prices.

The big concern now is how to best redistribute the wealth. Conservatives have been claiming that if they lowered taxes for rich people that they would create more jobs. So we did that but they only created more jobs overseas in poorer countries where labor is cheaper. The only way we will ever fix this is with greater taxes for the wealthy and greater taxes on products made overseas.

If we raised the taxes on products made overseas then companies would be forced to bring manufacturing back to American shores thereby creating more jobs and better stimulating the economy. We cannot trust the wealthy to create jobs. They only care about helping themselves and other wealthy people to get the remaining 30% of America's wealth that they do not already own.

It's not a sure thing, but it's possible. Doubling in 20 years is just 3.5% inflation a year, which is pretty typical. In the US, inflation was high in the late 70s, but it hasn't been particularly high over the past 20 years. So I wouldn't expect it to be lower in the next 20 than it was in the last 20. In the US, inflation has been low for the past few years due to the poor economy. And I expect it'll stay low for another couple years due to the poor economy. But it should pick up eventually. And there's a good chance it'll spike sometime in the next 20 years if we don't get the national debt under control.

If the value of a dollar continues to fall the price of a new car could stay the same for twenty years with pretty much the same outcome as the car doubling in price.I would bet on both the value of dollar falling and the price of cars to double,or triple...