About three months ago my neighbour announced that he was going to make the wall between our houses taller. This doesn't sound like a problem at first, but then you start to realise what all the implications are. The first problem is that the wall is built with bricks. The wall then gets coated with a special plaster primer paint, and after that, it gets painted with a coat of paint that is resistant to the elements of mother nature. Now you may ask me why that is a problem? See, bricks are placed on top of each other and cemented in place. For those of you who don't know, cement is a runny substance that will succumb to gravity when it is placed on the side of a surface which will then make it run down the surface. In this case, the brick wall is the surface on which the cement is being placed. When the cement runs down the wall it creates this ugly grey patches on our once beautifully painted wall. I'm sure a lot of you at this point is saying, "I thought I cli...
In the previous post , we looked at what inflation is and how they calculate it. In today's post, we are going to, as always, look at inflation with a practical example called The Brick Wall Theory example. Don't know what that is? Read about it here . If you don't want to read about what inflation is and just want to see an example that is also fine. I will tell you in short what inflation is to make sure that you will be able to understand the example. Inflation is the process of a sustained, significant rise in the general price level over a period of time. Basically, inflation is the process where money loses its value over time. Your groceries might cost you $50 today, but in ten years time, the same amount of groceries is going to cost you $65. This post isn't going to explain all the things we already covered here with an example, rather we are going to look at the causes of inflation and then we are going to look at what the effects on the brick wall co...