# Adjustment inflation, necessitated (necessitated adjustment inflation)

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- Post ID: 590126
- Modified: 2023-07-25T20:47:18+00:00
- Language: en

## Definition

Newer term for the following chain of effects: - the active part of a country's population in the labor force declines sharply relative to the non-active part (declining birth rate, "burden caused by the elderly people"), - the overall tax burden of the workforce would have to be increased very sharply as a result, which is politically impossible: burden caused by the elderly people), - the overall tax burden of the employed would have to be very strongly increased due to this, which is politically not feasible; on the other hand, however, - social benefits can hardly be reduced, because this would cause strong resistance of all affected groups (active and passive), who consider a lifestyle on a relatively high level as the meaning of their existence, which is why - only indirectly, namely via a higher inflation rate, consumption can be effectively limited and reduced to the available resources. - From this consideration, some deduce a long-term decline of the EUR against the USD, the CNY and the INR (India has a normally distributed population structure). - See age dependency ratio, aging, foreign investment, demography-related, monetary stability, lie-and-deceive thesis, constitutional article one, growth-debt fact, historical. - See also ECB Monthly Bulletin, March 2006, p. 75 ff. (sustainability of public finances calculated with a declining population), ECB Monthly Bulletin, February 2007, p. 65 ff. (sustainability of public finances calculated). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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